How To Trade Currencies Forex Guide at CAPEX.com

Forex, short for foreign exchange, is a decentralized market that deals with the trading of global currencies. The annual turnover of the Forex market is over six trillion dollars, making it the most significant market across the globe.

Why is Forex interesting for traders?

While currencies are exchanged for several reasons, such as travelling or purchasing goods or services internationally, Forex traders trade currencies to profit from the shifting prices of currencies.

For example, if a trader has 100 USD and feels USD will go down whereas GBP will rise in value, the trader will exchange his USD for GBP. If his speculation were correct, he’d end up in profit. Meanwhile, if his speculation was incorrect, he’ll end up losing money.

Here at CAPEX, we offer over 55 currency pairs that can be traded through CFDs, with some of the tightest spreads and highest leverage.

Trading CFDs is a great way to trade with more flexibility. CFDs refer to contracts for differences and are a popular form of financial derivative. CFD traders buy and sell contracts that are based on speculations. Two parties speculate on an asset’s future price and agree to exchange the difference in the asset’s value over a specific period.

The best thing about trading CFDs is that you don’t have to buy and sell the asset or security, so the trading costs are lower. Plus, trading CFDs in Forex means you can invest with leverage and profit from currencies without actually owning the currencies. All you have to do is speculate on a currency’s price and buy or sell positions according to your speculation.

Plus, you can renew your CFD near its expiration date as long as both parties agree to do so.

There are many benefits to trading Forex through CFDs:

• You can trade with lower trading costs.
• You get more flexibility as your trades can be renewed.
• CFDs offer more flexible lot sizes.
• There’s a wider range of hedging options available to CFD traders.
• You don’t have to buy or sell currencies.
• You get more flexible leverage options.

Despite being risky instruments, Forex can be traded profitably if you apply the right strategies at the right time. Here are a few Forex trading strategies that are suitable for traders:

Price action trading strategy

The price action trading strategy involves studying the recent price movements in any market rather than relying on technical indicators to predict market directions. A trader will study recent and historical price movements and utilize technical indicators to make a subjective decision to invest at a given time and in a given market. Here at CAPEX, we have integrated technical indicators on our trading platforms to help traders’ judge market directions better.

Trend trading strategy

As the name suggests, trend trading strategy refers to the buying and selling of assets or securities in sync with the market trend. For instance, if the market is going up, you will look to invest in or buy an asset or security. Meanwhile, when a market is going down, you sell an asset or security. We offer traders a blog where expert traders keep you updated with ongoing market trends.

Range trading strategy

The following strategy revolves around the concept that prices remain in a specific range for a while, so traders identify a range and then buy and sell assets within that range. It usually involves short term investments, where you buy or sell assets until the asset exits the range you had identified.

Here’s why we, at CAPEX, are known for being one of the best online CFD brokers every kind of trader.

Excellent trading platform

The last thing you’d want is to trade on a platform that isn’t smooth or doesn’t function properly. A smooth and user-friendly trading platform can make your trading experience way more enjoyable and, hopefully, profitable. Here at CAPEX, we offer a choice of two trading platforms to our users – CAPEX WebTrader & the MetaTrader 5 (MT5). Both our trading platforms are recognized for their user-friendliness and high level of intuitiveness. From the moment you land on our platform, you’ll notice that everything is neatly aligned and easily accessible.

Over 50 currency pairs

Here at CAPEX, we understand that diversifying your trades is important as it allows you to trade with reduced risk and also allows you to build a better trading portfolio. Hence, we offer our traders more than 50 currency pairs that include all major currencies – EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD etc.

Low spreads and high leverage

The best way to trade Forex is with the lowest spreads and highest possible leverage. Here at CAPEX, we offer traders spreads that are as low as 0.01 & leverage that goes up to 1:30. Plus, we don’t charge any commission on withdrawals and deposits and have some of the lowest spreads in the markets. These are some of the reasons why our users prefer us. .

Accessible customer support

We value our customers and want them to have the smoothest trading experience, which is why our customer support team is available seven days a week. You can seek customer support through phone, live chat, and email. Plus, we recommend that you visit our FAQs page, where we’ve answered most recurring questions elaborately.

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