The foreign exchange (FX) market, also known as the forex market, is the largest and most liquid financial market in the world.
It is where currencies are traded and exchanged, with over $US7 trillion changing hands every day.
Traditionally reserved for institutional traders, investment banks, and governments, it is now possible for anyone with an internet-enabled tablet, phone or laptop to participate as an active and informed trader in this potentially lucrative market, all thanks to advances in trading technology, democratisation of institutional-grade market research, and platform providers such as Admirals.
To give you an idea of the sheer size and scale of the FX market, it is about 30 times the size of the US stock and bond markets combined.
As can be seen from the infographic below, even if we mash up the value of the world’s major stock markets into a single unified daily figure, the FX market would still be larger in comparison, and substantially so.
One of the key differences of trading forex and contracts-for-difference (CFDs) over stock market investing is the availability of leverage.
Leverage allows traders to control a larger position (size of the trade) with a relatively smaller amount of capital.
In Australia, leverage can be as high as 1:30, meaning that for every $1, a trader can control up to $30 of a trade, be it a Microsoft or BHP share CFD, Gold, or the AUD/USD currency pair.
This is not possible through regular stock market investing.
Another major difference FX and CFD trading offers over conventional stock investing is the ability to trade both ways—that is, traders can trade both rising markets (long) as well as falling markets (short).
This means that investors can potentially take profit in not just bullish market conditions but also in bearish market conditions.
The ability to long or short may, therefore, presents traders and investors with additional potential market opportunities to participate in.
For those interested in FX and CFD trading, it is important to understand the fundamental and technical basics of the trading mechanisms and of the market itself.
Admiral Australia offers a comprehensive workshop-style seminar to help traders understand the intricacies of the forex market.
It’s a great place for aspiring traders to start their FX and CFD trading journey and a perfect way for seasoned traders to level up their ‘trading game’.
>> Learn more about Admirals’ seminar program
The 90-minute “live on-stage” presentation is designed to teach participants how to identify a favourable trade set-up. Specifically, here’s what attendees of the educational event can expect to walk away with:
How to seek out your preferred trading opportunities.
Introduction to the "Crouching Tiger" trade set-up formation.
Understanding of how to use entry and exit signals.
Effective risk management and position sizing.
The psychology and mindset of a trader.
How to use CFD trading to offset the effects of inflation in 2023.
Participants will also have the chance to opt-in to Admirals Australia Professional Learning and Engagement Recognition Program (ProLERP) for the opportunity to earn formal recognition of their learning in the form of an electronic badge and digital certificate (compatible with LinkedIn).
For those who prefer self-paced learning, there is a variety of online resources out there to help you get started in the FX and CFD markets.
It may be worthwhile visiting the Admirals website—which offers a host of educational articles, YouTube videos, trading tools, and market analysis. There is also the option to test drive a trading platform on a DEMO account—allowing users to practise trading in a risk-free environment with virtual capital.
If you’re ready to learn how to trade the $7 trillion-a-day FX market, register to attend the Admirals seminar program. Early registrations are encouraged as seating is strictly limited by venue capacity.
>> Registrations for Sydney, Perth and Melbourne are now open
The Urban Developer is proud to partner with Admiral Markets to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.
