Forex Trading Explained
Bet on the movements between sets of currencies
Forex trading (also called foreign exchange or FX) isn’t about buying or selling currencies themselves. Instead, it’s about betting on a change in the relationship between two currencies – whether the exchange rate will rise or fall.
How it works
When you trade forex you are essentially betting that one currency will rise or fall against another. When you ‘buy’ GBP/USD you are hoping that sterling will strengthen against the US dollar. So if the pound was worth $1.50 and this rises to $1.52 when you sell, you will have made a profit. Conversely, if it falls to $1.48, you will make a loss.
Find out about the advantages of forex trading
Forex trading with Spread Co
Spread Co offers 38 currency ‘pairs’ you can trade with. We offer some of the lowest FX spreads in the industry – from just 0.8 points for EUR/USD.
Unlike share trading, forex markets trade round-the-clock, from 10pm on Sundays until 10pm on Fridays. With our trading platforms, you’ll always be ready to take advantage of the latest opportunities.
Find out more about how to trade forex