When the market moves
Forex generally trades continuously from the Asia-Pacific open on Monday through the New York close on Friday. Liquidity often increases when London and New York overlap. Holidays and session transitions can reduce depth.
Markets / Forex
Trade the relationship between two economies.
The foreign-exchange market prices one currency relative to another. A pair can move because expectations for growth, inflation, interest rates, political stability, or capital flows change in either country.
CFD exposure only. You do not own the underlying asset.
Forex watchlistIllustrative
EUR/USD1.0842▲ 0.12%
GBP/USD1.2731▲ 0.08%
USD/JPY156.42▼ 0.21%
AUD/USD0.664▲ 0.05%
USD/CAD1.371▼ 0.09%
Market structure
How forex trading works.
Understand the contract
Price movement is commonly measured in pips. Position value depends on pair, contract size, account currency, and quote currency.
Price discovery
What moves forex prices?
Price responds to changing expectations. These are the main categories to monitor.
01
Interest-rate expectations
Central-bank guidance and bond yields can change the relative appeal of currencies.
02
Economic releases
Inflation, employment, growth, and activity data can rapidly reprice expectations.
03
Risk sentiment
Demand can rotate between growth-sensitive and perceived defensive currencies.
04
Flows and intervention
Commercial flows, portfolio rebalancing, and official intervention can affect price.
Market map
Types of forex exposure.
Majors
Pairs including the US dollar and another heavily traded currency.
Minors
Crosses between major currencies that exclude the US dollar.
Exotics
A major currency paired with one from a smaller or emerging economy.
Crosses
Any pair derived from two currencies without using their direct USD legs.
Category risk
Know what can go wrong.
Forex CFDs use leverage. Product-specific risk must be understood before an order is placed.
Event gaps
Central-bank decisions and data surprises may cause rapid moves and slippage.
Leverage
Small exchange-rate changes can create large account-level gains or losses.
Rollover
Overnight financing can vary by pair, direction, and interest-rate differential.
Correlation
Multiple pairs may create duplicated exposure to the same currency.
Before the trade
Use a repeatable preparation checklist.
A checklist cannot remove risk, but it can reduce avoidable errors.
01
Check the economic calendar for both currencies.
02
Identify the active trading session and likely liquidity.
03
Confirm pip value, spread, financing, and position size.
04
Define invalidation before entry.
Key terminology
Speak the language of forex.
- Base currency
- The first currency in a pair.
- Quote currency
- The second currency; the amount quoted for one unit of the base.
- Pip
- A conventional increment of FX price movement.
- Carry
- Return or cost associated with an interest-rate differential.
Forex FAQ
Common questions, clear answers.
Why do currency pairs move?+
Because expectations for the two economies and their currencies change relative to one another.
When is forex most active?+
Activity often rises during major regional sessions and the London–New York overlap, though this varies by pair.
Can a currency pair gap?+
Yes. News, weekend events, thin liquidity, and session transitions can produce gaps or slippage.
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Important risk warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. [XX]% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade only what you understand.
Review the product terms, costs, and risk before opening a leveraged position.