FOREX
THE FOREX MARKET IS THE WORLD’S LARGEST MARKET, WITH A TRADING VOLUME OF OVER $1.5 TRILLION A DAY. FOREX TRADING MEANS PAIRING ONE CURRENCY AGAINST ANOTHER, PREDICTING WHICH ONE WILL RISE OR FALL.
COMMODITIES
COMMODITY TRADING IS THE BUYING AND SELLING OF A WIDE SELECTION OF PRODUCTS INCLUDING OILs, COPPER and GAS. HEDGE RISK AND DIVERSIFY YOUR PORTFOLIO BY TRADING COMMODITIES.
METALS
TRADE PRECIOUS METALS SUCH AS GOLD AND SILVER WITH FAST EXECUTION, LOW-COST PRICING MODELS AND FLEXIBLE LEVERAGE OPTIONS. PRECIOUS METALS PROVIDE A USEFUL AVENUE FOR TRADING STRATEGY DIVERSIFICATION AND ARE CONSIDERED AS SAFE HAVENS DURING TIMES OF MARKET TURMOIL.
INDICES
TRADING CFD INDICES OFFERS YOU EXPOSURE TO THE MOVEMENTS OF GLOBAL STOCK INDEXES WITHOUT THE NEED TO ANALYSE THE PERFORMANCE OF INDIVIDUAL STOCKS. DOLPHIN MARKETS OFFERS CFDS INDICES ON MARGINS FROM JUST 1% ACROSS THE NAS100, US30, SPX500 AND MANY MORE...
Barter system (6000 BC)
Barter is the oldest method of exchange and was introduced by Mesopotamia tribes as early as 6000 BC. This method involved the trading goods for other goods with ships sailing from country to country with items such as food and animal skins.
Gold Coins (6th Century BC)
The first gold coins were produced in Lydia (Turkey) and recognised as the first known form of currency. These coins had the critical characteristics of currency as they were portable, durable and uniform. Aided by being limited in supply they were accepted over time with gold playing a pivotal role throughout the history of forex trading.
Gold Standard (1870s)
Once established as the accepted medium of exchange, gold eventually became impractical due to its weight. In the 1800s the gold standard was adopted and guaranteed that the government would exchange paper money for its value in gold.
Bretton Woods System (1944)
The forex market underwent a major transformation towards the end of World War II. The Bretton Woods System was introduced and established a set of rules for commercial and financial relations between the signatories of the agreement.
Free-Floating System (1971)
Eventually there was not enough gold to back the amount of US Dollars in circulation which brought an end to the Bretton Woods System and led to the free floating of the US Dollar against other foreign currencies. The situation that the rate of exchange was no longer pre-determined creates an open forex market with the value of currencies being exposed to market forces such as supply and demand.
Internet Trading (1990s)
The combination of technology and globalisation resulted in the exponential growth of the forex market through internet trading. Currencies that were previously shut off and emerging markets could now be traded from anywhere in the world using an online forex trading platform.
Present Day
In less than two decades the forex market has become the largest financial market in the world. Trillions of dollars are traded on the forex market every day and are no longer limited to large banks and financial institutions. Individuals are now trading FX online in the same market conditions as corporate organisations thanks to advanced technologies such as the MetaTrader 5 foreign exchange trading platforms.
Forex trading is also known as FX Trading or Currency Trading.
It refers to the central marketplace where traders exchange currencies for one another at floating rates. The foreign exchange market consists of multiple markets, including Spot FX, Future derivatives, Forward Derivatives and CFD derivatives. The Forex market is one of the largest and most liquid financial markets in the world, with a turnover reported to exceed $5 trillion per day. Forex is open to trade 24 hours a day, 5 days a week. The most common pairs to trade are called the ‘majors’. Examples would be the EUR/USD, GBP/USD and USD/CHF.
Dolphin Markets Forex pairs are traded as CFDs (Contract for Difference).
When trading forex, you select a pair of currencies and base your trading decision on which currency’s price you think will rise or fall. Forex is traded in currency pairs, for example EUR/USD. The first currency is called the ‘base currency’ and the second is the ‘quote currency’. Currencies are displayed showing how many units of the quote currency you can buy with one unit of the base currency. This is the exchange rate.For example, EUR/USD 1.2344 shows us that 1 Euro = 1.2344 US Dollars.When you’re ready to trade you will choose to go long or short. In the example above, going long means that you think that the value of the Euro will rise against the US Dollar. Going short means you think it will fall.