Market Overview
Forex Market
Access the world’s largest and most liquid financial market and trade global currencies 24 hours a day with V Markets.
Market mechanics
How Does Forex Trading Work?
In the modern Forex market, you don't typically buy physical currency (like at an airport kiosk). You trade CFDs (Contracts for Difference), which allow you to speculate on both rising and falling prices without owning the underlying asset.
Trading always takes place in pairs. Every transaction involves simultaneously buying one currency and selling another.
Market mechanics
Let's look at the most popular pair: EUR/USD.
EUR
The first currency in the pair (the base currency). This is what you are 'buying' or 'selling
USD
The second currency (the quote currency). It determines the price of the base currency.
Examples at V markets
If the EUR/USD rate is 1.1000, it means you need 1.10 US Dollars to buy 1 Euro.
BUY
(Going Long)
You open this position if you expect the Euro to gain value against the Dollar.
Sell
(Going Short)
You open this position if you expect the Euro to lose value (become cheaper) and the Dollar to strengthen.
Market mechanics
What moves currency prices?
The Forex market is highly sensitive to global events. As a trader at V Markets, you need to know what drives the charts.
Interest Rates
Central bank decisions (e.g., FED, ECB) are the #1 driver. Higher interest rates typically strengthen a currency.
Economic Data
Reports on inflation (CPI), GDP, or labor market data (e.g., US NFP) cause immediate price spikes.
Geopolitics
Wars, elections, or political instability can weaken a nation's currency.
Supply and Demand
Capital flows between global companies (e.g., Apple exchanging profits from Europe into Dollars) affect the exchange rates.
Trading Sessions
When can you trade?
The Forex market never sleeps. It operates 24 hours a day, 5 days a week. As one major financial hub closes, another opens.
[Tokyo]
Asian Session
The start of the trading week. Generally calmer, with focus on JPY, AUD, and NZD pairs.
[Sydney]
[London]
European Session
The highest trading volume. High volatility on pairs involving EUR and GBP.
[New york]
North American Session
Highest liquidity. Key US macro data releases occur here.
Our offer includes
categorized by liquidity and characteristics
24/5 Access
Forex Trading Specifications
We provide "institutional-grade" conditions for every client. Transparency is our priority.
Parameter
Details
Trading Hours
24/5 (Monday 00:00 – Friday 23:59 GMT)
Leverage
Up to 1:500 (Flexible adjustment)
Spreads
From 0.0 pips on PRO accounts
Contract Size
1 Lot = 100,000 units of base currency
Min. Volume
0.01 Lot (Micro-lot)
Swaps
Charged at midnight (Rollover). Swap-Free accounts available.
Stop Out Level
Depending on account type (typically 30-50%)
