What is FX Trading

What is Foreign Exchange?

Foreign exchange (FX) is the world’s largest and most liquid market. Larger than the shares and futures markets combined, every day over $5.1 trillion of FX transactions are traded globally.

In addition to trading for profit – also known as speculative trading – FX can be traded to diversify investment portfolios and to hedge against currency exposures in other assets.

A 24/5, truly global market

FX trading begins on Sunday evening when New Zealand banks and institutions open for business and “follows the sun” across Asia, Europe and the Americas, and then the cycle begins again each day. The trading window in each time zone overlaps – Asia with Europe, Europe with US, US with Asia – making it possible to trade Forex 24 hours a day.

Why Trade FX?

Due to the sheer size of the trading volume – $5.1 trillion traded daily – and a continuous advancement in technology, the Forex market is being accessed by more and more traders around the world. This simple access and the fact that it remains open throughout the week makes it attractive and convenient for traders of all skill levels.

Why trade Forex? Traders find the market appealing because:

  • Largest and most liquid financial market in the world
  • Open 24 hours a day, five days a week so you can trade when it suits you
  • Centralised, transparent market with deep liquidity provides a better trading experience
  • 60+ actively traded currency pairs providing many trading opportunities
  • Simple to understand, simple to trade – thanks to advances it technology
  • An ability to profit from movement in either direction (long/short selling)
  • The use of leverage to maximise potential returns, while reducing the initial outlay.


Ready to start trading?

Opening an account with ADS Securities is simple and secure. You have the option to open a live account via our secure client portal or try our FREE Demo Account.