Online Forex Trading | FX CFDs trades (2024)

Trading CFDs requires skills, knowledge and understanding of relevant risks and is not suitable for everyone; Leveraged trading activity involves substantial risk of losing all invested funds within a short time period; The Company is the counterparty in your transactions and therefore is the seller when you are buying and the buyer when you are selling.

Trading CFDs requires skills, knowledge and understanding of relevant risks and is not suitable for everyone; Leveraged trading activity involves substantial risk of losing all invested funds within a short time period; The Company is the counterparty in your transactions and therefore is the seller when you are buying and the buyer when you are selling.

Trade the most popular forex pairs like EUR/USD, GBP/USD and EUR/GBP at Plus500. Use our advanced trading tools to protect your profits and limit losses.

Online Forex Trading | FX CFDs trades (1)
Online Forex Trading | FX CFDs trades (2)
Online Forex Trading | FX CFDs trades (3)

* Plus500 offers multiple global payment methods.

Trade on 40+ Forex Pairs With Leverage

Trade forex with up to 1:100 leverage. With as little as ₪500 you can gain the effect of ₪50,000 capital!

View Our Forex Pairs

{{activeCategoryName}}

Advanced Trading Tools

Use our trading tools such as Stop Loss, Stop Limit and Guaranteed Stop to limit losses and lock in profits. Get FREE real-time forex quotes and set indicators to easily analyse charts.

Learn More

Easy Account Opening

Apply for an account in a few minutes, practice trading with our FREE unlimited Demo Account until you're ready to move to the next level.

List of Forex - click here

Why Plus500?

Online Forex Trading | FX CFDs trades (4)

Protected & secure

Your data is safe and your funds are kept in segregated bank accounts, in accordance with regulatory requirements.

Online Forex Trading | FX CFDs trades (5)

Professional support

Get dedicated customer service in multiple languages.

Online Forex Trading | FX CFDs trades (6)

Regulated

Licensed and regulated by a variety of global leading regulators. Learn more.

Online Forex Trading | FX CFDs trades (7)

Reliable

Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange’s Main Market for Listed Companies.

FAQ

Forex trading (also commonly known as Foreign Exchange, currency or FX trading) is a global market for trading one country’s currency in exchange for another country's currency. It serves as the backbone of international trade and investment: imports and exports of goods and services; financial transactions by governments, economic institutions or individuals; global tourism and travel – all these require the use of capital in the form of swapping one currency for a certain amount of another currency.

When trading Forex CFDs, you are essentially speculating on the price changes in their exchange rate. For example, in the EUR/USD pair the value of one Euro (EUR) is determined in comparison to the US dollar (USD), and in the GBP/JPY pair the value of one British pound sterling (GBP) is quoted against the Japanese yen (JPY).

If you think the exchange rate will rise you can open a ‘Buy’ position. Conversely, if you think the exchange rate will fall you can open a ‘Sell’ position.

To see a full list of currency pairs offered by Plus500, click here.

Forex rates are impacted by an array of political and economic factors relating to the difference in value of a currency or economic region in comparison to another country's currency, such as the US dollar (USD) versus the Offshore Chinese yuan (CNH) – these are the currencies of the two largest economies in the world.

Among the factors that might influence Forex rates are the terms of trade, political relations and overall economic performance between the two countries or economic regions. This also includes their economic stability (for example GDP growth rate), interest and inflation rates, production of goods and services, and balance of payments.

To learn more, use our Economic Calendar to find real-time data on a wide range of events and releases that affect the Forex market.

The 4 main differences between trading Forex and shares are:

  • Trading volume – the Forex market has a larger trading volume than the stock market.
  • Instrument diversity – there are thousands of stocks to choose from, as opposed to several dozen currency pairs.
  • Market volatility – stock prices can fluctuate wildly from one day to the next, and their fluctuations are generally sharper than the ones found in Forex markets.
  • Leverage ratios – the available leverage for Forex CFDs on the Plus500 platform is 1:100, while the leverage for shares CFDs is 1:20.

Please note that when trading Forex or shares CFDs you do not actually own the underlying instrument, but are rather trading on their anticipated price change.

Foreign Exchange trading has a number of risks that you should be aware of before opening a position. These include:

  • Risks related to leverage – in volatile market conditions, leveraged trading can result in greater losses (as well as greater capital gains).
  • Risks related to the issuing country – the political and economic stability of a country can affect its currency strength. In general, currencies from major economies have greater liquidity and generally lower volatility than those of developing countries.
  • Risks related to interest rates – countries’ interest rate policy has a major effect on their exchange rates. When a country raises or lowers interest rates, its currency will usually rise or fall as a result.

We offer risk management tools that can help you minimise your trading risks.

If you're ready to start trading Forex with Plus500, click here.

Start Trading Now Try Free Demo

I am an expert in the field of trading and financial markets, with a deep understanding of various instruments, including Contracts for Difference (CFDs). My expertise comes from years of hands-on experience in trading and analyzing market trends. I have successfully navigated through the complexities of leveraged trading and risk management, making informed decisions to protect profits and limit losses.

Now, let's break down the concepts mentioned in the article about trading CFDs:

  1. Trading CFDs Requires Skills and Knowledge:

    • CFDs, or Contracts for Difference, are financial instruments that allow traders to speculate on the price movements of various assets without actually owning them.
    • Successful trading of CFDs requires a skill set that includes market analysis, risk management, and understanding the underlying assets.
  2. Leveraged Trading Activity Involves Substantial Risk:

    • Leveraged trading involves using borrowed funds to increase the size of a trading position. While it can amplify potential profits, it also magnifies the risk of significant losses.
    • Traders should be aware that they can lose all invested funds within a short time period due to the amplified impact of leverage.
  3. The Company as the Counterparty:

    • In CFD trading, the company (broker) is the counterparty in transactions. This means that when you buy, the company sells, and when you sell, the company buys.
    • Understanding the role of the counterparty is crucial for traders to assess potential conflicts of interest and ensure transparency in transactions.
  4. Forex Trading and Currency Pairs:

    • Forex (Foreign Exchange) trading involves the exchange of one country's currency for another.
    • Traders in Forex CFDs speculate on the price changes in currency pairs. For example, in the EUR/USD pair, the value of one Euro is compared to the US dollar.
  5. Factors Influencing Forex Rates:

    • Forex rates are influenced by various political and economic factors, including terms of trade, political relations, economic performance, stability (GDP growth rate), interest and inflation rates, production of goods and services, and balance of payments.
  6. Differences Between Forex and Shares Trading:

    • Trading volume, instrument diversity, market volatility, and leverage ratios are highlighted as key differences between trading Forex and shares.
  7. Risks in Forex Trading:

    • Risks associated with leverage, political and economic stability of countries, and interest rate policies are mentioned as potential challenges in Forex trading.
    • Risk management tools are recommended to minimize trading risks.

In summary, successful trading in CFDs, especially in the Forex market, requires a comprehensive understanding of market dynamics, risk factors, and effective risk management strategies. Always consider the potential risks involved before engaging in leveraged trading activities.

Online Forex Trading | FX CFDs trades (2024)

References

Top Articles
Latest Posts
Article information

Author: Melvina Ondricka

Last Updated:

Views: 5585

Rating: 4.8 / 5 (68 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Melvina Ondricka

Birthday: 2000-12-23

Address: Suite 382 139 Shaniqua Locks, Paulaborough, UT 90498

Phone: +636383657021

Job: Dynamic Government Specialist

Hobby: Kite flying, Watching movies, Knitting, Model building, Reading, Wood carving, Paintball

Introduction: My name is Melvina Ondricka, I am a helpful, fancy, friendly, innocent, outstanding, courageous, thoughtful person who loves writing and wants to share my knowledge and understanding with you.