Forex Instruments are currency pairs that can be traded on international currency markets, these markets are over the counter (OTC). Currency markets are the most liquid in the world, making them one the cheapest markets for active traders to trade. Forex pairs can be traded on time frames ranging from seconds to months. There are a wide range of global market factors influencing currency movements.
EightCap enables its clients to access over 40 currency pairs. The major currency pairs make up the most liquid and popular pairs in the market and can all be accessed via EightCaps trading platform.
Some of the lowest costs involved in trading with highly competitive spreads on offer.
Leverage of up to 500:1 can enable traders to profit from incremental price movements.
Open short and long positions in market with small or large amounts of capital.
Forex trading is competitive and requires time and commitment to become proficient.
Using leverage irresponsibly can lead to losses where a large portion of your investment can be lost if the market moves against you.
Past performance of strategies is not an assurance of future performance.
The most heavily traded currency pair in the market. It also typically has the lowest spread in the forex market. It can have lower volatility than most forex pairs, although the European crisis has led to some strong trends and occasional periods of volatility. Traders often use technical trading tools to trade the EUR/USD.
The Japanese currency is viewed by many as a safe haven and can appreciate when investors become risk averse. It also tends to underperform when the global economy is performing well. For these reasons, many traders use the pair to trade based on global macro-economic factors.
This pair is the oldest currency pair to have been traded globally. While volatility was historically low, it has increased since the European economic crisis and the Brexit referendum. It can be a very profitable pair to trade, but comes with increased risk. Trading the GBP/USD, you will also need to keep an eye on potential action by the Bank of England as well as the US Fed.
Australia is one of the worlds leading commodity exporters, and the Aussie is therefore highly correlated with commodity prices. This means it exhibits strong trends due to the cyclical nature of the commodity industry. Its an excellent pair to trade global economic themes, but is also very liquid, making it suitable for short term trading too.
The Swiss Franc is also viewed as a safe haven currency, and as such tends to appreciate when markets become risk averse, and lose ground when risk appetite increases. Traders often use this pair to trade around geo-political events and potential economic crises.
The Loonie is another currency that is highly correlated with commodity prices, and in particular, oil. Its also affected by the interest rate differential between the US and Canada. Traders often use this pair to speculate on energy prices, often employing trend following strategies.
Once you are comfortable trading these major currency pairs you may want to look at the forex minors. These are made up of different combinations of the same currencies and include the EUR/GBP, EUR/CHF and GBP/JPY pairs.
Fund account with as little as $100 and start trading the global markets.
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The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. EightCap is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.