Advantages of Forex Trading with ZenithFX
50+ majors, crosses, and exotics currency pairs
24 hours a day, 5 days a week
10
Trading Platforms
Trade on the world's most liquid market.
Tight spreads and NO re-quotes
Trade without any additional fees
10 trading platforms, over 1000 instruments, and 7 asset classes.
At ZenithFX, you can trade Forex, individual stocks, commodities, energies, precious metals, equity, and thematic indices.
About Forex Trading
The terms “forex trading,” “currency trading,” and “FX trading,” which can also be shortened, are used to refer to the terms used to describe the modern currency exchange market, which is the global, decentralized marketplace where people, businesses, and financial institutions exchange currencies for one another at floating rates.
Following World War II, the present floating rates system was implemented and has remained in place ever since. The Bretton Woods Agreement was a monetary management system that existed before the current forex trading rates system. Under this system, the exchange prices of currencies were linked and correlated to the gold reserves held by the two countries that were the originators of the actual currencies related to a transaction.
Forex Trading Marketplace
Today’s forex trading market is the biggest and most liquid in the world because of a number of factors that have made the world a smaller place, such as the ease with which transactions can be completed over the internet, the advancement of travel, the ease with which communication can be conducted internationally, and the availability of modern transportation.
People, commodities, and services may all travel more quickly and readily as a result of our world becoming smaller and more interconnected. This implies that for this to occur, there must be a requirement for currencies to be traded against one another. The result of all these variables is a burgeoning forex trading industry that is only going to get bigger and more responsive, liquid, and dynamic.
Online Forex Trading
Retail foreign exchange traders, or individuals, are market participants in the foreign exchange market. They are a rapidly expanding segment of the overall market participant pool and engage in online forex trading primarily for speculative purposes, with the ultimate goal of profiting from currency fluctuations and hedging against unwelcome currency risk.
This market group trades foreign exchange through a bank or a broker, such as ZenithFX. In this scenario, the retail client will be given a trading account funded in a base currency (typically the local currency of the client’s home region) by the bank or broker, and they will be able to buy and sell currencies both online and over the phone in an attempt to make money.
Trading Forex with a Broker
When a client uses a broker such as ZenithFX to trade forex, they have access to real-time market pricing and can use an online trading platform to get buy and sell prices for various products. The customer is free to choose the price at which they want to purchase or sell, and vice versa. They can also carry out a transaction whenever they’d like.
FAQ
Buying one currency and selling another in exchange is known as forex trading, sometimes referred to as currency trading or FX trading. Exchanging one currency for another is a necessary part of currency trading.
The final goal can take several forms and be any of the following, without being restricted to them:
1. Converting one currency (USD) to another (EUR) for travel;
2. Converting one currency (USD) to another (EUR) for trading;
3. Converting one currency (USD) to another (EUR) for speculative purposes, with the intention of making a profit.
The forex trading market, which sees over $5 trillion in daily transactions, is currently the most turbulent and liquid in the world due to all of the aforementioned factors, among others.
Trading currencies for one another is basically what forex trading entails. As a result, a client of ZenithFX sells one currency for another at the going rate.
Open an account, hold currency A, and then exchange currency A for currency B, either for a long-term or short-term trade, with the final goal adjusting correspondingly, in order to be able to trade.
Since currency pairs—that is, the quotation of one currency unit's relative value against another—are the basis of foreign exchange trading, the base currency is the first currency and the quote currency is the second.
For instance, the price of the euro stated in US dollars is EUR/USD 1.2345, meaning that one euro is equivalent to 1.2345 US dollars.
Currency trading between the main financial capitals of London, New York, Tokyo, Zürich, Frankfurt, Paris, Sydney, Singapore, and Hong Kong is available 24 hours a day, from 22.00 GMT on Sunday to 22.00 GMT on Friday.
Although there are countless variables that affect and contribute to forex trading prices (also known as currency rates) on a daily basis, it is probably safe to state that there are six main variables that account for the majority of these variations and serve as the primary catalysts for price fluctuations in the market:
1. Inflation differentials
2. Interest rate disparities
3. Deficits in current accounts
4. Public Debt
5. Trade Conditions
6. Stability in politics and the economy
Remembering that currencies are traded against one another will help you to fully understand the aforementioned six elements. Since the value of any currency is always expressed in relation to another, one rises when another falls.
Each ZenithFX client is given access to forex trading software, which is an online trading platform that lets users observe, analyze, and trade currencies or other asset classes.
To put it simply, every ZenithFX client has access to a trading platform, or software, that is directly linked to the worldwide market price feed and enables them to do deals on their own without requiring assistance from a third party.
Participants in the forex trading market can belong to any of the following categories:
1. Individuals who exchange money to travel abroad or buy items from other countries.
2. Companies that buy products or raw materials from abroad and have to convert their local currency into the seller's country's currency.
3. Traders or investors who swap currencies in order to profit from fluctuations in the market. They may do this because they need a foreign currency to trade stocks or other asset classes from abroad.
4. Banks that deal in currency exchange in order to service their customers or lend money to customers abroad.
5. Governments or central banks that attempt to correct financial imbalances or alter economic conditions by buying or selling currencies.
The quality, speed, and spreads of deal execution are the three most significant variables that impact a retail foreign exchange trader's trading. One influences the other.
To make things even simpler, a spread is the price at which your broker or bank is willing to sell or buy the trade order you have requested. A spread is the difference between the bid and ask prices of a currency pair, also known as the buy or sell price. But spreads are only useful when used correctly.
When we talk about execution in the context of the forex market, we're talking about how quickly a trader can actually buy or sell what they see on their screen or what they get as a bid/ask price over the phone. If your bank or broker is unable to process your order quickly enough to obtain the bid/ask price, then a good pricing is meaningless.
Certain currency pairs are referred to as majors (major pairs) in forex trading. The most traded currency pairs are in this category, and they always have the USD on one side.
The following are major pairs: AUD/USD, NZD/USD, GBP/USD, USD/CHF, EUR/USD, USD/JPY, and USD/CAD.
Any currency pair in forex trading that does not have the USD on one side is referred to as a minor currency pair or cross.
Currency pairs that feature a major currency paired with the currency of a smaller or emerging economy are referred to as exotic pairs, or exotics, in forex trading. When it comes to trading, exotic pairs are typically less active than majors. They are typically less liquid and more volatile.
