Global forex trading with tight spreads

To trade currency pairs, you first need to understand that every forex transaction involves buying one currency and selling another at the same time, represented as a currency pair, such as EUR/USD (Euro vs US Dollar). The goal of forex trading is to profit from fluctuations in exchange rates between the two currencies. The forex market moves based on several key factors, including geopolitical events, economic data and indicators, central bank policies, market sentiment and confidence.

Each currency has an official three-letter code, such as EUR = Euro, USD = US Dollar. In a pair like EUR/USD, EUR is the base currency and USD is the quote currency. The price tells you how many US dollars are needed to buy one euro. One of the main advantages of Forex is that it’s open 24 hours a day, five days a week, thanks to multiple global financial centres operating across different time zones, offering traders continuous opportunities around the clock.

With Equiti, you can trade over 60 currency pairs, including major, minor and exotic FX pairs. You can also trade EUR/USD with spreads starting from 0.0 pips and leverage up to 1:500 through a Premier account.

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The forex market operates 24 hours a day, starting on Sunday at 5pm New York time and closing on Friday at 5pm. This continuous schedule is made possible by major financial hubs located across various time zones worldwide.

Leverage allows you to trade using borrowed funds, enabling you to open larger positions than your actual account balance, amplifying both potential profits and losses. Equiti provides leverage through a margin-based system, allowing you to access the market with a smaller initial deposit. For example, with a 1:20 leverage ratio, every $10 of your own funds lets you trade with $200 in market exposure.

Caution: While leverage can increase your profit potential, it also magnifies losses if the market moves against you. Always understand your risk tolerance and use risk management tools such as stop-loss orders to protect your capital.

A pip (short for percentage in point) is a very small unit used to measure changes in the price of a currency pair. It represents the smallest price movement a currency pair can make, either in the quoted or base currency. For example, if EUR/USD moves from 1.1000 to 1.1050, the price has risen by 50 pips. In most USD-based currency pairs, one pip equals 0.0001. There’s also a fractional pip (pipette), which equals 1/10 of a pip, meaning 10 pipettes = 1 pip.

A swap is a fee or interest charged when an FX trading position is left open overnight. It represents the interest rate differential between the two currencies in a traded pair.

In forex trading, the spread is the difference between the buy (ask) price and the sell (bid) price of a currency pair, measured in pips. For example: If the bid price for EUR/USD is 1.55310 and the ask price is 1.55313, the spread equals 0.3 pips.