Hedging
Hedging

Faq's

Get Answers

Things You Need to Know and
We Know Your’s

  • 01. How much does it cost to transfer money abroad?
    At Currency Hedger we believe connecting currency should be free, so we won’t charge you a thing outside of the actual exchange rate we quote. As well as seeing immediate savings by avoiding additional costs like transfer fees, you’ll also get more for your money by securing a highly competitive ...
  • 02. Will my money be safe at Currency Hedger
    Ensuring the safety of our clients’ funds is hugely important to us. We operate segregated client accounts*, adopt stringent compliance procedures and hold the highest level of creditworthiness with Dun & Bradstreet. Our Security page will give you more information about how we keep your money safe. *Our bank providers ...
  • 03. How do i get started with Currency Hedger?
    Getting started with Currency Hedger is simple and you can open an account in just a few minutes. You can register your details online or over the phone and our dedicated team will be on standby should you need a helping hand. Once registered, you’ll be assigned an Account Manager ...
  • 04. What are the benefite of using Currency Hedger over my bank?
    As an award-winning international money transfer provider, there are a number of benefits to choosing Currency Hedger to manage your currency transfers – not least being able to achieve a more competitive exchange rate. You’ll also avoid having to pay transfer fees and will have the constant support of your ...
  • 05. How long will my transfer take?
    We like to get your money where it needs to be as quickly as possible. While the amount of time a transfer takes can depend on the currency, destination and receiving bank, the funds should be in your account on the same day or within no more than two working ...
  • 06. What currencies do you offer?
    At Currency Hedger we deal with more than 60 global currencies.
  • 07. Is there a minimum or maximum transfer amout?
    We don’t have a maximum transfer limit and our range of services mean you can save money whatever the size of your transfer. Our Regular Overseas Payments service is designed for recurrent transfers of between €500 and €10,000 but with our online platform you can also move as little as ...
  • 08. What exchange rate will i get?
    At Currency Hedger we pride ourselves on offering our customers excellent exchange rates. We also provide a rate improver guarantee so you can be confident you’re getting the most for your money. When you search for an exchange rate online you’re usually seeing the interbank rate – a rate only ...
  • 09. How does Currency Hedger save me money compared to a bank?
    Currency Hedger can help you save money by making sure you secure a more competitive exchange rate than banks would offer. Additionally, unlike most banks (and many other international money transfer providers) we don’t charge any transfer fees.
  • 10. How does Currency Hedger make money?
    Large financial institutions like banks and international money transfer providers make money by buying currency at a slightly better exchange rate then they offer to their customers, with the difference between the two being the spread or margin. Currency Hedger works off smaller margins than most, meaning it can offer ...
  • 11. What are the benefits of FX options?
    When dealing in volatile currencies or in times when global trade and politics are somewhat unpredictable, options can provide a level of assurance and flexibility when it comes to your business’s FX hedging strategy.
  • 12. Why use options instead of forwards?
    Options and forwards can both be useful risk management tools which can provide a guaranteed price. However, unlike a forward, an option can also benefit you if the market is in your favour on expiry. Options can also be structured to allow for no immediate up-front cost and can be ...
  • 13. How much does an FX option cost?
    Many FX options can be structured with zero up-front cost, while vanilla options carry a premium. This premium varies and is entirely dependent on how long you want to hold the option for, the strike rate of the option, and the volatility of the currency you wish to exchange. Our ...
  • 14. What is FX/currency hedging?
    Currency hedging is the practice of protecting your business from unwanted exchange rate movements. This can be done via currency contracts or options, all of which have different functions and goals and play an important part in a risk management strategy.
  • 15. Why might my business need an FX risk management strategy?
    A risk management strategy could help you limit your currency exposure and protect your profits. All major currencies—whether due to politics, economics or other external factors—will fluctuate against each other. Whether your organisation is an importer of goods from abroad, regularly receives payment in foreign currencies or relies on paying ...
  • 16. What are the steps to building an FX risk management strategy?
    Firstly, your qualified Relationship Manager will get to know your business and the role foreign exchange plays in it. You will then specify your goals and agree on budgets so that a unique FX risk management strategy can be developed to suit your needs. Along the way, your Relationship Manager ...
  • 17. What will happen if I don’t hedge for my FX?
    If a company decides not to hedge, it will be fully exposed to foreign currency fluctuations until the invoice is settled. As a result, the company will record an exchange rate gain or loss in its accounts.
  • 18. How to reduce FX exposure?
    There are a few ways you can do it. First, you can do it through sales and purchases (e.g. hedge a certain percentage of the total sales or purchases volume). Then, you can check the exposure at the end of each day, week, or month (e.g. hedge a volatile currency ...
  • 19. Choose exactly where your trade closes
    Attach a guaranteed stop to your position, and it’ll always be closed out at exactly the price you specified. What’s more, you’ll only pay for your stop if it’s triggered. If this happens, our guaranteed stop premiums offer excellent value in the market for most major indices and FX pairs.
  • 20. Stay on top of market movement
    Set price alerts, and we’ll notify you by text or email when a market reaches your specified price. Push alert notifications can also be set and are free. They can be set up on our web-based platform and our apps. Different to text and email alerts, push alerts pop up ...
  • 01. How much does it cost to transfer money abroad?
    At Currency Hedger we believe connecting currency should be free, so we won’t charge you a thing outside of the actual exchange rate we quote. As well as seeing immediate savings by avoiding additional costs like transfer fees, you’ll also get more for your money by securing a highly competitive ...
  • 02. Will my money be safe at Currency Hedger
    Ensuring the safety of our clients’ funds is hugely important to us. We operate segregated client accounts*, adopt stringent compliance procedures and hold the highest level of creditworthiness with Dun & Bradstreet. Our Security page will give you more information about how we keep your money safe. *Our bank providers ...
  • 03. How do i get started with Currency Hedger?
    Getting started with Currency Hedger is simple and you can open an account in just a few minutes. You can register your details online or over the phone and our dedicated team will be on standby should you need a helping hand. Once registered, you’ll be assigned an Account Manager ...
  • 04. What are the benefite of using Currency Hedger over my bank?
    As an award-winning international money transfer provider, there are a number of benefits to choosing Currency Hedger to manage your currency transfers – not least being able to achieve a more competitive exchange rate. You’ll also avoid having to pay transfer fees and will have the constant support of your ...
  • 05. How long will my transfer take?
    We like to get your money where it needs to be as quickly as possible. While the amount of time a transfer takes can depend on the currency, destination and receiving bank, the funds should be in your account on the same day or within no more than two working ...
  • 06. What currencies do you offer?
    At Currency Hedger we deal with more than 60 global currencies.
  • 07. Is there a minimum or maximum transfer amout?
    We don’t have a maximum transfer limit and our range of services mean you can save money whatever the size of your transfer. Our Regular Overseas Payments service is designed for recurrent transfers of between €500 and €10,000 but with our online platform you can also move as little as ...
  • 08. What exchange rate will i get?
    At Currency Hedger we pride ourselves on offering our customers excellent exchange rates. We also provide a rate improver guarantee so you can be confident you’re getting the most for your money. When you search for an exchange rate online you’re usually seeing the interbank rate – a rate only ...
  • 09. How does Currency Hedger save me money compared to a bank?
    Currency Hedger can help you save money by making sure you secure a more competitive exchange rate than banks would offer. Additionally, unlike most banks (and many other international money transfer providers) we don’t charge any transfer fees.
  • 10. How does Currency Hedger make money?
    Large financial institutions like banks and international money transfer providers make money by buying currency at a slightly better exchange rate then they offer to their customers, with the difference between the two being the spread or margin. Currency Hedger works off smaller margins than most, meaning it can offer ...
  • 11. What are the benefits of FX options?
    When dealing in volatile currencies or in times when global trade and politics are somewhat unpredictable, options can provide a level of assurance and flexibility when it comes to your business’s FX hedging strategy.
  • 12. Why use options instead of forwards?
    Options and forwards can both be useful risk management tools which can provide a guaranteed price. However, unlike a forward, an option can also benefit you if the market is in your favour on expiry. Options can also be structured to allow for no immediate up-front cost and can be ...
  • 13. How much does an FX option cost?
    Many FX options can be structured with zero up-front cost, while vanilla options carry a premium. This premium varies and is entirely dependent on how long you want to hold the option for, the strike rate of the option, and the volatility of the currency you wish to exchange. Our ...
  • 14. What is FX/currency hedging?
    Currency hedging is the practice of protecting your business from unwanted exchange rate movements. This can be done via currency contracts or options, all of which have different functions and goals and play an important part in a risk management strategy.
  • 15. Why might my business need an FX risk management strategy?
    A risk management strategy could help you limit your currency exposure and protect your profits. All major currencies—whether due to politics, economics or other external factors—will fluctuate against each other. Whether your organisation is an importer of goods from abroad, regularly receives payment in foreign currencies or relies on paying ...
  • 16. What are the steps to building an FX risk management strategy?
    Firstly, your qualified Relationship Manager will get to know your business and the role foreign exchange plays in it. You will then specify your goals and agree on budgets so that a unique FX risk management strategy can be developed to suit your needs. Along the way, your Relationship Manager ...
  • 17. What will happen if I don’t hedge for my FX?
    If a company decides not to hedge, it will be fully exposed to foreign currency fluctuations until the invoice is settled. As a result, the company will record an exchange rate gain or loss in its accounts.
  • 18. How to reduce FX exposure?
    There are a few ways you can do it. First, you can do it through sales and purchases (e.g. hedge a certain percentage of the total sales or purchases volume). Then, you can check the exposure at the end of each day, week, or month (e.g. hedge a volatile currency ...
  • 19. Choose exactly where your trade closes
    Attach a guaranteed stop to your position, and it’ll always be closed out at exactly the price you specified. What’s more, you’ll only pay for your stop if it’s triggered. If this happens, our guaranteed stop premiums offer excellent value in the market for most major indices and FX pairs.
  • 20. Stay on top of market movement
    Set price alerts, and we’ll notify you by text or email when a market reaches your specified price. Push alert notifications can also be set and are free. They can be set up on our web-based platform and our apps. Different to text and email alerts, push alerts pop up ...
  • 21. Can I access the trading tool on a demo account?
    No, you can’t access the trading tool on a demo account. It’s only available in our live account, where you can find statistics based on your live trades.
  • 22. Why might my business need an FX risk management strategy?
    A risk management strategy could help you limit your currency exposure and protect your profits. All major currencies—whether due to politics, economics or other external factors—will fluctuate against each other. Whether your organisation is an importer of goods from abroad, regularly receives payment in foreign currencies or relies on paying ...
  • 01. What are the benefits of FX options?
    When dealing in volatile currencies or in times when global trade and politics are somewhat unpredictable, options can provide a level of assurance and flexibility when it comes to your business’s FX hedging strategy.
  • 02. Why use options instead of forwards?
    Options and forwards can both be useful risk management tools which can provide a guaranteed price. However, unlike a forward, an option can also benefit you if the market is in your favour on expiry. Options can also be structured to allow for no immediate up-front cost and can be tailored to your specific business needs.
  • 03. How much does an FX option cost?
    Many FX options can be structured with zero up-front cost, while vanilla options carry a premium. This premium varies and is entirely dependent on how long you want to hold the option for, the strike rate of the option, and the volatility of the currency you wish to exchange. Our moneycorp experts can help you identify the costs and risks associated with an FX option for your business. In addition to a foreign exchange options, we also provide a wide range of FX solutions for you and your business’s unique needs.
  • 04. What is FX/currency hedging?
    Currency hedging is the practice of protecting your business from unwanted exchange rate movements. This can be done via currency contracts or options, all of which have different functions and goals and play an important part in a risk management strategy.
  • 05. Why might my business need an FX risk management strategy?
    A risk management strategy could help you limit your currency exposure and protect your profits. All major currencies—whether due to politics, economics or other external factors—will fluctuate against each other. Whether your organisation is an importer of goods from abroad, regularly receives payment in foreign currencies or relies on paying international staff in local currency, international payments increase your exposure to ever-fluctuating exchange rates. These sudden exchange rate shifts can affect the value you receive when exchanging currency creating financial risk and making it difficult to forecast costs and income.
  • 06. What are the steps to building an FX risk management strategy?
    Firstly, your qualified Relationship Manager will get to know your business and the role foreign exchange plays in it. You will then specify your goals and agree on budgets so that a unique FX risk management strategy can be developed to suit your needs. Along the way, your Relationship Manager will provide guidance and work with you to select appropriate hedging solutions. Finally, your Relationship Manager will then begin executing the agreed FX risk management strategy, providing updates and making adjustments in line with market changes.
  • 07. What will happen if I don’t hedge for my FX?
    If a company decides not to hedge, it will be fully exposed to foreign currency fluctuations until the invoice is settled. As a result, the company will record an exchange rate gain or loss in its accounts.
  • 08. How to reduce FX exposure?
    There are a few ways you can do it. First, you can do it through sales and purchases (e.g. hedge a certain percentage of the total sales or purchases volume). Then, you can check the exposure at the end of each day, week, or month (e.g. hedge a volatile currency based on its weight on overall sales volume) or you can see the net exposure at a certain exchange rate range (e.g. hedge a certain percentage of the total sales volume when the exchange rate falls within a certain range [‘limit order’ or ‘stop order’]).
  • 09. What if I adopt systematic hedging strategy?
    If a company adopts a systematic hedging strategy, it will have almost no FX exposure. Given that the FX market is extremely volatile, with rates changing within short periods of time, it is impossible to have no FX exposure.
  • 10. How does a stop-loss order work?
    When you place a stop-loss order, sometimes referred to simply as a ‘stop order’, you’re instructing your broker to execute a trade on your behalf at a less favourable level than the current market price. You’ll usually do this to limit your losses on a position, in the event that the market moves against you. Set your stop-loss at a certain level, and your broker will close your position for you when the market hits that level – so you don’t need to watch the markets constantly. It’s worth remembering that stop-loss orders do not protect against slippage resulting from ...
  • 11. What’s meant by ‘risk’ in trading?
    In trading, ‘risk’ refers to the possibility of your choices not resulting in the outcome that you expected. This can take the form of a trade not performing as you’d thought it would, meaning that you make less – or indeed, lose more – than originally anticipated. Trading risk comes in a range of forms. The most common is ‘market risk’, the general risk that your trades might not perform based on unfavourable price movements – affected by a range of external factors like recessions, political unrest and so on. Traders are usually prepared to take on some degree of risk ...
  • 12. Choose exactly where your trade closes
    Attach a guaranteed stop to your position, and it’ll always be closed out at exactly the price you specified. What’s more, you’ll only pay for your stop if it’s triggered. If this happens, our guaranteed stop premiums offer excellent value in the market for most major indices and FX pairs.
  • 13. Stay on top of market movement
    Set price alerts, and we’ll notify you by text or email when a market reaches your specified price. Push alert notifications can also be set and are free. They can be set up on our web-based platform and our apps. Different to text and email alerts, push alerts pop up on the trading platform when using a PC, and also on your mobile when using our apps. 
  • 14. Why might my business need an FX risk management strategy?
    A risk management strategy could help you limit your currency exposure and protect your profits. All major currencies—whether due to politics, economics or other external factors—will fluctuate against each other. Whether your organisation is an importer of goods from abroad, regularly receives payment in foreign currencies or relies on paying international staff in local currency, international payments increase your exposure to ever-fluctuating exchange rates. These sudden exchange rate shifts can affect the value you receive when exchanging currency creating financial risk and making it difficult to forecast costs and income.
  • 15. What are the steps to building an FX risk management strategy?
    Firstly, your qualified Relationship Manager will get to know your business and the role foreign exchange plays in it. You will then specify your goals and agree on budgets so that a unique FX risk management strategy can be developed to suit your needs. Along the way, your Relationship Manager will provide guidance and work with you to select appropriate hedging solutions. Finally, your Relationship Manager will then begin executing the agreed FX risk management strategy, providing updates and making adjustments in line with market changes.
  • 16. What is the difference between a limit order and a market order?
    With a Market order, you place an order to execute your transaction at the current best available price. There is no upper bound on this price. With less liquid products, you may receive a worse price than what you anticipated. We therefore strongly advise you to treat this type of order with care. With a Limit Order you set a minimum price (in case of a sell) or maximum price (in case of a buy) for which you want to execute your order. Your order will never be executed at a worse price than your limit price. If the price ...
  • 17. What are the different order types?
    The order types available with DEGIRO are: Market Order Limit Order Stop Loss Stop Limit Trailing Stop Loss Order (only on German exchanges) For more information on the different order types, please refer to the Orders and Order Execution Policy document.
  • 18. What is the order duration?
    When placing an order, you select whether you want the duration to be a Day order or GTC (good-till-cancelled). A Day order will stay open until it is executed during the trading day, or until the relevant market closes. If the order is not executed by the end of the trading day of the relevant market, the order will be deleted automatically. A GTC (Good-till-Cancel) order, on the other hand, will roll over into the next trading day if the order is not executed by the end of the trading day. The way GTC orders are handled will depend on ...
  • 19. How do I place an order?
    All orders can be placed using the trading platform (Webtrader, Android or iOS app). You can reach the order window in several ways: 1.) Go to your favourites. If there are products added to this list already, you can reach the order window by clicking the buy or sell buttons next to the name. 2.) Click on the Buy or Sell button on the product detail page of the specific product. 3.) Click on the Plus symbol (right upper corner in Webtrader, left lower corner in App), search for product and choose it. You can also place an order by ...
  • 01. How do I integrate Currency Hedger API into my system?
    Read our ‘API Sandbox Documentation’ to find out how to integrate our API into your system or contact a member of our team to speak directly to an expert who can walk you through the process and answer any queries you may have. 
  • 02. What is an API?
    API stands for Application Programming Interface and operates as a digital intermediary which facilitates communications between two applications.  The average person uses 10 individual APIs per day through various applications such as Google Maps and social media apps. These apps wouldn’t be able to function without the API as this allows your phone to talk to the app and exchange information which is then displayed on your phone screen. 
  • 03. How are APIs used in the finance industry?
    APIs are considered to have the capacity to completely reshape the future of the financial services industry by enabling partnerships between banks, fintech firms and other financial services providers, such as accountants or consultants. This is hoped to usher in a new age of ‘open banking’ via an ecosystem of interconnected APIs. The possibilities of APIs are truly limitless as they can be used to amalgamate the capabilities of any existing applications such as digital wallets, blockchain or data analytics. The API pulls information from these different channels depending on its purpose and displays everything in one holistic user-friendly interface.  APIs ...
  • 04. What is a RESTful API?
    RESTful APIs refer to any API built using REST tech – ‘Representational State Transfer’ technology – which is generally preferred to its more robust counterpart SOAP tech – ‘Simple Object Access Protocol’ technology. RESTful APIs leverage less bandwidth which makes it the more suitable option for internet usage. REST is a software architectural style which provides interoperability between computer systems on the Internet. They use HTTP requests to ‘GET’, ‘PUT’, ‘POST’ and ‘DELETE’ data which the REST server reads and then sends a response back to you, the client. 
  • 05. What can I use API for?
    Full-automation of the payroll system for your company Automate international payments to suppliers Monitor exchange rates and automate conversions at a desired value
  • 06. Are there any requirements in order to open a Currency Hedger API account?
    Yes, due to the nature of our platform we have a few conditions that must be met in order to join our API network: You must have an active Currency Hedger account.  You must be transferring at least 100 payments/month or £1,000,000 in foreign exchange/month.
  • 01. Why are you charged a premium if your guaranteed stop is triggered?
    Guaranteed stop-losses will always be filled at the level that you specify, even if there is market gapping or slippage. Therefore, a fee will be triggered if the price hits your level, in order to ensure that your position closes out to minimise the risk of loss. If the GSLO is not triggered, the premium is refunded.
  • 02. How do I set up a stop-loss order?
    You can set up a stop-loss order when placing a trade on an order ticket. You can choose between a stop-loss, trailing stop-loss or guaranteed stop-loss order. Your choice of stop-loss order should be pre-determined in your risk-management strategy. See more on how risk management is a key part of any trader’s strategy.
  • 03. What is a trailing stop loss?
    A trailing stop-loss order is similar to a standard stop-loss order, but it moves with a positive trend movement, remaining at the distance specified when the order was placed, and will stay static during negative trend movements. A trailing stop loss can help a trader follow the classic mantra of ‘cut your losses and let your profit run’.
  • 04. What is a guaranteed stop-loss?
    A guaranteed stop-loss order, or GSLO, works the same as a standard stop-loss order, but for a small fee, it guarantees to exit a trade at the exact price you want, regardless of market volatility or gapping. When market conditions are very volatile, market gapping (or slippage) can occur, which can result in your stop-loss order being triggered at a different price to what you have set. Therefore, using guaranteed stop-loss orders is recommended for regularly volatile markets that experience large price fluctuations.
  • 05. What is a stop-loss order?
    A stop-loss order is a market order that helps you manage your risk by closing a trade at a pre-determined price. It’s a risk-management tool and can be used to help you avoid excessive loss of capital. Besides a classic stop-loss order, trailing stop-loss orders and guaranteed stop-loss orders are also available. Find out more about our stop-loss orders.
  • 01. How can I start financial hedging?
    To start hedging within the financial markets, open a trading account​​. Decide whether you want to spread bet or trade CFDs, and you can practise first risk-free on a demo account with £10,000 worth of virtual funds.
  • 02. What’s the difference between hedging and speculation?
    While traders usually speculate on an asset’s price movements with the aim of making a profit from drops and rises, hedging aims to offset risk and prevent losses, while not focusing entirely on profit. Hedging is rather seen as more of a risk-management strategy​​.
  • 03. What is the best hedging strategy?
    There is no ‘best’ hedging strategy that works for every trader as each individual will have a different overall objective, amount of capital to spend and risk appetite. Therefore, you should research the different types of strategies before deciding on one that suits your goals and opening an account​​.
  • 04. What are hedging strategies for the currency market?
    Some strategies used for forex hedging include the use of options and forwards, as well as carry trades and cross currency swaps. You can use long or short positions on forex CFDs to hedge your currency exposure from other international assets you might own. Learn more about hedging in the forex market​​.
  • 01. Can you trade CFDs in the long term?
    It’s possible to trade CFDs in the long term by adopting a buy and hold approach. Traders will usually do this if they think that an asset’s value will increase over a long period of time, which is known as position trading​.
  • 02. How do you successfully trade CFDs?
    When trading CFDs in the financial markets, there is no guarantee of success. However, you can use our CFD trading library​ to find out definitions, tips and examples that will help you to get started with the derivative product.
  • 03. Is CFD trading easy?
    No, CFD trading isn’t easy, even for professional traders. CFDs are complex investment products that present a high risk of capital loss, and therefore, you should look into risk-management controls in order to minimise this risk as much as possible. Read our guide on “what are CFDs?” for more information.
  • 04. What is the best strategy for CFD trading?
    There isn’t a definitive “best strategy” when it comes to CFD trading, as this will depend on each individual trader’s personality and goals, as well as risk-management tolerance. Take a look at our guide to popular trading strategies that you can apply to contracts for difference.
  • 01. Why spread bet?
    Spread betting allows you to trade tax-free on a wide range of financial markets 24 hours a day, from Sunday night through to Friday night. Trade on your phone, tablet, PC or Mac on a wide range of instruments using leverage. Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.
  • 02. What is leveraged trading?
    One of the features of spread betting and CFD trading is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it’s important to manage your risk.
  • 03. How do you trade commodities?
    The commodity markets are traded in a similar way to other types of financial instruments, but there are some points to be aware of in order to avoid any shocks or surprises when dipping your toe into commodities trading.
  • 04. What is a commodity?
    A commodity is a physical good that can be bought or sold on the various commodity markets. Commodities can be categorised into either hard or soft varieties. Hard commodities are natural resources like oil, gold and rubber and are often mined or extracted. Soft commodities are agricultural products such as coffee, wheat or corn.
  • 01. How does spread betting/trading CFDs on indices actually work?
    When you spread bet or trade CFDs on indices on our platform, you don’t buy or sell the underlying index. Instead, you’re taking a position on whether you think the index will go up or down. With spread betting, you buy or sell an amount per point movement for the index instrument you’re trading, such as £5 per point. This is known as your stake. With CFD trading, you buy or sell a number of units for a particular instrument. For every point or unit that the price moves in your favour, you gain multiples of your stake, and vice ...
  • 02. What is leveraged trading?
    One of the advantages of spread betting and CFD trading is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it’s important to manage your risk.
  • 03. How to trade on indices?
    You can start trading on indices now by opening a live account​. If you would like to practise your index trading strategy first, open a demo account​ to trade with virtual funds.
  • 04. What are indices?
    Indices are a measure of a section of shares in the stock market, created by combining the value of several stocks to create one aggregate value.
  • 01. What is leveraged trading?
    One of the advantages of spread betting and trading CFDs is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it’s important to manage your risk.
  • 02. What is margin in forex?
    Forex margin rates are usually expressed as a percentage, with forex margin requirements typically starting at around 3.3% in the UK for major foreign exchange currency pairs. Your FX broker’s margin requirement shows you the leverage you can use when trading forex with that broker.
  • 03. Forex trade examples?
    To help you understand how forex trading works, view our CFD examples, which takes you through both buying and selling scenarios.
  • 04. How to trade forex?
    When trading forex, you speculate on whether the price of one currency will rise or fall against another. For example, if you believe that the value of the British pound will rise, relative to the value of the US dollar, you would go ahead and trade the GBP/USD pair.
  • 05. What is forex?
    FX trading, also known as foreign exchange trading, or forex trading, is the exchange of different currencies on a decentralised global market. It’s one of the largest and most liquid financial markets in the world. Forex trading involves the simultaneous buying and selling of the world’s currencies on this market.