Which currency pairs are tradable?

Trading Forex currency pairs at a glance
The most prominent and also the most frequently traded currency pair in the world are certainly euro and US dollars (EUR/USD). In general, liquidity in currency pairs with US dollar or euro participation is highest. In addition to EUR/USD, the British pound (GBP), the Swiss Franc (CHF), the Canadian Dollar (CAD), the Australian dollar (AUD) and the Japanese Yen (JPY) are often traded in combination with euro or US dollars.


Due to their popularity, some currency pairs are named pet, such as the famous “cable” (GBP/USD) or the “Aussie” (AUD/USD).

Most popular currency pairs:


Currency rates, pips, lots and margin

Currency rates, pips, lots and margin , The currency rates are calculated and traded on up to four digits behind the comma. The so-called pips form the smallest tradable unit. For example, if the currency pair is EUR/USD at 1.2625 and the price falls to 1.2600, it is pronounced as 25 pips.

A lot is the standard unit in forex trading, whereby a lot always comprises 100,000 units of a base currency – in the case of the currency pair EUR/USD thus 100,000 euro. In addition to lots, many forex brokers also offer trading with mini lots (10,000 units of a base currency) and micro lots (1,000 units). If a broker offers the trading of micro-lots at low margin requirements, theoretically enough already a few euros to start with the forex trading.

How does forex trading work?

More and more private traders are starting out with the forex trading and there are some good reasons for this. On the one hand, the forex market can already be started with low capital usage, on the other hand, the trading volume in this highly liquid market is almost infinitely scalable. In this way, trading positions of just a few thousand euros as well as millions of euros are easily possible. However, the Forex trader must always use only a fraction of the capital traded to act on these positions.

Forex also something for beginners?


Forex also something for beginners?


Forex can also be traded by beginners. However, you should use a differentiated trading strategy as an experienced trader. If you do not have many experiences with Forex, it is difficult to bear initial losses. Nevertheless, it is clear that without a few losses there will be no profits. This theory is comparable to a company foundation. Invest one does not get into the company can also not be a sensible construction. The only decisive factor here is that the losses are already calculated and limited in advance. Good risk management is essential here.


Most Forex Beginners “practice” with a demo account. Here you trade with play money. If a conversion to a real trading account takes place, the bulk of the trader tends to panic first. All of a sudden it’s about real money, losses become real and don’t feel good at all. In order to master this panic and to keep the losses within limits, one should be able to get a suitable trade strategy right from the start. Strategies that are as simple as possible but with a high hit rate are recommended. Only those who understand their own strategy will be able to optimize their trade in the long run. If one acts according to the so-called trend sequence, one proceeds with a clear upward trend in long. With a clearly identifiable downward trend, however, in short.


Forex Trading Tips for Beginners


Compare broker and pay attention to market model
Low commissions are better in the long run than enticing deposit bonuses
Set your own loss limit
Have patience
Open a Forex account without any obligation to provide a repayment
Possible account with guaranteed stop loss
Use demo account
Split Capital
Start with low levers
Always have trading strategy
Get lots of information and learn more
In order to be successful in the long term with the forex trading, one should take into account different principles. Among other things, this includes being flexible, responding quickly to changes in the market, and implementing strategies even longer.


Useful Tools for Trading




With a demo account you can always take the first steps in forex trading and learn a lot. First market events can be analyzed and processes played through.


Leverage Risk management Tools


In any case, you should use a risk management tool in the trades. There are two variants: on the PC or browser-based programs. For optimal application, it is important that the stop loss order be defined exactly. If this is not done, the trading risk is calculated incorrectly and losses can occur. One speaks in such a case of a margin call. The trader has to reshoot after the losses, in order to continue to be active in the market.


Strategy determination


Some brokers provide analysis tools to test strategies. With them, the desired strategies are automatically tested and optimized if necessary. Recurring thinking and trading errors can be eliminated.


Don’t get too emotional


Traders sometimes tend to let their emotions win over their actions. This often makes inconsiderable wrong decisions. Especially with Forex it is important to hide the emotions as much as possible. Thus, one becomes not greedy or restless when the strategy threatens to hit losses.


Keep your Diary


Running a trading diary is recommended for both beginners and professionals alike. In him, strategies, successes and also failures can be documented and later accurately comprehended. In this way you can see which strategy was going up and what failed.

The forex trade is booming

In contrast to securities trading, exchanges in foreign exchange trading never played a particularly important role, since the substantial share of trade is already counter in the interbank market. As a consequence, most of the still existing foreign exchange markets were abolished. Trade nowadays is virtually exclusively electronic, so that the market is also accessible and highly interesting for private traders.

Forex trading is currently experiencing a boom. The figures of the Bank of England show an increase in sales of 17% in October 2010-October 2011 for the United Kingdom, the largest foreign exchange market in the world, with more than 35 percent of the world’s trading volume. The much-acclaimed triennial central bank survey recorded an increase in Forex Direct trading (spot FX) of incredible 67 percent between 2007 and 2010. Our ECN Broker comparison provides an overview of the increasingly popular ECN brokers.

There is no fixed trading place in Forex-tarding. Rather, currency tauschgeschäfte are handled via the electronic interbank market. Trading in foreign currencies is popular, among other things, because the principle is quickly being closed. Flexibility is also a criterion for this boom. We go to the forex market trading hours in one of our advisors and in one of the other sections of this page. Also, foreign exchange trading often requires only a small Mindesteinsatzkapital, for example in comparison with the trading of shares.

Here you can trade forexMarket participants in the overview

Here you can trade forex Market participants in the overview


After the question “What is Forex?” has now been clarified, we can look at the market participants in foreign exchange trading. Who actually cares for these huge trading transactions per day? The most important players in the forex market are certainly large credit institutions, but also industrial companies, trading companies as well as private currency traders ensure a highly liquid market. However, central banks, whose monetary policy measures can have a strong influence on exchange rates between currencies, also exert a significant influence on the foreign exchange market.

Overview of the money market.
In the forex market, the mark participants usually act directly and counter with each other. Market participants include banks, governments, business enterprises, insurance companies and also private traders, which contribute to a high liquidity of the currency market.

Are there special forex trading times that are to be considered?

It has already been mentioned that Forex trading is also offered for many traders due to its temporal flexibility. Unlike the trading hours of the stock market, which usually only reach the evening, forex participants can trade almost around the clock. From Sunday evening 22.00 until late Friday night at 23.00 hours can be traded with foreign exchange without interruption. This circumstance is due, among other things, to the global time shift and the-decentralised trade, which is also linked to no opening hours of presence exchanges due to electronic trading systems. In principle, however, trading on weekends would also be possible. However, since at that time many institutional market participants, such as banks, insurance companies or trading companies, ceased to trade, much of the otherwise available market volume was missing.

Since trading in foreign exchange takes place directly between all market participants worldwide, currency exchange is to be carried out quasi without any time interruptions. While currency trading in Australia and New Zealand begins on Sunday evening, the forex market in the US has just closed. Trading in foreign currencies continues over all time zones and ends on Friday night at 23.00

The foreign exchange market is the largest financial market in the world



The foreign exchange market is the largest financial market in the world

The foreign exchange market is also referred to as the currency market, foreign market or short forex, and with a daily turnover of more than $4 trillion is the world’s largest financial market.
Development of the average turnover per trading day on the worldwide foreign exchange market from 1995 to 2013 (in billion US dollars).

Foreign exchange market from 1995 to 2013
It is a global market in which foreign exchange trading mainly takes place directly between the market participants (over-the-counter or OTC). In accordance with foreign exchange trading, the trading partners carry out the definition of barter transactions with international currencies. A simple Forex trading statement would designate the forex trade as buying and selling the currency of a country against the currency of another country.

Currencies are always traded in pairs, such as euro against British pound, US dollar against Japanese yen, US dollar against euro, etc. The most traded currency pair is EUR/USD.

The exchange rate of supply and demand is pending, with high demand for a certain currency also increasing its price. The demand is determined, among other things, by the economic and political situation of a state, the level of interest rates in a country or also by tourism.

A Forex trader achieves returns if the price of a currency is the same as that of the other currency as expected. For example, if he expects the euro rate to rise in comparison with the dollar, he will be in a long position. He uses a short trade when he assumes that the euro is experiencing a price loss against the US dollar. This enables a trader to generate profits both from falling and rising price developments.

In forex trading, so-called leverage can also be used to trade. This means that a higher trading volume can be moved with a minimum capital commitment, which is deposited as collateral at the corresponding forex broker. As a result, income is also possible for a multiple of the capital used – but also high losses. With a lever of 1:100 it is also sufficient to deposit only one percent as margin. Up to 100 percent can now be achieved, but also losses.

That’s how the trade works.
If the capital paid in the trading account is not sufficient to cover the loss, the broker requests the trader to rejoin the corresponding funds by means of a margin call. Further information on the forex lever and the Forex function is available on our advice pages.

Overall, the currency market is an extremely liquid market. It sums up to $5 trillion a day. The strong price fluctuations and levers offer high yield opportunities and, on the other hand, significant loss risks that can exceed the capital commitment. The various exchange rates are pending on economic, political and social factors.

What is Forex trading?

What is Forex and what is behind Forex trading exactly?

The term forex is now also expected to be a term for every beginner in trading. What is meant by this, however, and what is hidden behind it, may still not be the same in every detail. We want to take this into account and explain in this guide what Forex means exactly and at the same time want to consider what is actually hidden behind the forex trading and how it works. Trade is always at risk. Traders can lose their invested capital.



The forex market is one of the largest and most liquid financial markets.
Currency exchange takes place directly among market participants.
The respective exchange rate depends on the supply and demand of a currency.
The trader can speculate on falling as well as on rising rates against the other currency.
With the use of leverage, high trading volumes can be traded with low capital usage.
Strong price fluctuations and the use of leverage are high yield opportunities, but sometimes also enormous loss risks beyond the use of capital.
Flexible trading hours and low stakes make FX trading attractive for private investors as well.