FOREX CONTRACTS

Forex, or Foreign Exchange (FX), is the global marketplace for buying and selling currencies. It is the largest and most liquid financial market in the world, with an average daily trading volume exceeding $6 trillion. Unlike other financial markets, forex operates 24 hours a day, five days a week, due to its decentralized nature and global reach.

Forex trading involves trading one currency against another, known as currency pairs. The first currency in the pair is the “base” currency, and the second is the “quote” currency. For example, in the pair EUR/USD, the Euro (EUR) is the base currency, and the US Dollar (USD) is the quote currency.

• Forex trading involves buying one currency while simultaneously selling another. The goal is to profit from changes in exchange rates between the two currencies.
• For example, if a trader believes the Euro will strengthen against the US Dollar, they will buy EUR/USD. If the Euro does rise in value, the trader can sell the position at a profit.

• Banks and financial institutions: The biggest players in the forex market, providing liquidity and facilitating large transactions.
• Corporations: Engage in forex to hedge against currency risk in international trade.
• Central Banks: Influence forex markets through monetary policy, interest rates, and interventions.
• Retail Traders: Individual investors who trade forex through brokers, usually in smaller amounts.

• Economic Data: Reports like GDP, employment figures, and inflation impact currency values.
• Interest Rates: Central bank interest rate changes can strengthen or weaken a currency.
• Political Stability: Political events, elections, and geopolitical tensions can cause currency volatility.
• Market Sentiment: Traders’ perceptions and news can drive market moves beyond fundamental factors

• Profits on spreadbetting Forex contracts are tax free for UK clients*
• Losses on trading CFD Forex contracts can be offset against your tax for UK clients*
• If spread betting is your sole income then it may be subject to income tax. Please check the government website or with your tax advisor
• It is dependent on the individual’s financial circumstances and is subject to change. Profits are subject to Capital Gains Tax

  * Dependent on the individual’s financial circumstances and subject to change.