A Guide To Support And Resistance In Forex Trading

Learn more about trading styles

How to trade on forex
1. Choose a foreign currency pair to trade
2. Create an account or practise on a demo
3. Decide whether to ‘buy’ or ‘sell’
4. Take steps to manage your risk
5. Open your first trade
6. Monitor your position

Open a spread betting or CFD trading account with us. With us, you can use spread bets and CFDs to trade on spot forex, forwards or options. Spread betting on forex means you’ll be speculating on the rise and fall of the currency prices. You’ll do this by betting on a certain amount of money per point of movement in the underlying market.

With us, you can also choose to trade forex CFDs. These are contract agreements used to exchange the differences in currency pair price from the time you open your position to the tie you close it.

When trading forex via spread betting or CFD trading, you’ll have exposure to the full value of the underlying market but won’t own the physical currency. When the price moves in your favour, you’ll make a profit; and make a loss if it moves against you.

Spread bets and CFDs are leveraged derivatives. With leverage, you can increase your exposure to the forex market by paying an initial deposit – called margin – that’s a fraction of the full value of the underlying market.

Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.

Spot forex
With us, you can buy or sell spot forex. The forex exchange will occur at the same time that the trade is settled. Spot prices reflect the underlying forex market and have no fixed expiry.

Forex forwards
You can trade a specific currency pair forwards with us at a set future date. Your forex choice will depend on the currency – between the pair – you believe will strengthen against the other by the set date.

Forex options
With us, you can trade forex options, which will enable you to gain the right, but not the obligation, to buy and sell the foreign currency pair on a specified future date or expiry at a specific or ‘strike’ price