What is Forex trading?

What is Forex trading?

Forex trades include a combination of two currencies (called a cross or currency pair) in which one currency is bought (long) and the other is sold (short).

A trader speculates on the prospect of one of the currencies appreciating in value in relation to the other. A successful trade correctly anticipates the fluctuation in exchange rate between the currencies.

Forex is traded on margin

The industry practice is to trade Forex with leverage (compared to e.g. Stock trading) as currency exchange rate fluctuations tend to be relatively small even on volatile days. When opening a position the trader only places a small amount (called "margin") of the total nominal value of the position. Margin trading allows traders to buy and sell positions that have a greater value than the capital in their account.

Margin trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all traders. Ensure you fully understand the risks involved and seek independent advice if necessary. Please also refer to Fab Investing' Risk Warning.

General

We offer 182 FX currency crosses (including gold and silver, platinum and palladium) and aggregate our liquidity from some of the top providers in the market. Moreover, you can access 45 FX Options, traded directly on live-streaming prices through Fab's exclusive FX Options Board.

Our parent company, Fidelity Bank Ghana,

Why trade FX with Fab Investing?

  • Trade 182 Spot FX currency crosses including gold and silver, platinum and palladium.
  • Highly competitive Bid/Ask spreads.
  • Choose from Over-The-Counter (OTC) Options or Forward Outrights.
  • Versatile order types including limits and trailing stops.
  • Trade on live-streaming quotes over our outstandingly reliable trading platforms.

Spot Metals

Trade Precious Metals online with Fab Investing

Fab Investing offers FX crosses in precious metals. Gold, silver, platinum and palladium are available as spot traded commodities, ideal for both long and short-term speculative trading on our suite of award-winning online trading platforms.

Spot Gold can be traded versus US dollar, Euro, Japanese Yen, Australian dollar, Hong Kong Dollar and even the Off-shore Yuan. This brings the total number of precious metal crosses in our offering to 19.

Consider the power of precious metals trading to:

  • Diversify an existing FX portfolio, by trading Metals as a Spot, or as an Option, Futures, CFD, ETF or ETC
  • Trade long or short on live streaming prices
  • Trade from 1 ounce and up with all advance order types available.

For full details of all available Spot Metals, please refer to the FX Trading Conditions.

Forward outrights

Trader FX Forward Outrights with Fab Investing

Fab Investing offers FX Forward Outrights which will enable investors to buy or sell currencies at a fixed rate of exchange and settlement date in the future. Most of our 182 Forex currency crosses are available as FX Forwards and are traded directly on live tradable prices through our award-winning online trading platforms.

With online FX Forwards Outrights, traders can:

  • Hedge against exchange rate fluctuations and lock in an exchange rate for future FX transactions.
  • Take advantage of interest rate differentials between two currencies.
  • Access a wide range of FX Forward Outrights on live tradable prices available throughout Fab Investing platforms.
  • Select any value date up to six months (forward/ahead).
  • Trade FX Forward Outrights from the same trade module as spot by simply changing the value date to the desired date.

Trading Interest Rate Differentials

FX Forward Outright trading allows individuals to take advantage of interest rate differentials between two currencies. For example, when trading USDCHF as a FX Forward Outright, traders are effectively speculating on four rates: USD interest rate, CHF interest rate, USDCHF spot rate, and the USDCHF forward rate – the rate used to determine the current price for the future dated FX transaction.

Hedging Exchange Rate Risks

Companies that deal internationally can experience volatility in FX markets, which in turn can cause major uncertainties for profits and capital. FX Forward Outrights can help mitigate these risks by enabling businesses to hedge foreign currency transactions for a future date at a Swap point agreed now – thus neutralising exchange rate fluctuations.

As a Fab Investing client, you can:

  • Hedge against exchange rate fluctuations and lock in an exchange rate for future FX transactions.
  • Take advantage of interest rate differentials between two currencies.
  • Access a wide range of FX Forward Outrights on live tradable prices available throughout Fab Investing platforms.
  • Select any value date up to six months (forward/ahead).
  • Trade FX Forward Outrights from the same trade module as spot by simply changing the value date to the desired date.
Have more questions? Submit a request

0 Comments

Article is closed for comments.

Still haven't found what you're looking for? Just ask our friendly support team.