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Full FX CFD product details, including currency pairs, spreads and margins.
Full FX MT4 product details, including currency pairs, spreads and margins.
Get full market transparency when you trade FX CFDs with our in-house DMA service.
Forex (or sometimes just FX) is short for foreign exchange, and is the largest financial market in the world. Simply put, it’s how individuals and businesses convert one currency to another.
FX transactions worth trillions of dollars take place every day, and unlike stocks or commodities there’s no central exchange. Instead, currencies are traded by a global network of banks, dealers and brokers, which means you can trade any time, day or night, Monday to Friday.
FX prices are influenced by a range of different factors, including interest rates, inflation, government policy, employment figures and demand for imports and exports.
And because of the sheer volume of currency traders and the amount of money exchanged, price movements can happen very quickly, making currency trading not only the largest financial market in the world, but also one of the most volatile.
Forex trading enables you to speculate on the relative strength of one currency against another. The large number of traders and immense quantity of currency traded on a daily basis give the forex market exceptionally high liquidity. This means it’s a very easy market for anyone to access – you can normally buy a currency on demand, because another trader somewhere will be willing to sell, or vice versa.
In trading forex you generally only need a small margin to get started, there are low transaction costs, and you can take advantage of high levels of leverage. It should always be kept in mind that leverage not only magnifies your potential profits but also your potential losses. It is possible to lose much more than your initial margin if the market turns sharply against you.
Spot FX AUD/USD
0.76912 / 0.76920
Buy at 0.76920 (7,692.0 points)
1 standard contract
Equals US$10 per point
Margin = Number of contracts x value of one contract x current level (mid price) x margin rate (0.5%)
1 x US$10 x 7,691.6 x 0.5% = US$384.58
|What happens next?||
AUD/USD climbs 150 points into the next day. This position is held through 10pm London time, when funding is calculated.
Funding = size x (tom-next rate + admin fee of 0.3% pa)
US$10 x -0.96 = -US$9.60 (so you would actually receive US$9.60 in this instance)
0.78412 / 0.78420
Sell at 0.78412 (7,841.2 points)
7,841.2 - 7,692.0 = 149.2 points
Each contract is worth US$10 per point (so US$10 x 149.2 points)
Gross profit = US$1,492
0.8 point IG spread (included above)
Funding adjustment = US$9.60 (a credit to your account)
What if the market dropped 150 points instead (with a spread of 0.8 points):
US$1,508 - US$9.60
Net loss = US$1,498.40
|IG spreads||Forex Direct (DMA)||
|Min. spread||Av. spread2||Av. spread3|
See our full list of currency pairs and live prices.
The world's and Australia's No.1 CFD provider, and Australia's No.1 retail forex provider1.
Spreads from 0.6 pips on EUR/USD and AUD/USD
Without having to buy and store actual bitcoins
Full market transparency with Forex Direct (DMA)
Essential and pro charts on desktop and apps
A volume rebate scheme for high volume traders.
1 World's largest retail CFD provider by revenue (excluding FX). Source: Published financial statements, as at October 2016. Number 1 in Australia by primary relationships, Investment Trends November 2015 FX Report. Investment Trends May 2016 CFD Report.
3 Time-weighted (22:00-20:00 GMT) average spread by trade (quoted to three decimal places), August 2016.
4 Percentage of attached and unattached orders filled at the requested level, December 2015.
* Guaranteed stops are not available on all markets and the size of the positions on which we are able to offer this facility may be limited. Please contact our Helpdesk for details.