Forex trading

AG Markets offers you the chance to trade online in over 60 currency pairs with razor thin spreads and precise execution. Trade the market 24 hours a day between Sunday evening at 9 PM and Friday evening at 8 PM. Spread and leverage details below:

Currency pairs Min spread Available leverage
EUR/USD 0.8 200:1
GBP/USD 0.9 200:1
USD/CHF 0.9 200:1
USD/JPY 0.9 200:1
AUD/USD 0.8 200:1
EUR/JPY 1 200:1
GBP/JPY 1.7 200:1
USD/CAD 0.9 200:1
EUR/CHF 0.8 200:1
EUR/GBP 0.8 200:1
Currency pairs Min spread Available leverage
EUR/ZAR 43.3 200:1
GBP/AUD 1.4 200:1
GBP/CAD 2.1 200:1
GBP/CHF 1.9 200:1
GBP/DKK 5.3 200:1
GBP/NOK 5.1 200:1
GBP/NZD 3.8 200:1
GBP/SEK 33.1 200:1
HDK/JPY 22.6 200:1
NOK/JPY 26.2 200:1

What is the Forex Market? - Explanation:

Operate and trade with Forex (abbreviation for Foreign Exchange) refers to the foreign exchange market, which also refers to the global markets in which people, companies and finance institutions exchange currencies at variable rates.

The Forex market is considered the world’s biggest and most liquid market. This is because of multiple factors, one of them is that it is possible to operate through the internet.

How to trade in the Forex market?

To invest and trade with Forex is different from the other kind of trades, because it is possible to trade either upward or downward trends. In the exchange market (Forex market) you trade currency pairs, one currency against the other, for example Euro/Dollar, Pound/Dollar, Dollar/Yen, one currency rises while the other one falls. Let’s see a concrete example:

We will explain it simply, pretend for example, that the currency of your country, because of financial reasons, will suffer devaluation. Now that you know this, that your currency will be devaluated, you want to “protect” the value of it. So, usually, people acquire assets, property OR another way of not losing money is by buying a “stronger” currency, one with more value, one that is not going to be devaluated. So, let’s say you decide to buy Euros, you go to an exchange house and buy (exchange) a certain amount of Euros. Then, you wait for the devaluation and you do the same operation, the other way around. You sell the Euros that you previously bought, so you receive a higher amount of money than you invested initially.

All the advantages of AG Markets from 1 broker account

Contract specifications for currencies on AG Markets.

The contract specifications for currency pairs on AG Markets have to do with the following:

How does leverage work?

Leverage is a form of virtual credit or, as we like to put it, a capital booster, this allows a regular trader to operate in the market. Let’s pretend that in our trading account we have $1,000, if we use a 1:100 leverage we then are able to operate with $100,000 (1,000 x 100). This means that if a currency rose 2% we would win the 2% of $100,000, in other words, we would win $2,000 with an initial capital of just $1,000. If we lose, we wouldn’t lose $100,000, but our losses would be limited to the initial $1,000.

Financial leverage is the only way for small investors, newbies and/or traders that have little money, to invest in the Forex Market. This market was originally intended for banks and financial institutions. Leverage is a necessary characteristic in the CFD and Forex market, not only because of the need of a large amount of money to take part of it, but also because the major currencies and actives fluctuate, on average, less than 1% per day.

Opening a position – Explanation

Let’s pretend, for example, that you think that Donald Trump is going to take certain measures in the following days, which are going to have a positive effect on the US economy. So now you think that the USD will rise against the Euro. Now you decide to open the position of $50,000 by selling the EUR against the USD to the quoted price of 1,0620. Each point that the first or fourth digit (called pip) moves in the stock price means a gain or loss of $5 (0,0001 * $50,000). If your stop loss, with a $500 margin, is set it at 1,0720 (100 pips). During the course of the days the results that you expected occur, the USD rose, and the EUR/USD exchange rate falls to 1,0610. You decide to close positions and take your profits.

If you'd like to read the complete Contract Specifications for Standard Accounts, please click here.

  • merrill lynch
  • Barclays
  • Deutsche bank
  • Credit suisse
  • Goldman sachs - bank