Forex Day Trading Explained Develop your Forex Day Trading Strategy

Forex continues to be one of the most popular assets for day traders and as more and more people realise they can access the markets from just about any internet-enabled device, it seems that this is unlikely to change in the near future.

We, at CAPEX, provide an award-winning platform for trading Forex – as well as numerous other instruments. We believe that it’s important to understand the fundamentals of trading before you hit the markets, which is why we’ve put together this guide on how to trade currency pairs.

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More than 55 CFDs currency pairs

We, at CAPEX, offer trading in over 55 CFDs on Forex pairs, ensuring our customers have the flexibility to focus on their chosen currencies in several combinations. Trading currency pairs offers a great deal of versatility and allows traders to potentially profit even if a currency drops in value by short selling.

Whilst some traders prefer to concentrate on one or two currencies, we think it’s important to have options – which is why we provide such a wide range of pairs.

Practice Forex trading with a demo account

At CAPEX, we offer all new users a demo account. If you are interested in Forex day trading but are perhaps new to the markets, then this is the perfect opportunity to learn about the various charts, tools and techniques used.

By using a practice account, you can open and close trades using real currency pairs, implement popular trading strategies and even try out different markets and all without risking your capital. We believe education is a key factor in determining future trading success and our demo accounts provide you with the perfect environment to get practical, hands-on experience of Forex day trading.

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Why trade Forex?

Forex is one of, if not the most popular asset for retail trading. One of the reasons is that the markets offer a great deal of volatility – and with this volatility comes opportunity. But what is volatility? Put simply, the volatility refers to price movement. If you look at the comprehensive charts displayed on CAPEX trading platforms, you’ll see that the price of one currency against another is constantly in flux.

How and when to trade Forex?

When trading Forex pairs, it’s possible to speculate on price movement in either direction. In addition, many traders use leverage to maximise their returns. Leverage then allows traders to make more significant returns, even if there is only a small degree of price movement.

Another advantage of Forex is that it can be traded 24/5, whereas stocks often depend on certain market hours, meaning you might find yourself limited to particular assets based on your schedule.

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What is Forex day trading

One of the most popular approaches to the Forex market is day trading. As the name suggests, this involves opening and closing positions within a single trading day. Whereas investing often involves waiting years to see returns, day traders using leverage can potentially see significant returns day to day.

The advantage of trading Forex CFDs, as you can do at CAPEX, is that you don’t actually need to exchange currencies – the CFD derivative simply allows you to speculate on which way you think the price of a currency will move against another. Effectively, the idea is that you enter into the contract with another party and either pay or get paid the difference in price between the opening and closing of the position – depending on whether it went your way or not.


Factors influencing Forex Trading

Graph Shape

Important political developments

Tax changes

Consumer & producer preferences – CPI or PPI reports

Interest Rate Decisions - Bank of England MPC Announcements, Fed Interest rate Decisions, etc.

Other market-related FX news

Visit our Special Articles page for the latest market news on cryptos, stocks, indices, and more!

5 tips for Forex day trading

Forex trading has the potential to be a great experience, but anyone new to the markets should be aware that learning how to trade requires discipline and dedication. To give yourself the best experience, we also recommend the following:

Choose the right provider

You need a broker that will give you access to the markets you need – this is a prerequisite – but it’s also important to find an operator that can further support you in your trading journey. Here at CAPEX, for example, we pride ourselves on our high level of customer services, as well as our diverse range of CFDs, with over 2100 instruments listed for trading.

Practice makes perfect

As with any other skill, trading requires practice. This can often be a barrier to entry for many would-be traders who don’t want to risk losing money whilst still learning about the market. It is therefore important to choose a provider that offers a demo account – an environment in which you can get to grips with the markets, learn how to read charts and understand the different tools available, and all without risking your capital.

Don’t overreach yourself

This is an important thing to bear in mind. Even if your trading career starts off with a high degree of success, you should always stick to a pre-planned budget and never overreach yourself. Alternatively, if you find positions are often moving against you, never attempt to chase losses. Trading has the potential to be very lucrative but traders should always remember that it is possible to lose money – always be looking to mitigate losses and only invest what you can afford to lose.

Consider using a strategy

Using a strategy can start off simple – perhaps just a weekly trading schedule and budget. However, as you gain more confidence as a trader you might want to look into some of the more advanced trading strategies used by professionals. These include the Fibonacci strategy, the 200 EMA strategy or the Bollinger Band strategy.

Never stop learning

Trading should involve ongoing learning. Whether you are adding new strategies to your arsenal or learning how to use more advanced tools, you need to make sure you are always honing your skills. You might also look to enter other markets, or learn how to swing trade in addition to day trading. Fortunately, at CAPEX we provide numerous educational resources to help you keep learning throughout your trading journey.

Knowledge is Power!

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An investment in learning how to trade always pays the best dividends. Get access to the right resources, tools and information so you can trade with all the information available!

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Choosing a Forex trading platform

If you’re looking to start Forex day trading then the first thing you’ll need to do is find a platform that can provide such a service. Choosing the right operator is not something that should be rushed – you should take the time in finding one that meets your trading objectives. Here are some key features to look out for.


Ultimately, Forex day trading is all about making returns and no one wants to see their profit eaten away by high broker fees. At CAPEX, we offer commission-free trading, meaning the only trading costs you incur are reflected in the spread – the difference between the sell price and the buy price of a currency.

There are other costs associated with trading and it’s important that any platform clearly lists these. At CAPEX all trading conditions are listed on our website.

Licence and regulation

As a general rule, any platform offering financial services is subject to very strict licencing and regulatory rules. These usually differ depending on which jurisdiction you are in, but effectively they act as a safeguard – giving you a certain reassurance that a platform has met with the criteria required to provide financial services.

At CAPEX, for example, we are registered and authorised by numerous financial authorities around the world, which has led to our becoming one of the most trusted names in the world of CFD trading.

Customer service

There’s a lot to learn when it comes to Forex day trading – not just about the markets but also about learning to use your chosen trading platform. For this reason, it’s important to choose a provider that can offer an adequate level of help and support. At the very least, you should aim to find a platform that allows you to get in touch both in real-time – via webchat and/or telephone – as well as via email for out of hours queries. At CAPEX, you’ll find the best customer service ready to answer your questions.

Trading platforms

Of course, a broker or exchange is only ever as good as the trading platforms it offers, so this should always be a primary concern when you are looking to start Forex day trading – afterall, you could be spending a lot of time at the console.

Of course, if you’re new to the markets, then you might not know what constitutes a good platform, so the best thing is to find a provider that can cater for all levels of trader. For example, here at CAPEX we offer our bespoke web trader as well as the industry-standard MetaTrader 5 which, between the two, offer the perfect environment for both novice and pro traders.




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What else is important to know about Forex day trading?

Is Forex day trading safe?

Forex trading, like most forms of investment, carries inherent risk. The markets fluctuate a great deal and, of course, no one can say for certain what will happen in the future. However, you can mitigate risk by ensuring you stick to a budget and take the time to learn the fundamentals of trading. It’s also important to ensure your broker has client protections in place.

What currencies can I trade?

The number of currencies you can trade will typically vary depending on your broker or exchange. Whilst here at CAPEX we have over 55 CFDs on currency pairs listed, you may find other platforms have fewer options. The most popular currencies to trade are EUR/USD, USD/JPY and USD/GBP.

Is day trading just for Forex?

Whilst the inherent volatility of the Forex market makes it the perfect environment for day traders, it’s worth bearing in mind that you can apply the technique to other information. For example, you might want to take a look at our crypto guide.

What do I need to open a Forex trading account?

Entering the Forex market has never been easier – effectively all you need is an internet enabled device that can access an online trading platform. When opening an account, you may however be required to provide a copy of your ID and proof of address, so you’ll need to make sure your documents are currently valid.

Conclusion – Day trade Forex CFDs at CAPEX

Forex day trading is growing in popularity as more and more people realise they can easily access the markets via their laptop, tablet or mobile. The reason Forex in particular is so well suited to day trading is because the markets are highly volatile – which means there is plenty of opportunity to make profits if you can accurately predict which way prices will move.

We are one of the leading providers of Forex trading and our platform is suitable for both trading novices and seasoned pros. If you are curious about Forex and would like to find out more, feel free to spend some time at the CAPEX Academy to learn the basics, or jump right into the markets, risk-free, with our demo account.

Forex Day Trading – FAQ

How do I start trading Forex?
Is it risky to trade Forex with daily trades?
What is day trading?
Is Forex day trading easy?
What are the benefits of day trading with forex?