What is Forex trading?

The foreign exchange market (FX) as a whole, consists of many types of markets, including Spot FX, Future derivatives, Forward Derivatives, and finally the CFD derivatives market, which is the most popular for retail clients. All forex trading transactions combined make up the largest and most liquid financial market, with an average daily volume of over $5 trillion.

With CFD Stock trading, you don’t buy or sell the underlying asset. Instead, you buy or sell a number of units for a particular financial instrument, depending on whether you think prices will go up or down. For every point the price of the instrument moves in your favour, you gain multiples of the number of CFD units you have bought or sold. For every point the price moves against you, you will make a loss. Since you trade on the expectation of a price movement you can take a short position (expecting the price to decrease) as well as a long one (expecting the price to increase), you can still make a profit when the Stock falls in value — not just when it rises.