Getting Started

What is Forex?

Foreign exchange, also known as Forex or FX, is the market in which currencies are traded. The Forex market is the largest, most liquid financial market in the world, open 24 hours a day, five days a week.

What is Spread?

A spread is simply the price difference between where the trader may purchase or sell an underlying CFD asset, this is commonly referred to as the bid and ask price.

What are the risks?

Trading Forex/CFDs is highly speculative and can lead to both profits and losses. It is important to understand that if the markets move against you, you could lose all your invested capital. It is therefore crucial that you only invest capital that you can afford to lose and manage your risk and capital properly. Keep in mind though, that GF Markets LLC maintains a “negative balance protection policy” which means you can never lose more than what you have invested.

What is Margin?

Margin represents a security deposit which is at least required to open a trade. In plain terms, margin is the amount you are contributing to a certain trade and in essence it is also the amount you stand to lose should the markets move against you.

What is CFD?

CFD stands for “Contract for Difference”. A CFD is a transaction in which two parties agree to exchange money based on the change in value (price) of the underlying asset, occurred between the point at which the position is opened and the moment when it is closed.

What amounts can I trade with CFDs?

There are no fixed amounts. When placing your order, you determine how much value is designed to a pip. While your position is open, your profit or loss is determined by this criterion. Please ensure that you understand all risks associated with CFD trading before placing your order.

What do Buy and Sell mean?

You select buy (Long) if you think that the price of the underlying asset will rise. You select sell (Short) if you think that the price of the underlying asset will fall.

What is Rollover?

Rollover refers to the interest either charged or applied to a trader’s account for positions held “overnight”, meaning after 5pm ET.

What tools do I need to trade Forex?

You only need a computer with internet connection and a funded live account with GF Markets to start.

What tools do I need to trade Forex?

You only need a computer with internet connection and a funded live account with GF Markets to start.

How does Forex trading work?

Forex is traded in pairs. Well-known currency pairs are the Euro/US Dollar, US Dollar/Japanese Yen and Great British Pound/US Dollar. You exchange one currency for the other, with as main goal to make profit by increase or decrease of your currencies’ value. There are many economic factors that contribute to currency movements.

What is the Stop-Loss and Take-Profit?

Both types of orders are used to automatically close an open position. With a Stop-Loss, losses should be limited, while the Take-Profit is used to protect profits. Once the market price reaches the Stop-Loss or Take-Profit level, the position is closed at the current available market price.

What are the trading hours for the Forex market?

The Forex market is open 24 hours a day, 5 days a week and currencies are traded worldwide among major financial centres. It opens on Sunday at 10:00 pm GMT, and closes on Friday at 10:00 pm GMT:

Sydney is open from 10:00 pm to 7:00 am GMT
Tokyo is open from 12:00 am to 9:00 am GMT
London is open from 8:00 am to 5:00 pm GMT
New York is open from 1:00 pm to 10:00 pm GMT

How do I profit from trading Forex?

There are a lot of ways to potentially profit from trading forex. You want the market to work in your favour. This can be done through several analysis methods, which include studying historical trends and current market movements. Keep in mind, that trading always involves risk. Even the best traders worldwide, aren’t right with every trade they make. The market does not always move your way, so be ready to accept losses as well.

Is Forex trading expensive?

This depends on the amount of capital invested and the leverage used, you can make it as expensive as you like. Keep in mind however, that increasing leverage, increases risk. Skilled traders can do proper risk management and minimise risk, while maximising profit.

Where can I learn more about Forex trading?

Creating a demo is a great way to start, many novices and expert traders use demo accounts to get a feel for the platform. Our demo account is free of charge and risk. For more information, please reach out to your client relationship manager. If you do not have a client relationship manager yet, create a demo account and we will be in touch soon.

Where is the central location of the Forex market?

The Forex market is not tied to a central exchange. Transactions are conducted between two counterparts over the telephone or via an electronic network (ECN), therefore the Forex market is considered an Over the Counter (OTC) market.

How are currency prices determined?

There are many factors determine currency prices. Such factors include economic and political events and announcements, interest rates, inflation, natural disasters, and there are many more factors.