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Online currency trading with a regulated CFD broker

Currency trading explained

First of all, let’s get one thing clear: It doesn’t matter if you use the term currencies, forex or FX, it all means the same thing. Now that we’ve got this sorted out, let’s take a quick look at currency trading, which essentially means the act of buying and selling currencies. People have been doing this for centuries. Every time you go abroad and want to exchange the currency you have in your pocket with the local currency, you are conducting in currency trading.

Currency trading also takes place on a larger scale, when people buy large sums of currencies, attempting to take advantage of currency exchange rates. Many currency traders use market news and economic calendars to try and collect information that could help them make trading decisions.

Trading CFDs on currencies

When you trade currencies in the form of CFDs (contact for difference), you are investing in the price of currencies without actually buying them. Because you always buy one currency and sell another, you are in fact investing in the price of currency pairs.

Currency trading explained

Using leverage

Using leverage

One of the features of currency trading in the form of CFDs is leverage. This trading tool allows you to open large deals with a relatively small investment. It increases your trading power, but at the same time also increases risk. Because Vestle is a regulated broker, our maximum leverage rates reflect the rates set by the regulator. Leverage rates depend on the CFD instrument you trade. For currencies, the maximum leverage allowed is 30:1.

Want an example? Sure.

Let’s say you have £500 and you want to open a deal on a popular currency pair – the EUR/USD. With your £500, you can open a deal worth up to £15,000. Why? Because £500 (investment) x 30 (leverage) = £15,000.

Got it? Great. Now, let’s talk about short and long trading.


Sell or Buy?

When trading currency CFDs, you can choose to Buy (also known as ‘go short’ or ‘short trading’) or Sell (also known as ‘go short’ or ‘short trading’). This means that you can open deals regardless if you believe the price of an instrument will increase or decrease. When you go short, you sell and when you go long, you buy.

A simple way to look at it is as follows:
When you think the price of a currency pair will increase, open a ‘buy’ deal. When you think it will decrease, open a ‘sell’ deal.

 

How to open a currency CFD deal with Vestle

Vestle provides its client with access to advanced trading platforms for PC and mobile, equipped with trading tools and features.
 
In order to open a deal on our trading platform, simply:
  1. Select the currency pair you want to trade
  2. Define the size of your deal
  3. Decide if you want to buy or sell
  4. Click ‘Deal’
A quick reminder:
You can always choose to define Stop Loss and Take Profit levels. These orders can assist you in managing open deals and to better manage risks.

Instrument Sell Buy Change
Instrument Sell Buy Change
EUR/USD
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Instrument Sell Buy Change
Instrument Sell Buy Change
Instrument Sell Buy Change
Instrument Sell Buy Change
Instrument Sell Buy Change

What can affect the price of currencies?

What can affect the price of currencies?

There are numerous currencies worldwide, hence there are many factors that can play a role in affecting their prices. The following list includes a few leading factors that can be involved in currency price changes:

  • The level of stability in global economy
  • National deficits
  • Political and geopolitical factors
  • Natural disasters
  • Inflation/deflation
  • Unemployment data
  • Quantitative easing

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Most popular currency CFDs

AUD/CAD
Australian Dollar vs. Canadian Dollar
AUD/CHF
Australian Dollar vs. Swiss Franc
AUD/JPY
Australian Dollar vs. Japanese Yen
AUD/NZD
Australian Dollar vs. New Zealand Dollar
AUD/USD
Australian Dollar vs. US Dollar
CAD/JPY
Canadian Dollar vs. Japanese Yen
CHF/CAD
Swiss Franc vs. Canadian Dollar
CHF/HUF
Swiss Franc vs. Hungarian Forint
CHF/JPY
Swiss Franc vs. Japanese Yen
CHF/NOK
Swiss Franc vs. Norwegian Krone
CHF/ZAR
Swiss Franc vs. South African Rand
DKK/JPY
Danish Krone vs. Japanese Yen
EUR/AUD
Euro vs. Australian Dollar
EUR/CAD
Euro vs. Canadian Dollar
EUR/CHF
Euro vs. Swiss Franc
EUR/CZK
Euro vs. Czech Koruna
EUR/DKK
Euro vs. Danish Krone
EUR/GBP
Euro vs. British Pound
EUR/HUF
Euro vs. Hungarian Forint
EUR/JPY
Euro vs. Japanese Yen
EUR/NOK
Euro vs. Norwegian Krone
EUR/NZD
Euro vs. New Zealand Dollar
EUR/PLN
Euro vs. Polish Zloty
EUR/RUB
Euro vs. Russian Rouble
EUR/SEK
Euro vs. Swedish Krona
EUR/TRY
Euro vs. Turkish Lira
EUR/USD
Euro vs. US Dollar
EUR/ZAR
Euro vs. South African Rand
GBP/AUD
British Pound vs. Australian Dollar
GBP/CAD
British Pound vs. Canadian Dollar
GBP/CHF
British Pound vs. Swiss Franc
GBP/HUF
British Pound vs. Hungarian Forint
GBP/JPY
British Pound vs. Japanese Yen
GBP/NZD
British Pound vs. New Zealand Dollar
GBP/PLN
British Pound vs. Polish Zloty
GBP/TRY
British Pound vs. Turkish Lira
GBP/USD
British Pound vs. US Dollar
GBP/ZAR
British Pound vs. South African Rand
NOK/JPY
Norwegian Krone vs. Japanese Yen
NZD/CAD
New Zealand Dollar vs. Canadian Dollar
NZD/CHF
New Zealand Dollar vs. Swiss Franc
NZD/JPY
New Zealand Dollar vs. Japanese Yen
NZD/USD
New Zealand Dollar vs. US Dollar
NZD/ZAR
New Zealand Dollar vs. South African Rand
SEK/DKK
Swedish Krona vs. Danish Krone
SEK/JPY
Swedish Krona vs. Japanese Yen
SGD/JPY
Singapore Dollar vs. Japanese Yen
USD/CAD
US Dollar vs. Canadian Dollar
USD/CHF
US Dollar vs. Swiss Franc
USD/JPY
US Dollar vs. Japanese Yen