Guide
How forex trading works
Forex trading is buying one currency and selling another at the same time, to trade on the change in their exchange rate. Currencies trade in pairs such as EUR/USD, on a worldwide market open 24 hours a day, five days a week. Most private clients trade forex through CFDs, so they never hold the currencies themselves.
If you buy EUR/USD, you gain when the euro rises against the dollar and lose when it falls. If you sell, it is the other way round.
The basics in plain words
Currency pair
Two currencies quoted against each other. In EUR/USD the euro is the base currency and the dollar the quote currency: the price says how many dollars one euro costs.
Pip
The usual smallest step of a price. For EUR/USD it is the fourth decimal, 0.0001. For pairs with the Japanese yen it is the second decimal, 0.01.
Spread
The gap between the sell and the buy price. It is the main cost of a trade and can widen at the open and around major news.
Lot
The size of a trade. A standard lot is 100,000 units of the base currency. Mini and micro lots are 10,000 and 1,000 units.
Leverage and margin
You put down part of the position's value as margin. In the EU the limit for major pairs is 1:30 for private clients, so a 30,000 EUR position needs 1,000 EUR of margin.
Trading hours
From Sunday evening to Friday evening, Central European Time, as trading moves from Sydney and Tokyo to London and New York. The busiest hours are when London and New York overlap.
What moves currency prices?
Interest rates and central-bank decisions, inflation and jobs data, economic growth, politics and how much risk investors are willing to take. A surprise in any of them can move a pair within seconds, which is why spreads can widen and prices can jump around big announcements.
How do Orbis Official clients trade forex?
At Orbis Official, our desk of 300+ analysts trades currencies for clients with AI assistance: the AI marks signals, analysts decide and the desk places the trades. You follow every position live in the app and can place your own trades too. The live prices on our home page show pairs the desk trades.
What are the risks of forex trading?
Currency prices can move fast, and with leverage a small move against you takes a large part of your margin. Prices can gap over a weekend or on news, and a stop loss is not always filled at its level. Past results never promise future ones.
Read the risk disclosure and only trade with money you can afford to lose.
FAQ
Questions about forex trading
How much money do I need to start forex trading?
It depends on the broker. At Orbis Official the Basic account starts from a first deposit of 250 USD. Only trade with money you can afford to lose.
Is the forex market open 24 hours?
Yes, from Sunday evening to Friday evening, Central European Time. It closes at weekends, and prices can open at a different level on Monday.
What is a pip?
The usual smallest step of a currency price: 0.0001 for most pairs and 0.01 for pairs with the Japanese yen.
Can I trade forex myself at Orbis Official?
Yes. Our analysts trade your account, and you can place your own trades in the app whenever you like.
Four accounts. One desk.
Our 300+ analysts trade every account with AI assistance, and you watch each trade live in the app. CFDs carry a high risk of losing money.