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Advantages of Trading the Forex Market

Available Forex Currency Pairs

Majors are the most liquid and widely traded currency pairs in the forex market, often acting as key market movers due to their high trading volume and global influence. Major currencies include EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, and NZD/USD.

Currency crosses are pairs where the US dollar is not the counter-currency. Some of the most popular and highly traded cross pairs include: EUR/GBP, EUR/JPY, EUR/CHF and GBP/JPY.

Commodity currencies are tied to countries rich in natural resources like oil, gold, and other minerals, making them highly responsive to global commodity price fluctuations. Some of the major commodity currencies include the Australian dollar (Aussie), Canadian dollar (Loonie), and New Zealand dollar (Kiwi).

Forex Trading Example

Let’s break down a forex trading example using EUR/USD, the most-traded financial market in Forex, to illustrate how leverage, margin, and closing a trade for profit or loss work. Since retail investor accounts can amplify both gains and losses due to leverage, it’s important to understand position sizing.

To practice without risk, you can open a demo account and test different position sizes for each FX pair, helping you refine your strategy before trading live.

1 Lot = 100,000 Base Currencies | Position: Long | Leverage: 30

Open

Close

Close

EUR/USD

Bid 1.1267 / Ask 1.1268

Proposed leverage is 30:1

1 Lot = 100,000 Base Currency

Bid 1.1277 / Ask 1.1278

Closing Price @ $1.1277

Bid 1.1257 / Ask 1.1258

Closing Price @ $1.1257

Value per Lot

100,000x1.1268 = $112,680 USD

Value per position

$112,770

Value per position

$112,570

Margin per Lot

112,680/30 = $3,756 USD

P/L

Profit:112,770-112,680= $90

P/L

Loss:112,680-112,570= $110

Open

EUR/USD

Bid 1.1267 / Ask 1.1268

Proposed leverage is 30:1

1 Lot = 100,000 Base Currency

Value per Lot

100,000x1.1268 = $112,680 USD

Margin per Lot

112,680/30 = $3,756 USD

Close

Bid 1.1277 / Ask 1.1278

Closing Price @ $1.1277

Value per position

$112,770

P/L

Profit:112,770-112,680= $90

Close

Bid 1.1257 / Ask 1.1258

Closing Price @ $1.1257

Value per position

$112,570

P/L

Loss:112,680-112,570= $110

Forex Trading Tips

Forex trading involves both opportunity and risk, and since the largest financial market can be highly volatile, having the right trading strategy is essential. Most accounts lose money when trading due to excessive risk, but by following smart risk management principles, you can trade more effectively.

Here are five key tips to help you minimise risk and improve your results:

1. Use Sensible Position Sizing & Risk Management

One of the biggest mistakes traders make is risking too much on a single trade. Manage your risk by setting stop losses and keeping your position size within a safe percentage of your account balance (ie 1-2%). This helps protect your capital from major market swings.

2. Trade in the Direction of the Trend

One of the basic trading tips is to follow the trend rather than trade against it. The market tends to move in sustained trends, and trading in the same direction increases your chances for good risk reward trading opportunities.

3. Understand Market Sentiment

Knowing how traders feel about the price of a currency can provide valuable insight into market direction. Use our free market sentiment tool to gauge whether traders are bullish or bearish on a currency pair before placing a trade.

4. Analyse Fundamental Data

The best way to determine the price of a currency is by analysing fundamental data like GDP, Trade Balance figures, Retail Sales, and NFP (Non-Farm Payroll) reports. These indicators reflect the economic strength of a country and can impact currency movements.

5. Avoid Emotional Trading & Stick to a Strategy

Forex works best when you have a solid plan. Emotional decisions lead to impulsive trades and higher losses. Set clear rules for entries, exits, and risk management, and follow your strategy with discipline. Or consider using an Expert Advisor (EA) and have the code execute your entry and exit rules.,By applying these tips, you can trade forex with a structured approach and reduce the risks that cause most traders to lose money.

Why Trade with ACY Securities

ACY Securities is an innovative, tech-inspired multi-asset broker based in ACY Tower in Sydney, with our Australian entity regulated by the Australian Securities and Investment Commission (ASIC). Our institutional-grade trading conditions, combined with our award-winning services, allow you to take a position with confidence.

Regulated Broker

Headquartered In Sydney

Ultra-Low-Cost Trading

Spreads from 0.0 pips

Ultra-Fast Execution

Under 30ms*

Multi-Asset CFD Provider

Stocks | FX | Commodities | Indices | ETFs

Tools of The Trade

Daily reports | Trade ideas | Education

Deep Interbank Liquidity

From 16 tier one global banks

0.0 Pips

spreads from

1:500

Leverage

Under 30ms*

ultra-fast execution

2,200+

Tradeable Instruments

Regulated

Headquartered In Sydney