What is Forex and how does Forex trading work?Forex trading (also commonly known as Foreign Exchange, currency or FX trading) is a global market for trading one country’s currency in exchange for another country's currency. It serves as the backbone of international trade and investment: imports and exports of goods and services; financial transactions by governments, economic institutions or individuals; global tourism and travel – all these require the use of capital in the form of swapping one currency for a certain amount of another currency.
When trading Forex CFDs, you are essentially speculating on the price changes in their exchange rate. For example, in the EUR/USD pair the value of one Euro (EUR) is determined in comparison to the US dollar (USD), and in the GBP/JPY pair the value of one British pound sterling (GBP) is quoted against the Japanese yen (JPY).
If you think the exchange rate will rise you can open a ‘Buy’ position. Conversely, if you think the exchange rate will fall you can open a ‘Sell’ position.
To see a full list of currency pairs offered by Plus500, click here.
How do you start trading Forex CFDs?To start trading commodities with Plus500, simply:
- Sign up / Log in to your account.
- Search for the instrument you want to trade.
- Click the 'Buy' or 'Sell' button depending on the direction you think the commodity will move.
- Open a trade.