What is Foreign Exchange?
Foreign exchange, more commonly known as Forex or FX, relates to buying and selling currencies with the purpose of making profit off the changes in their value. As the biggest market in the world by far, larger than the stock market or any other, there is high liquidity in the forex market. Therefore, the forex market attracts many traders, beginners and experienced alike.
The Forex Market
With approximately $4 trillion USD traded in the market every day, the forex market has the highest liquidity in the world. Basically, this means that one can buy almost any currency he wishes in high volumes while the market is open. The forex market is open 24 hours, 5 days a week – Monday to Friday. Trading begins with the opening of the market in Australia, Asia, Europe to follow and then the USA until the markets close.
The forex market start time during the summer is on Sunday at 9:00pm GMT, and ends at 9:00pm GMT on Friday. In the winter it’s 10:00pm-10:00pm accordingly. That results with currencies being traded at all times, day or night. Unlike some other instruments, where a downfall of the market would leave traders with untradeable assets, the forex market can always find a buyer or a seller.
Why Trade Forex with ETIHAD TRADE?
When trading forex, as well as any other instrument, you must be able to trade with confidence. Profits can never be guaranteed, and any type of trading has its advantages and disadvantages, as well as the risk of losing funds. At Etihad trade we are committed to a set of values which define our relationship with our customers. As such, we provide the best trading experience possible, offering top notch 24/5 multilingual customer service and the most advanced and user-friendly trading platforms.
You can also use our teaching materials in the education tab on out site. You will find there a wide collection of articles, video tutorials and many more tools that will assist you in every step of the way. We know trading might be a bit overwhelming and even scary at times, but we do all we can to make sure you are fully prepared to begin trading in the real world.
These tools and many others allow you to trade peacefully and know that Etihad trade has your back. Everything we provide is on the highest possible level, and we go to great measures to constantly innovate and improve them for you.
Join Etihad trade today and enjoy the best trading experience you can get!
How to Trade Forex?
FX trading may seem daunting, but let us simplify it for you as much as possible and explain why over USD5 trillion flows through the market daily.
How forex trading works
Let’s start with the basics. Put simply, forex trading is the act of buying one currency (the base currency) and selling another currency (the quote currency). You then have to attempt to predict whether the base currency will strengthen or weaken against the quote currency.
If the base currency strengthens, the market will rise (or appreciate), and if the base currency weakens then the market will fall (or depreciate). If you believe the market will rise, then you would go long (buy), and if you believe the market will fall, you would go short (sell).
The subsequent movement of the currency pair within the market, following your decision of going long or short, will determine whether you make a profit or loss on the trade.
In order to trade forex, you have to trade two individual currencies against each other (for example EUR/USD – the euro vs US dollar). In this pairing, EUR is known as the base currency, and USD as the quote currency.
You would speculate on whether the base currency will strengthen (appreciate) or weaken (depreciate) against the quote currency. If you think the base currency will appreciate, then you should go long (buy), and if you think the base currency will depreciate, you should go short (sell).
After choosing whether to go long or short, the currencies will fluctuate based on multiple factors until you decide to close the position. This will determine the profit or loss you make on the trade.
Influencing factors on the forex market
There’s a number of reasons why forex pairs move so much (this movement is known in the industry as volatility). Here’s a few volatility-causing factors you should be aware of when forex trading:
Financial news events
Large financial news events such as budgets and interest and unemployment rate announcements can significantly increase volatility in the markets. It can be more apprent in the local currencies where the announcement is being made.
Political economic stability
The welfare of a country or nation can have a major impact on the performance of a currency. If a country is struggling economically, it’s extremely likely its associated currency will be too.
As horrible as they are, natural disasters can affect a currency’s wellbeing as well as people’s lives. Should an earthquake or tsunami occur, expect some sort of volatility to be generated in the currency associated with that region.
Forex Swap Rates
Browse through the details below on our FX swap rates. Find out what they are and how and when they are calculated with examples.
What is a Forex Swap
What are swap rates?
Swap rates are the interest rate differentials embedded in currency trades.
To put it more simply, consider how a forex trade works: you borrow one currency to buy another. For instance, if you are buying EUR/USD, you are borrowing US dollars and buying euros with the proceeds. In doing so, you are paying interest on the US dollars you borrow, but earning interest on the euros you bought.
Where can I find your swap rates?
Our swap rates are visible on all our platforms, by following these simple steps:
Click ‘View’ along the top menu
Select which currency pair you want to see the swaps for, and click ‘Properties’
You can now see the long and short swap rates in the pop-up window
How do you calculate a swap rate?
Swap debits/credits are calculated as follows:
Current long/short rate * number of lots = swap debit/credit in second currency
Trading information: Market range
Etihad trade is proud to offer customers a wide range of markets, including currencies, stocks, indices, commodities and exchange traded funds pairs.
With a wide choice of more than 200 financial tool available for trading on different trading platforms, Etihad Trade committed to offer people trading and investments according to their interests and needs in the market.
Etihad Trade provides stocks trading through contracts in the most important stock markets in the world and provides a direct way from the PC, tablet device and smartphone.
Start trading American and European stocks today.
Since created in 2008, Bitcoin has become the leading currency to a range of non- centralized digital currencies.
What makes Bitcoin the focus of investors’ interest is in particular it’s largely price variations.
With Etihad Trade you can have Bitcoin trading.
Gold and metals trading.
Gold is a significant trading commodity, and often used as a safe investment in times of market turmoil. With Etihad Trade, you have the opportunity to trade gold contracts. In addition to gold trading, you can also trade silver, platinum, palladium and copper.
Oil trading and energy derivatives
Oil trading and energy derivatives is a dynamic market in particular, and have a significant impact on the global economy. Etihad Trade provides crude oil trading, Brent oil, natural gas, heating oil and gasoline through the oil futures and derivatives of energy.
Exchange Traded Funds
Exchange Traded Funds offer traders a very convenient way to speculate on the industrial sectors and different regions and markets. Etihad Trade offers a group of more than 25 Traded Fund to trade as contracts, giving traders’ the ability to trade for long or short duration. Learn more about Exchange Traded Funds here.
During the financial crisis that occurred recently, government debt, bonds, and Treasuries popped into existence prominently.
With Etihad Trade, you can follow the markets versus government bonds.
Stock indices are among the most popular traded instruments on the internet. In addition, trading contract for differences (CFD) stock indexes requires you to think about the economic dimension and its potential impact on one of the indicators, such as the FTSE 100, which reflects the collective value of the companies, such as Barclays, Unilever and others.
Litecoin currency has emerged as a real competitor to Bitcoin currency, in order to promote stability and effectiveness.
With Etihad Trade, you can trade Litecoin contracts for a long or short term with immediate implementation.
Diverse your trading portfolio through trading of agricultural commodities. Maize, soybeans, wheat, coffee, sugar and cotton are all part of our daily lives and are traded continuously in global markets.
You can now trade in all major agricultural commodity markets for long or short term through CFD trading on the site www.etihadtrade.com .