What is currency?
Currency trading is the most widely known financial market, having currencies as the basis of trade. It’s used as a medium of exchange for goods and services.
Why trade currencies?
Currencies are traded on a globally decentralized FX market which begins with the opening of Australia and continues until markets close in the US, making it accessible for any trader at any time.
In terms of volume of trading, it is by far the largest market in the world with a volume of $5.3 trillion a day. It describes the buying and selling of currency in the foreign exchange market, especially by investors and speculators.
Currency pairs can be traded either as a rolling spot FX. It is always quoted in pairs as you always compare one currency to another. The first currency of a currency pair is called the “base currency” and the second currency is called the “quote currency”. The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.
For example, the sell side of EUR/USD at 1.27345 shows how many US dollars (USD) you will receive selling 1 euro (EUR). On the contrary, the buy side of the EUR/USD at 1.27361 shows how many US dollars (USD) you need to pay to buy 1 euro (EUR).
Benefits of currency trading with WG:
- 220+ different currency pairs
- leverage of up to 500:1
- zero commission