Forex



Instruments Contract Size(=1手) Min Trade Size Max Trade Size Digits
AUD/CAD 100,000 units 0.01 lot 100 lots 5
AUD/CHF 100,000 units 0.01 lot 100 lots 5
AUD/JPY 100,000 units 0.01 lot 100 lots 3
AUD/NZD 100,000 units 0.01 lot 100 lots 5
AUD/SGD 100,000 units 0.01 lot 100 lots 5
AUD/USD 100,000 units 0.01 lot 100 lots 5
CAD/CHF 100,000 units 0.01 lot 100 lots 5
CAD/JPY 100,000 units 0.01 lot 100 lots 3
CHF/JPY 100,000 units 0.01 lot 100 lots 3
CHF/SGD 100,000 units 0.01 lot 100 lots 5
EUR/AUD 100,000 units 0.01 lot 100 lots 5
EUR/CAD 100,000 units 0.01 lot 100 lots 5
EUR/CHF 100,000 units 0.01 lot 100 lots 5
EUR/GBP 100,000 units 0.01 lot 100 lots 5
EUR/JPY 100,000 units 0.01 lot 100 lots 3
EUR/NOK 100,000 units 0.01 lot 100 lots 5
EUR/NZD 100,000 units 0.01 lot 100 lots 5
EUR/PLN 100,000 units 0.01 lot 100 lots 5
EUR/SEK 100,000 units 0.01 lot 100 lots 5
EUR/SGD 100,000 units 0.01 lot 100 lots 5
EUR/TRY 100,000 units 0.01 lot 100 lots 5
EUR/USD 100,000 units 0.01 lot 100 lots 5
EUR/ZAR 100,000 units 0.01 lot 100 lots 5
GBP/AUD 100,000 units 0.01 lot 100 lots 5
GBP/CAD 100,000 units 0.01 lot 100 lots 5
GBP/CHF 100,000 units 0.01 lot 100 lots 5
GBP/JPY 100,000 units 0.01 lot 100 lots 3
GBP/NOK 100,000 units 0.01 lot 100 lots 5
GBP/NZD 100,000 units 0.01 lot 100 lots 5
GBP/SEK 100,000 units 0.01 lot 100 lots 5
GBP/SGD 100,000 units 0.01 lot 100 lots 5
GBP/USD 100,000 units 0.01 lot 100 lots 5
NOK/JPY 100,000 units 0.01 lot 100 lots 5
NOK/SEK 100,000 units 0.01 lot 100 lots 5
NZD/CAD 100,000 units 0.01 lot 100 lots 5
NZD/CHF 100,000 units 0.01 lot 100 lots 5
NZD/JPY 100,000 units 0.01 lot 100 lots 3
NZD/USD 100,000 units 0.01 lot 100 lots 5
SEK/JPY 100,000 units 0.01 lot 100 lots 3
SGD/JPY 100,000 units 0.01 lot 100 lots 3
USD/CAD 100,000 units 0.01 lot 100 lots 5
USD/CHF 100,000 units 0.01 lot 100 lots 5
USD/CNH 100,000 units 0.01 lot 100 lots 5
USD/HKD 100,000 units 0.01 lot 100 lots 5
USD/JPY 100,000 units 0.01 lot 100 lots 3
USD/NOK 100,000 units 0.01 lot 100 lots 5
USD/PLN 100,000 units 0.01 lot 100 lots 5
USD/RUB 100,000 units 0.01 lot 100 lots 5
USD/SEK 100,000 units 0.01 lot 100 lots 5
USD/SGD 100,000 units 0.01 lot 100 lots 5
USD/TRY 100,000 units 0.01 lot 100 lots 5
USD/ZAR 100,000 units 0.01 lot 100 lots 5
ZAR/JPY 100,000 units 0.01 lot 100 lots 3

Forex Trading Hours


Forex instruments have streaming prices and trading functionality available continuously as follows:

Pricing & Trading begin each Sunday at 22:05 GMT+1. 
Pricing & Trading end each Friday at 21:55 GMT+1.
There is a daily system reset from 22:00 until 22:05 GMT+1 during which pricing and trading is not available.

* If you leave an open position for the next trading day, you pay or you obtain the certain amount, calculated on the basis of interest rates difference of two currencies in currency pair. This operation is called "swap." In MT4 platform, "swap" is automatically converted into your deposit currency. The operation is conducted at 00:00 (GMT+1 time zone, please note DST may apply) and can take several minutes. From Wednesday to Thursday swap is charged for three days.

** Minimum level for placing Stop Loss and Take Profit orders from a current market price.

About Forex Trading


Forex trading, currency trading, or FX trading, describes the currency exchange market, which is the global, decentralized marketplace where individuals, companies and financial institutions exchange currencies at floating rates.

The current floating exchange rate system was adopted in the 1970s.  . Prior to that a monetary management system called the Bretton Woods Agreement was in existence, in which the exchange prices of currencies against each other were tied and correlated to the reserves of gold.

Forex Trading Marketplace


Today’s forex trading marketplace, is the world’s largest and most liquid market due to a number of factors which include ease of performing transactions over the internet, ease of international communication and modern transportation.  These factors have contributed to a growing forex trading marketplace.

Online Forex Trading


One of the fastest growing parts of the forex trading marketplace are retail foreign exchange traders (individuals) who participate in forex trading online, including to seek to profit from currency fluctuations (market changes) hedge currency risk.  This sector participates in the forex trading marketplace using a broker (like SP markets) or using a bank. In the case of broker you trade currencies through derivative contracts, which change in value based on the value of the underlying currencies, being a "base” currency (often USD) and a second currency (called the "quote” currency).  

Participating in the forex trading via a broker like SP Markets means that you have access to real-time pricing of the forex market.  You are quoted buy and sell prices   on our platform. You have the freedom to decide at which price to buy or sell, and vice versa, and you can execute a transaction at any time the relevant markets are open.

The value of the derivatives we offer are determined by fluctuations in the real time exchange rate in the underlying currency pairs listed above, such as AUD/CAD and NZD/JPY.  We provide forex trading in more than fifty underlying currency pairs.  

You enter into a long position (also referred to as ‘buy’) when you expect the value of underlying currency pair will go up. Conversely, if you expect the value of the underlying currency pair to go down you will enter into a short position (also referred to as ‘sell’). 

For example, you enter into a long position of 30 lots of USD/JPY. 1 lot contains 100,000 units of the underlying currency pair.  The price of USD/JPY was quoted as 110.824 then increased to 111.287. If you close out your position at that price you would earn $12,481.24 as profit (less any other costs and expenses specified). The gain is calculated as follows: (111.287 - 110.824)x100,000x30. It is then converted into deposit currency (USD) based on real time exchange rate. 

Forex prices are only quoted, and you can only trade, during the open market hours of the relevant exchange on which the underlying currency pair is traded. 

Q&A


Forex trading, also known as currency trading or FX trading, refers to buying a particular currency while selling another in exchange. Trading currencies always involves exchanging one currency for another.  On our platform we support forex trading through entry into derivative contracts that provide exposure to changes the exchange rates of underlying currency pairs.  
Forex trading is in essence trading currencies for one another.  In the case of SP Markets, our clients enter into trades based on underlying currency pairs (our clients do not trade the actual currencies) and, in effect, sell one currency for another at a current market rate.

FX trading is performed on currency pairs, in which the first currency is called the "base” currency, while the second currency is called the "quote” currency.

For example, the quotation GBP/USD 1.28170 is the price of the sterling expressed in US dollars, which means that 1 GBP equals 1.28170 US dollars.
There are a large number of factors that  influence the prices in forex trading. However, there are 6 major factors which contribute the most and are usually the main driving forces for forex trading price fluctuation:

1. Differentials in inflation
2. Differentials in interest rates
3. Current account deficits
4. Public debt
5. Terms of trade
6. Political and economic stability

Currencies are traded against one another. So when one falls, another one rises, as the price of any currency is always stated against another currency.
SP Markets operates an online trading platform, which allows clients to view, analyse and trade currencies, or other asset classes.  SP Markets supports trading through derivative contracts entered into with clients.  

Each SP markets client is provided access to our trading platform (i.e. software) which is directly connected to global market price feeds and allows them to perform transactions without the help of a third party.
Forex trading market participants can fall in any of the following categories:

1. Travellers or overseas consumers who exchange money to travel overseas or purchase goods from overseas.

2. Businesses that purchase raw materials or goods from overseas and need to exchange their local currency to the currency of the country of the seller.

3. Investors or speculators who exchange currencies, which either require a foreign currency, to perform trading in equities or other asset classes from overseas or either are trading currencies with the aim of making a profit from market changes.

4. Banking institutions that exchange money to service their clients or to lend money to overseas clients.

5. Governments or central banks that either buy or sell currencies and try to adjust financial imbalances, or adjust economic conditions.
As a retail foreign exchange trader, the most important factors that affect your trading is trade execution quality, speed and spreads. The one affects the other.

A spread is the difference between the bid and the ask price of a currency pair (buy or sell price), and so to make it even easier it is the price at which your broker or bank is willing to sell or buy your requested trade order. Spreads, however, only matter with the correct execution.

In the forex trading marketplace, when we refer to execution we mean the speed at which a foreign exchange trader can actually buy or sell what they see on their screen or what they are quoted as bid/ask price over the phone. A good price makes no sense if your bank or broker cannot fill your order fast enough to get that bid/ask price.
In forex trading, some currency pairs are called "majors” (major pairs). This category includes the most traded currency pairs and they always include the USD on one side.

Major pairs include: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD
In forex trading, "minor” currency pairs or crosses are all currency pairs that do not include the USD on one side.

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