Forex trading refers to buying a currency while selling another (by traders on the forex market). Imagine a situation where the U.S. dollar is expected to weaken in value relative to the euro. A forex trader in this situation will sell dollars and buy euros theoretically. If the euro strengthens to certain extent, the trader can sell euros and buy back more dollars, making a profit. This is similar to stock trading. Stock traders will buy a stock if they think its price will rise in the future and sell the same after the price rises. But the big difference with forex is that the traders can trade up or down just as easily. In addition to buying, the traders can also selling.

The forex market is influenced by many different factors, such as political and economic stability, monetary policy, forex intervention and natural disasters (including earthquakes, tsunamis…) Due to these factors, the forex trading becomes very interesting and attractive. A highly liquid market allows rapid changes of prices, and a currency’s value fluctuates as its supply and demand fluctuates.

•  The increased supply or decreased demand for a currency can cause the value of that currency to fall.

•   The decreased supply or increased demand for a currency can cause the value of that currency to fall.

The forex market is open 24/5, without a break

Forex traders can trade in any corner of the world for 24 hours a day, 5 days a week.

Double opportunities from two-way trading (up and down)

For the forex trading, there is no difference between the bull and bear markets. The forex trading offers traders the opportunities in both bull and bear markets. In addition to “buy low, sell high”, you can sell one currency when you think its exchange rate will fall, and then buy it back at a low rate. As long as you make the right decision, you can make money.

Low Trading Cost

Most forex dealers do not charge commission, but make their money through the bid-ask spread (the difference between the bid and ask prices). The spread offered by TREX GLOBAL is lower than most of those offered by its rivals.Click here to see details.

Leverage up to 1:500

Leverage enables traders to trade larger positions than would otherwise be possible based on their actual account balance, improving the fund utilization. The leverages available for different products are different. The highest leverage for forex trade on margin is up to 1:500. That is, a trader can trade positions worth 500,000 dollars with only 1,000 dollars in their account. It should be noted that risk management is very important in forex trading. High leverage can increase your profits, but can bring significant losses as well.

Transparent, Impartial and Unmanipulated Transaction

Forex traders include governments, banks, traders and individual investors all over the world, and the average daily trading volume of the forex market exceed $5 trillion. No country or individual can manipulate such a large trading volume at will. In addition, the trends and the exchange rate of the forex market may change with events occurring from time to time. There is no room for backstage operations in the forex market.

Initial Margin

Initial Margin refers to an amount of money required to be paid by a trader when placing an order.

Day Trade Margin and Weekend Margin

Day Trade Margin refers to the margin amount the customer must have during the trading hours. If they do not, they will be required to offset the position.

Weekend Margin refers to the margin amount the customer must have to hold the position overnight. If they do not, they will be required to offset the position.

Spread

A spread refers to the difference between the bid and ask prices. For traders, the smaller the spread, the lower the cost to trade.

In the long run, the spread can greatly affect the general profits or losses of day traders, but have little impact on that of the mid-/long-term traders.

There are two prices for the forex trading: the buy price, called “BID”; and the sell price, called “ASK”. A spread refers to the difference between the bid and ask prices.

The calculation mode is provided as follows:

Gross profit or loss = (ASK-Bid) x contract unit x traded lots + overnight interest (if any) - commission (if any).