Foreign exchange trading involves trading one currency pair against another, predicting that one currency will rise or fall against another.
Example: Euro versus the US Dollar (EUR/USD).
BUYING: EUR/USD
The price of EUR/USD represents the amount of $USD that can be exchanged for €1.
EUR/USD = 1.09104
This means that currently, €1 is equal to USD $1.09104
The price of the Euro against the US Dollar (EUR/USD) is 1.09104 and you decide to buy 1 standard lot (the equivalent of €100,000) at 1.09104 (the current buy price).
One hour later the price has moved to 1.10104 in your favour.
This gives you a profit of USD $1000
How to calculate:
Current buy price at 1.09104
€100,000 x 1.09104 = USD $109,100
Closing price at 1.10104
€100,000 x 1.10104 = USD $110,100
Your profit
([€100,000 x 1.09104] – [€10,0000 x 1.10104]) = USD $1,000
The most popular Froex pairs involve major global currencies and experience the highest trading volumes and liquidity.
*MIN : minimum | *AVG : average
Product | Raw ECN | Raw Standard | |||
Symbol | Description | MIN | AVG | MIN | AVG |
AUDUSD | Australian Dollar vs United States Dollar | 0.0 | 0.2 | 1.0 | 1.2 |
EURUSD | Euro vs United States Dollar | 0.0 | 0.1 | 1.0 | 1.1 |
GBPUSD | British Pound vs United States Dollar | 0.0 | 0.4 | 1.0 | 1.4 |
USDCAD | United States Dollar vs Canadian Dollar | 0.0 | 0.3 | 1.0 | 1.3 |
USDCHF | United States Dollar vs Swiss Franc | 0.0 | 0.3 | 1.0 | 1.3 |
USDJPY | United States Dollar vs Japanese Yen | 0.0 | 0.2 | 1.0 | 1.2 |
AUDCAD | Australian Dollar vs Canadian Dollar | 0.0 | 0.4 | 1.0 | 1.4 |
AUDCHF | Australian Dollar vs Swiss Franc | 0.0 | 0.5 | 1.0 | 1.5 |
AUDJPY | Australian Dollar vs Japanese Yen | 0.0 | 0.3 | 1.0 | 1.3 |
AUDNZD | Australian Dollar vs New Zealand Dollar | 0.0 | 0.6 | 1.0 | 1.6 |
CADCHF | Canadian Dollar vs Swiss Franc | 0.0 | 0.4 | 1.0 | 1.4 |
CADJPY | Canadian Dollar vs Japanese Yen | 0.0 | 0.3 | 1.0 | 1.3 |
CHFJPY | Swiss Franc vs Japanese Yen | 0.0 | 0.5 | 1.0 | 1.5 |
EURAUD | Euro vs Australian Dollar | 0.0 | 0.4 | 1.0 | 1.4 |
EURCAD | Euro vs Canadian Dollar | 0.0 | 0.6 | 1.0 | 1.6 |
EURCHF | Euro vs Swiss Franc | 0.0 | 0.4 | 1.0 | 1.4 |
EURGBP | Euro vs British Pound | 0.0 | 0.3 | 1.0 | 1.3 |
EURJPY | Euro vs Japanese Yen | 0.0 | 0.3 | 1.0 | 1.3 |
EURNOK | Euro vs Norwegian Kroner | 0.0 | 9.5 | 1.0 | 10.5 |
EURNZD | Euro vs New Zealand Dollar | 0.0 | 1.1 | 1.0 | 2.1 |
EURSEK | Euro vs Swedish Krona | 0.0 | 9.4 | 1.0 | 10.4 |
EURTRY | Euro vs Turkish Lira | 0.0 | 9.7 | 1.0 | 10.7 |
GBPAUD | British Pound vs Australian Dollar | 0.0 | 1.0 | 1.0 | 2.0 |
GBPCAD | British Pound vs Canadian Dollar | 0.0 | 1.0 | 1.0 | 2.0 |
GBPCHF | British Pound vs Swiss Franc | 0.0 | 0.7 | 1.0 | 1.7 |
GBPJPY | British Pound vs Japanese Yen | 0.0 | 0.6 | 1.0 | 1.6 |
GBPNZD | British Pound vs New Zealand Dollar | 0.0 | 1.6 | 1.0 | 2.6 |
NZDCAD | New Zealand Dollar vs Canadian Dollar | 0.0 | 0.8 | 1.0 | 1.8 |
NZDJPY | New Zealand Dollar vs Japanese Yen | 0.0 | 0.4 | 1.0 | 1.4 |
NZDUSD | New Zealand Dollar vs United States Dollar | 0.0 | 0.3 | 1.0 | 1.3 |
SGDJPY | Singapore Dollar vs Japanese Yen | 0.0 | 0.6 | 1.0 | 1.6 |
USDCNH | United States Dollar vs Chinese RMB | 0.0 | 4.6 | 1.0 | 5.6 |
USDHKD | United States Dollar vs Hong Kong Dollar | 0.0 | 4.1 | 1.0 | 5.1 |
USDMXN | United States Dollar vs Mexican Peso | 0.0 | 9.4 | 1.0 | 10.4 |
USDNOK | United States Dollar vs Norwegian Kroner | 0.0 | 9.1 | 1.0 | 10.1 |
USDSEK | United States Dollar vs Swedish Krona | 0.0 | 9.2 | 1.0 | 10.2 |
USDSGD | United States Dollar vs Singapore Dollar | 0.0 | 0.8 | 1.0 | 1.8 |
USDTHB | United States Dollar vs Thai Baht | 0.0 | 1.0 | 1.0 | 2.0 |
USDTRY | United States Dollar vs Turkish Lira | 0.0 | 8.8 | 1.0 | 9.8 |