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Basic Knowledge of Forex

Basic knowledge

Trade in a new market as if learning a new kind of language. You will find much easier when you understand basic knowledge. Before you learn how to trade on our platform, start with the Forex basic knowledge.

What is Forex?

Forex is also known as ‘foreign exchange’, ‘Forex’ or ‘FX’.Forex trading is the simultaneous exchange, buying and selling, of one currency for another primarily for speculation purposes. Forex trade is is similar to stock exchange. If a stock investor thinks that the price of certain stock is expected to drop in the future, then he or she will sell out the stock. Similarly, if a forex investor expects the rate of certain currency pair will rise in the future, he will buy in more of this currency pair, but if he or she expects the rate of such currency pair will drop in the future, then he will sell out the currency pair.

Forex quotes

Forex quotes consist of the base currency (left-hand side of the backslash) and the quote currency (right-hand side). The base currency is the currency what you are willing to buy using the quote currency, and the rate you see is how much quote currency is needed to buy one unit of the base currency. For example, EUR/USD 1.19418 presents 1 euro is equivalent to 1.19418 US dollars.

A lot

A lot is a standardized quantity of the instrument you are trading. In forex, one lot is 100,000 units of a particular currency.ATFX offers the minimum volume is 0.01 lot, which is 1,000 units of a particular currency.

Pip

Pip stands for Percentage in Point and it is the smallest price change that can be seen in an exchange rate. In most cases currency pairs are priced to four decimal points and the smallest change can be seen in the last decimal. For example, EUR/USD rising from 1.4022 to 1.4027 means euro increases 5 pips.

Leverage and Margin

As mentioned above, all the trades are executed with “borrowed money” and here “leverage” is applied. Leverage is expressed in ratio form, so if it is 1:100 for example, a trader’s buying power is magnified 100 times and is offered by brokers to maximize traders’ buying power by giving them the ability to deposit a small amount of funds and trade larger volumes, meanwhile it increases the loss risk. Leverage trading is not suitable for all the investors. Margin refers to the amount of money needed in your account to maintain an open position. Margin is not a charge or cost fee but a deposit out of equity.

Why Forex

Low cost of investment

ATFX will not collect any fees from the investors but only the spreads from the clients’ trade. For example, the spread of EUR/USD 1.19225/1.19243 is 1.8 pips.

Two-way transactions

The investors has options to trade in forex market any time available for them for Forex market is 24 hours global market.

Use of leverage

The forex investors has opportunities to use higher leverage compared to stock market or other market. Bear in mind the leverage increases the profit and loss risk at the same time.

Practice on demo account

ATFX provides free demo account for the clients who access the markets and practice trading under real conditions, but the money clients trade with is virtual and trade risk is free. with demo accounts , the clients become familiar with the trading platform and experience different strategies.
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ATFX is a co-brand shared by a group entities including:

AT Global Markets (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with registration number 760555. The Registered Office: 1st Floor, 32 Cornhill, London EC3V 3SG, United Kingdom.

AT Global Markets (Australia) Pty Ltd is authorized and regulated by the Australian Securities and Investments Commission with AFSL number 418036. The registered office: Tower 2 Darling Park, Level 16, 201 Sussex Street, Sydney NSW 2000.

AT Global Markets SA (Pty) Ltd is licensed in South Africa by the Financial Sector Conduct Authority with FSP license number 44816 and a licensed OTC Derivatives Provider. The registered office: Office 1801B, 18th Floor Portside Tower, 4 Bree Street, Cape Town, Western Cape 8001.

ATFX Global Markets (CY) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under the license no. 285/15. The Registered Office: 159 Leontiou A’ Street, Maryvonne Building Office 204, 3022, Limassol, Cyprus.

AT Global Markets Intl Ltd is authorized and regulated by the Financial Services Commission with license number C118023331. The Registered Office: G08, Ground Floor, The Catalyst, Silicon Avenue, 40 Cybercity, 72201 Ebène, Republic of Mauritius.

AT Global Markets (SC) Limited is licensed by the Seychelles Financial Services Authority as a Securities Dealer with License No. SD093. The Registered Office: Suite 3, Global Village, Jivan’s Complex, Mont Fleuri, Mahe, Seychelles.

ATFX MENA FINANCIAL SERVICES LLC is regulated by the Securities and Commodities Authority (SCA) in the United Arab Emirates with the license number 20200000078.

EMERGING MARKETS is regulated by the Jordan Securities Commission authority as an Introducing Broker license number 643 and is the regulated entity in the Hashemite Kingdom of Jordan.

AT Global Financial Services (HK) Limited is authorized and regulated by the Securities and Futures Commission in the Hong Kong with license number BUM667. The Registered Office: 17/F, 80 Gloucester Road, Wan Chai, Hong Kong.

ATFX is a trademark of AT Global Markets INTL LTD a company registered in Mauritius under FSC and all services in the Hashemite Kingdom of Jordan is offered through its Introducing Broker.

AT Global Markets LLC is a Limited Liability Company in Saint Vincent and the Grenadines with company number 333 LLC 2020. The Registered Office: Euro House, Richmond Hill Road, Kingstown, St. Vincent and the Grenadines.

ATFX (Cambodia) Company Limited in Cambodia is regulated by the Securities and Exchange Regulator of Cambodia with the license number 040.

HIGH RISK INVESTMENT WARNING: Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full Terms of Business.

Restricted Regions: AT Global Markets LLC does not provide services to residents of certain countries, including but not limited to Canada, Japan, Democratic People’s Republic of Korea (DPRK), Iran and United States of America (USA), or any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.