What is forex?
Forex (short for “foreign exchange”) is the arena where currencies are traded. On Weltrade, available Forex currency pairs are offered as Contracts for Difference (CFDs). This means you trade based on exchange-rate movements without buying or owning the underlying currencies.
If you buy EUR/USD, you expect the euro to strengthen against the US dollar. If you open a Sell position, you expect the euro to weaken against the US dollar. No currencies are delivered or owned.
The underlying Forex market doesn't run on schedule. It's active 24 hours a day, Monday through Friday - markets in Tokyo, London, and New York overlap in a never-ending rolling cycle.
Here's what sets forex apart:
Forex CFDs are traded in pairs and can be fast-moving. Macroeconomic conditions, interest rates, economic data, and political events may affect currency values, but market movements cannot be predicted with certainty.
Terms you’ll hear:
Forex market. The entire global network of banks, brokers, and traders.
Forex share market. A misnomer. Forex has no shares. Just currencies.
Wondering what stocks are in forex? It's a trick question. Stocks don't exist in Forex. You're never just “buying” - putting one currency up against another in a tug-of-war. There is no equity, no shares, just direction and speed.
For traders who want global exposure, fast trades, and round-the-clock opportunities, Forex isn’t just a market - it’s an ecosystem built for movement.
With Weltrade’s platform you can open a Forex account in minutes, trade for as little as $25, and access the market 24/5 with zero hassle.
Frequently asked questions (FAQs)
How does Forex trading work?
How does Forex trading work?
On Weltrade, Forex trading involves opening a Buy or Sell position on a CFD based on a currency pair, such as EUR/USD. Your profit or loss depends on the price movement, position size, and applicable trading costs. You do not exchange or own the underlying currencies.
When is the Forex market open?
When is the Forex market open?
The Forex market operates 24 hours a day, five days a week, following the global trading sessions in Asia, Europe, and North America.
Who participates in the Forex market?
Who participates in the Forex market?
Participants include central banks, commercial banks, financial institutions, corporations, hedge funds, and individual retail traders. Weltrade clients trade CFDs based on currency-pair price movements.
What factors influence Forex exchange rates?
What factors influence Forex exchange rates?
Exchange rates are influenced by interest rates, inflation, economic data, political events, central bank decisions, and overall market sentiment.
What is leverage in Forex trading?
What is leverage in Forex trading?
Leverage allows traders to control larger positions with a smaller amount of capital. While it can increase profits, it also significantly increases potential losses. Learn more about leverage in our Help Center article: What is leverage?