How Does Forex Trading Work?
What is Forex?
Forex (Foreign Exchange) is the abbreviation for "Foreign Exchange," which refers to the exchange of foreign currencies.
Simply put, it is the global market where traders can buy and sell currencies with the aim of making a profit.
In the forex market, currencies are always traded in "pairs." This means that when you buy a certain currency, you are simultaneously selling another currency.
How Does Forex Work?
Every trading operation in the forex market is based on a specific exchange rate between two currencies.
The exchange rate is the value of one currency compared to another. For example, if you want to trade the Euro against the US Dollar (EUR/USD), you will either buy the Euro against the Dollar or sell the Euro against the Dollar, depending on your expectations for the price movement.
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Basic Principles
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Pairs: In the forex market, currencies are traded in pairs like (EUR/USD), where the Euro is the base currency, and the Dollar is the quote currency.
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Price: The price of the pair (e.g., EUR/USD = 1.10) shows that 1 Euro is equal to 1.10 US Dollars.
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Spread: The difference between the buying price and the selling price, which is the cost of trading.
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Leverage: A tool that allows you to trade with amounts larger than the actual capital you have, which can increase profits or losses.
Forex Trading Hours
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The forex market trading sessions start on Sunday at 21:05 and continue until Friday at 20:59. However, some currency pairs have specific trading hours, such as:
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USDCNH, USDTHB: From Sunday 23:05 until Friday 20:59.
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USDILS, GBPILS: From Monday 05:00 until Friday 15:00, with a daily break between 15:00 and 05:00. All times are based on server time (GMT).
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Spread
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The spread is constantly changing. The numbers shown in the table above represent the average spread based on the previous day's trading. To monitor the live spread, you can refer to your trading platform. Please note that the spread may increase during periods of low market liquidity, such as overnight, and may continue until liquidity returns to normal levels. The minimum spread available on a Zero account remains fixed at 0.0 points 95% of the time.
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Swap
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The swap is the interest rate applied to open positions overnight. The swap is applied at 21:00 GMT every day, except for the weekend, until the position is closed.
Trading in the Forex Market
Advantages of Forex Trading with INVSS
Unbeatable Trading Costs
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Trade CFDs on Forex while enjoying extremely tight spreads and very low commissions – some of the best rates in the industry.
Use Leverage for an Extra Boost
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Trade Forex with leverage of up to 1:400 to multiply the potential results of your trading.
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A Chance to Profit Whether Prices Rise or Fall
You can enter a sell position using Forex CFDs and benefit from falling prices, or take a buy position to take advantage of rising price trends.
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Fast Execution
Take advantage of the continuous movement of major currency pairs and trade with ultra-fast execution. Enjoy having your forex trading orders executed in fractions of a second on our platform.
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Zero Spread
Benefit from initial spreads starting as low as 0.0 pips on popular currency pairs such as EUR/USD and USD/JPY.
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Leverage up to 1:400
Trade Forex with Leverage of up to 1:400. With as little as $250, you can have a capital impact of $50,000!
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Execution You Can Trust
Benefit from the absence of manual intervention from the dealing desk, along with 99.9% order execution rates.
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Protected and Secure
Your data is secure, and your funds are held in separate bank accounts in accordance with regulatory requirements.
How Does Forex Trading Work with the INVSS Platform?
With over 45 currency pairs to choose from, there is always an opportunity to benefit from global fluctuations. The forex market operates 24 hours a day, 5 days a week, so there are always trading opportunities to take advantage of. Benefit from very low trading costs in foreign currencies and easy access to global markets through our platforms.
Open a live account with INVSS.
Deposit funds into your new account.
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Analyze the forex markets and choose the product you wish to trade.
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Start trading forex by opening and monitoring your trade position.
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When you believe the time is right, close the position to complete the trade.
Why is INVSS Your Best Choice?
Double Your Capital
Trade with Leverage of up to 1:400
Safety of Funds
Your funds are kept in separate accounts.
Islamic Accounts
Trade over 600 assets with no swaps!
Regulated and Licensed Broker
FCA, ASIC, DFSA, SCB, CMA, CySEC & BaFin
Technical Support & Customer Service
Arabic support available 24/6 to assist you.
Over 1,200 financial products to trade
Forex, indices, commodities, stocks, and more
Frequently Asked Questions
Multiple payment methods available worldwide
