Forex (FX)

The foreign exchange (Forex) market is the global decentralized marketplace for currencies. It is the world’s largest and most liquid market, with an average traded value of $1.9 trillion every day.

Note: Forex is an unregulated market, therefore Limit orders may be executed at up to the limit price regardless of the Level1 market price. The SEC has prepared an Investor Bulletin with information on off-exchange Forex markets that provides additional details. Remember to always exercise caution when trading.

Pairs

Currency pairs are the quotation and pricing structure for trading in the Forex market. The value of one currency is always determined by comparing it to another currency.

base currency = first currency of a pair
quote currency = second currency of a pair

For example, when trading the currency pair EUR/USD, EUR is the base currency, and USD is the quote currency. The base currency is the currency that is being bought. The quotes represent how much of the quote currency is needed to purchase a unit of the base currency. If EUR/USD is quoting at 1.25, and you buy the pair, that means that you are using 1.25 USD to purchase 1 EUR. If you sell the pair, then you would be selling 1 EUR to receive 1.25 USD.

For more information, see Investopedia's Currency Pair Definition page.

Order Types

  • Limit Buy/Sell→ShortSell
  • Market Buy/Sell→ShortSell
  • Pegged Buy/Sell→ShortSell

Basic Market Rules

  • Lot Size: min. 25,000 shares.
  • Tick Size: varies by currency pair.
  • Short Sale Rules: short selling is allowed, and no mark or locates are required for shorting.
  • Orders executed for less than 100,000 will not appear in TOS.
  • Aggressive orders not complying with the minimum execution size of a passive opposing order will lock the market.
    • Minimum Execution Size: minimum quantity to be executed in order to complete the transaction.

See Also

Liked this blog post?

Sign up for The Opening Bell to receive our bi-weekly newsletter with actionable insights and hone your day trading skills with the help from our market experts and your favourite TraderTV personalities, delivered straight to your inbox every Tuesday morning.

Live Trading with DTTW™ on YouTube

DTTW™ is proud to be the lead sponsor of TraderTV.LIVE™, the fastest-growing day trading channel on YouTube.

With nearly 375,000 subscribers, TraderTV.LIVE™ features a daily live trading broadcast, professional education and an active community.

Watch TraderTV.Live

Accepted Payment Methods:

payment accepted dttw 2020

Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations in force in your jurisdiction. Due to current legal and regulatory requirements, United States citizens or residents are currently unable to open a trading office with us.

© 2011-2022 Day Trade The World™ All rights reserved.

Day Trade the World™ is a registered trademark of Select Vantage Canada Inc. 

Privacy PolicySitemapFraud Alert.