What Is Forex Trading? Forex Meaning at CAPEX.com

Forex, short for foreign exchange, is recognized as the world’s largest market with an annual turnover of over six trillion USD. Continue reading our guide to learn more about what is Forex trading and how to trade Forex through CFDs with the best CFD online broker – CAPEX.com.

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Trade over 55 currency pairs

While trading Forex, we at CAPEX would always recommend diversifying your portfolio. Why? Simply because the Forex market is highly volatile and several factors can affect a currency’s value. Luckily, here at CAPEX, we offer traders a range of 55 currency pairs, including the major currencies – USD, GBP, CAD, AUD, etc. So, you can invest in several currencies at once while taking advantage of the tightest spreads too.

Invest on the smoothest trading platforms

Trading on a platform that isn’t smooth or feels like a maze can ruin your trading experience. The key to trading successfully is signing up with a trading platform that is user-friendly, highly intuitive, and exceptionally smooth and stable.

Here at CAPEX, we offer two of the smoothest trading platforms to our users – CAPEX WebTrader & MetaTrader 5 (MT5). From the moment you sign up on our platforms, you’ll notice how each function is highly accessible, and our platform is designed in a user-friendly manner. Whether you want to begin a trade, access your investments, or reach out to our customer support team – everything is a click away.

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What is Forex trading? – Forex trading meaning and explanation

The foreign exchange (Forex) is a globally decentralized market that highlights the current selling rate of a currency. People exchange foreign currencies for numerous reasons, such as travelling or international purchases. Forex traders, however, trade currencies in order to profit from the change in currency values of a period of time.

How can a trader make a profit with Forex?

For instance, a trader can exchange GBP for USD if he believes the value of USD will go up shortly or the value of GBP will go down. If his speculation is correct, he’ll end up making a profit. Most of the Forex market is made up of a few major currency pairs, which are; EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, and NZD/USD.

It’s important to consider the risks that tag along with Forex trades because there are numerous factors that may affect a currency value, including economic, environmental, and political events. Here at CAPEX, we offer Forex trading through CFDs along with several tools and features to reduce risk while trading.

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Pros and cons of trading Forex

Trading Forex has many advantages over other markets:

  • The Forex market is the largest, with huge annual returns
  • Since Forex trading is simple and easy to understand
  • The transaction costs for trading foreign currencies are lower compared to other trading instruments.
  • Forex trading allows traders to seek opportunities in falling as well as rising markets.
  • The Forex market has high liquidity.
  • There is a good range of trading options, so you can diversify your trades by investing in various currency pairs.
  • Forex can be traded with high leverage.

There are also a few cons about trading Forex:

  •  The Forex market is highly volatile as several factors impact the value of a currency.
  • The leverage offered to Forex traders is usually too high and it increases the risk in trades.

 

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!

Trading Forex through CFDs – CFDs and Forex: what it is

CFD or contracts for difference is an agreement between two parties to exchange the value of an underlying asset or security after a given period of time. CFDs can be traded on a wide range of instruments, including Forex.

The benefits of trading CFDs are that you don’t need to buy or sell an underlying asset; instead, you only buy or sell a contract. Similarly, CFDs can be traded with low or high leverage depending on the broker you trade with. Plus, trading CFDs allows you to diversify your trades whenever you want and explore your trading options with limited capital investments.

Here at CAPEX, we offer CFDs on over 2100 tradable instruments. We offer CFDs on Forex pairs with the tightest spreads that start from 0.01 and leverage that goes up to 1:30. Plus, we offer more than 55 currency pairs, out of which you can choose from major currency pairs, minor currency pairs, or exotic currency pairs based on your preference.

Award-winning broker

You don’t need to just take our word for it – we’ve won a whole stack of awards over the past few years which shows we deliver a premier online trading experience. For example, we won the award for Best Forex Educational Broker at the 2020 Forex Expo awards, which shows we’re a perfect choice for beginner traders. We’ve also been named as the broker with the Best Trading Tools by Brokercheck, the Best Dealing Room at the 2019 Forex Awards, and the Best New Forex Broker Middle East at the Global Banking & Finance Review 2020.

How to trade Forex the best way – A few tips

Trading can be an overwhelming experience, especially if you’re investing in a risky instrument such as CFDs. However, you can reduce the fear of investment and increase your chances of making profitable trades with the help of a few tips. These include:

Know your market

Before investing in any market, it’s necessary that you’re aware of the factors that affect that market and whether it’s worth investing in or not. So, until you’re an expert trader, research is your best friend. Hop on to your search engine and look up the Forex market, search trading strategies, and learn how to understand analytics. The more you know, the better you’ll trade.

Practice on a CFD demo trading account

Practice makes perfect. Learning how to trade can take time and dedication, which is why demo account features are a great place to start. You can sign up on our CFD demo trading account for free and practice trading in the Forex market until you feel confident enough to invest through an actual trading account. This will also help you understand the risks involved with Forex CFDs and how you can minimize that risk while trading.

Start with smaller investments

It’s completely normal to get excited and invest more than they can afford to lose. Don’t make that mistake – instead, start off with fewer capital investments and lower leverage. Take your time to understand how the Forex market works and the process involved in CFD trading. Once you start gaining confidence and begin making a profit, slowly increase your investment size. Taking one step at a time is the best way to learn to trade securely.

Trade with the best online broker

Never undermine the importance of trading with a licensed and regulated broker that offers excellent trading services. The broker that you choose to trade with plays a massive role in the success or failure of your trading journey. Here at CAPEX, we offer traders a wide range of learning and trading instruments that are focused on improving their trading experience. You can learn trading through our online trading school, CAPEX Academy, where you’ll learn the basics such as Forex meaning and Forex definition, and how you can begin trading Forex through CFDs.  You can also access our online trading dictionary, through which you can learn basic trading terminologies.

Knowledge is Power!

When it comes to your money - it's priceless.

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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Why trade Forex with CAPEX.com?

Choosing the best online broker is an essential aspect of your trading journey. We at CAPEX are known as the best for a number of reasons, out of which a few are:

  • We offer excellent customer support through phone, live chat, and email seven days a week.
  • CAPEX is regulated and licensed under a tier-1 financial authority known as CySEC. Plus, we are registered with several financial institutions across the globe.
  •  Our trading platforms are innovative and user-friendly, with everything aligned neatly and in an accessible manner.
  • We offer over 55 currency pairs for trading.
  • We offer free withdrawals and deposits with zero commissions.
  • You get to trade with extremely tight spreads, starting from 0.01.
  • You can trade Forex with leverage up to 1:30

 

Register

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Verify

Verify

Send over your documents and verify your account.
Deposit

Deposit

Login into your CAPEX.com account and deposit money.
Trade

Trade

Start trading with CFD’s and over 2100 other instruments.

Sign up now with CAPEX – step by step process

Signing up with us at CAPEX won’t take more than a few minutes. All you need to do is:

  1. Visit our website and click on the sign-up option.
  2. Enter basic details such as your name, email address, and age.
  3. You’ll then be asked to complete your registration by entering a few details, such as your income, taxation information, and credit history.
  4. Finally, you’ll be asked to take a quick assessment. This assessment is designed to judge your trading knowledge and capacity, so we can place you on our platform accordingly.

Once you’ve completed the above steps, your account should be verified and ready to use shortly. You can begin your trading journey right away, or you can practice trading on our demo account beforehand to obtain confidence and further polish your trading skills.

Final thoughts – Forex explained at CAPEX

While trading Forex is a great way to invest your money, it’s essential that you trade with the best online broker for Forex trading. Here at CAPEX, we offer Forex CFDs to our clients along with a range of tools to support traders along the way. Our traders benefit from a wide range of trading options, excellent learning tools, and a smooth trading platform.

Trading Forex through CFDs offers traders much more flexibility compared to Forex trading. If you’re looking for a simple and convenient way to invest in Forex, sign up with us today and begin trading Forex CFDs on the best online CFD broker.

What Is Forex Trading – FAQ

🤔 Can trading Forex make you rich?
🤷 Is it better to trade with higher leverage or lower leverage?
👀 CFDs vs Forex: Which is better?