Speculative trading on the global Forex involves exchanging one currency for another in anticipation of a price change in your favor. As you know, there is a slight difference between the bid and ask prices for any given currency pair traded on the Forex. This difference is called the spread, and it is where the profit potential lays.
There are spreads between all currency pairs, and they average between 3 to 6 price interest points, or pips, on the major world currencies. eFOREX offers spreads as low as 2 pips in some cases. Pips are usually expressed in decimals, with the pip quoted as the last numbers of that decimal. A Forex trader's financial gain or loss is measured in pips, which are then converted into money.
Your first step to Forex trading is to open an eFOREX margin account. This is the account into which funds are deposited when you make a profit, or from which funds are deducted if your trades result in a loss. Opening a live Forex trading account at eFOREX is quick and easy, and you can begin trading in a matter of minutes, not hours.
Margins
Trading on Margin and Trading with Leverage are two ways to describe the same trading fundamental; the ability to trade a position larger than the amount of money in your account. Leverage is expressed as a ratio, for example 20:1 or 100:1. Margin is expressed as a percentage of position size, for example 5% or 1%, or in monetary terms, such as $50 or $2,000. eFOREX sets margin in terms of required margin per lot. One lot of an eFOREX account is 10,000 units of currency. (A unit of currency could be one dollar, one euro, one pound, etc. ) Therefore, $50 in funds allows you to trade 10,000 units. (For simplicity, eFOREX requires $50 in funds for every 10K lot traded, regardless of the currency pair you choose to trade.)
Examples of margin, using an eFOREX 10k account
Leverage
|
Margin %
|
Margin $
|
|
200:1
|
0.5%
|
$50
|
|
100:1
|
1%
|
$100
|
|
25:1
|
4%
|
$400
|
eFOREX offers leverage of up to 200:1 on its Forex Trading Accounts. The high degree of available leverage is a popular attraction for many traders to the Forex market, and most eFOREX traders use the default leverage; 10K accounts default to 100:1. But the amount of leverage is up to you: depending on your risk tolerance it can range from 1:1 to 200:1.
Trading foreigne xchange with any level of margin (leverage) may not be suitable for all investors.
Margin Requirements
To begin trading the Forex, simply open your margin account with us now and deposit the necessary funds for the leverage amount you wish. You'll be trading the FX live in minutes. At eFOREX, you are not required to trade in mini lots or standard lots. EFOREX offers a base trade size of $1 USD per lot.
Please note: eFOREX reserves the right to revise the following margins with no prior notice.
| Margin Requirements to Trade |
$10,000 |
$50,000 |
$100,000 |
| Deposit Amount in USD |
$50 |
$250 |
$500 |
Available Currency Pairs
Abbreviation & Full Name |
| EUR/USD |
Euro / U.S. Dollar |
| USD/JPY |
U.S. Dollar / Japanese Yen |
| GBP/USD |
British Pound / U.S. Dollar |
| USD/CHF |
U.S. Dollar / Swiss Franc |
| USD/CAD |
U.S. Dollar / Canadian Dollar |
| AUD/USD |
Australian Dollar / U.S. Dollar |
| EUR/GBP |
Euro / British Pound |
| EUR/JPY |
Euro / Japanese Yen |
| GBP/JPY |
British Pound / Japanese Yen |
| CHF/JPY |
Swiss Franc / Japanese Yen |
| EUR/CHF |
Euro / Swiss Franc |
| NZD/USD |
New Zealand Dollar / U.S. Dollar |
| GBP/CHF |
British Pound / Swiss Franc |
| AUD/JPY |
Australian Dollar / Japanese Yen |
| EUR/AUD |
Euro / Australian Dollar |
| EUR/CAD |
Euro / Canadian Dollar |
| AUD/CAD |
Australian Dollar / Canadian Dollar |
| NZD/JPY |
New Zealand Dollar / Japanese Yen |
| CAD/JPY |
Canadian Dollar / Japanese Yen |
| GBP/AUD |
British Pound / Australian Dollar |
| AUD/NZD |
Australian Dollar / New Zealand Dollar |
| USD/MXN |
U.S. Dollar / Mexican Peso |
| USD/HKD |
U.S. Dollar / Hong Kong Dollar |
| USD/SGD |
U.S. Dollar / Singapore Dollar |
| USD/ZAR** |
U.S. Dollar / South African Rand |
| CAD/MXN |
Canadian Dollar / Mexican Peso |
| EUR/HKD |
Euro / Hong Kong Dollar |
| EUR/SGD |
Euro / Singapore Dollar |
| SGD/JPY |
Singapore Dollar / Japanese Yen |
| SGD/HKD |
Singapore Dollar / Hong Kong Dollar |
| USD/HUF* |
U.S. Dollar / Hungarian Forint |
| EUR/HUF* |
Euro / Hungarian Forint |
Due to the high degree of leverage in Forex trading, any market movement can have a disproportional and amplified effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a loss of some or all of your initial margin funds. If you sustain a total loss of your initial margin funds and receive a margin call, as a standard industry practice all your open positions will automatically be closed in an effort to prevent any further losses. It is your responsibility to be aware of the margin requirements for your trades, and to keep your account fully margined at all times. Be advised that margins are subject to change without further notice.