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Forex Trading UK

888 markets offer a premium Forex trading platform. As an investor with 888 markets you can trade with confidence and assurance from a Cyprus regulated firm.

Foreign Currency Trading

Foreign Exchange – the World’s Largest Financial Market

What is Forex?

Often referred to as ‘FX’ or ‘Forex’ it is considered to be the most liquid market in the world. The Forex market is the platform for trading global currencies. With a daily turnover measured in trillions of US dollars, the Forex market beats the combined turnover of global stock and bond markets.

Forex Currency Trading – Why Trade Forex?

Investors are drawn to Forex currency trading due to the huge trading volumes and the liquidity provided; representing the largest asset class in the world.

Other factors that make Forex currency trading popular are:

  • Geographical distribution of markets
  • Continuous operation (*Sunday 22:00 – Friday 22:00 GMT)
  • Huge number of market participants including banks, commercial companies, investment management firms, Forex brokers, hedge fund speculators and even individual traders.

The Forex Trading Platform & Foreign Currency Trading:

Forex traders speculate on the value of one currency compared to another in order to generate profits. Foreign Currency Trading is typically executed on margin accounts and the industry practice is to trade on relatively small margin amounts.

Currencies that are traded against the US Dollar (“USD”) are called Majors, and these constitute the highest volumes of Forex trades.

Forex Trading UK – Why Choose 888 markets?

With 888 markets you will:

  • Get access to various major and exotic currency pairs
  • Trade all the major highly liquid currency pairs
  • Benefit from access to a pool of liquidity providers
  • See fixed spreads and fast, reliable execution

Rollovers/ Swaps

The interest added or deducted for holding a position open overnight is called a rollover or swap. The rollover rates are determined as the differential overnight interest rate between the currency pair on which the position is being held. The rollover also depends on the position type (Buy (Long) / Sell (Short)).

Important Considerations:

  • Swaps are only charged on positions held overnight.
  • The rollover process begins at the end of the day’s trading as published and amended periodically on the firm’s website. Some currency pairs may have negative rollover / swap rates on each side (Long / Short).
  • The rates are mentioned as points. Trading platforms automatically convert them into the base currency of the trading account.
  • Rates are calculated based on USD accounts per one standard lot.
  • Swaps are calculated nightly, although certain nights might be charged at a special rate.
  • Rates are subject to change and should be regularly reviewed.

Online Forex Trading Platform – Trading Conditions

Online Forex Trading – Storage

The fixed fee applied to an interest-free online Forex trading account, or online CFD trading account is known as storage. An interest-free online Forex trading account may maintain an open Forex position for a fixed grace period without being charged any storage charges. Any Forex positions that remain open beyond the fixed grace period are subject to the storage charge.

The client will pay to 888 markets a fee as per the table below for each day the position is kept held after the first 15 days of opening the position.

CURRENCY CHARGES TABLE

CURRENCY Charge in US$/Day*
EURUSD 12
GBPUSD 10
USDCHF 8
USDJPY 10
USDCAD 8
AUDUSD 15
NZDUSD 12
EURGBP 8
EURJPY 15

CURRENCY CHARGES TABLE

CURRENCY Charge in US$/Day*
EURCHF 10
GBPJPY 15
GBPCHF 12
CHFJPY 8
AUDJPY 15
GBPCAD 8
NZDJPY 15
GOLD 8
SILVER 15

What is Margin/Leverage?

The amount deposited with 888 markets at the time of opening a trading account is known as the initial deposit and acts as the margin available to your trading account. The margin amount facilitates the level of gearing or ‘leverage’ allowed for trading.

888 markets reserves the right to liquidate the positions taken by you if the initial deposit and variation margin fails to cover the losses incurred.

What are Pips?

A Pip is the smallest increment of movement for a currency.

  • One pip in EUR/USD pair is a move of 0.0001 or 1/100th of a cent.
  • One pip in USD/JPY pair is a move of 0.01 or 1/10th of a cent.
For example if the value of GBP/EUR increases by a pip, the quoted rate will change from 1.2478 to 1.2479. The number of pips a currency pair moves determines the profit or loss for a trade.

What are Lots and Mini Lots?

A Forex lot is used to calculate the value of a deal. Each deal is valued at a certain number of lots, which is the standard unit size of the transaction.

One standard lot is typically equal to 100,000 units of the base currency and a mini lot is 10,000 units, whilst a micro lot is 1000 units. With 888 markets, traders can choose the following lot sizes while trading currency:

  • Standard lot size = 100,000 units – USD 10 for every pip move- leverage of 100 to 1
  • Mini-lot size = 10,000 units – USD 1 for every pip move
  • Micro-lot size = 1,000 units – USD 0.10 for every pip move

Forex Trading UK – 888 markets

Our experienced and helpful staff are always on hand should you need assistance with the Forex trading platform, margin / leverage, pips and lots more, although it is to be remembered that our staff are not authorised under our regulatory permissions to provide investment advice to you.

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