Foreign Exchange

Foreign Exchange (FOREX, FX) is the cornerstone of all international capital transactions. Market participants enter into Foreign Exchange transactions either by way of hedging to protect their exposures in various currencies or for speculative purposes.

Today’s technological advances allow banks and brokers to operate on screen based systems where two-way prices are continuously published. These systems guarantee greater transparency and within an instant, market participants can have access to this price information anywhere in the world and trade on it.

Most currency pairs are traded against the U.S. Dollar. The major currencies, the EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD and AUD/USD dominate the majority of the trading and benefit from the deepest liquidity.

Click here to view an FX trading example