What is Spot Forex Trading?
Spot forex trading involves the immediate exchange of one currency for another at the current market price (spot price). Unlike futures contracts, spot forex transactions are settled "on the spot," typically within two business days. This market operates 24 hours a day, five days a week, making it the most liquid and accessible financial market globally.
Key Characteristics
Immediate Settlement
Trades are executed at current market prices
High Liquidity
$7.5 trillion daily trading volume ensures tight spreads
Leverage Trading
Amplify your trading power with flexible leverage options
Bidirectional Trading
Profit from both rising and falling currency prices
Currency Pairs Available
Major Currency Pairs
Tightest spreads and highest liquidity
| Pair | Description | Typical Spread | Leverage |
|---|---|---|---|
| EUR/USD | Euro vs US Dollar | From 0.1 pips | Up to 1:100 |
| GBP/USD | British Pound vs US Dollar | From 0.3 pips | Up to 1:100 |
| USD/JPY | US Dollar vs Japanese Yen | From 0.2 pips | Up to 1:100 |
| USD/CHF | US Dollar vs Swiss Franc | From 0.4 pips | Up to 1:100 |
| AUD/USD | Australian Dollar vs US Dollar | From 0.3 pips | Up to 1:100 |
| USD/CAD | US Dollar vs Canadian Dollar | From 0.5 pips | Up to 1:100 |
| NZD/USD | New Zealand Dollar vs US Dollar | From 0.6 pips | Up to 1:100 |
Minor Currency Pairs (Cross Pairs)
Popular pairs without USD involvement
| Pair | Description | Typical Spread | Leverage |
|---|---|---|---|
| EUR/GBP | Euro vs British Pound | From 0.8 pips | Up to 1:100 |
| EUR/JPY | Euro vs Japanese Yen | From 0.6 pips | Up to 1:100 |
| GBP/JPY | British Pound vs Japanese Yen | From 1.0 pips | Up to 1:100 |
| AUD/JPY | Australian Dollar vs Japanese Yen | From 0.9 pips | Up to 1:100 |
| EUR/AUD | Euro vs Australian Dollar | From 1.2 pips | Up to 1:100 |
| GBP/AUD | British Pound vs Australian Dollar | From 1.5 pips | Up to 1:100 |
Exotic Currency Pairs
Emerging market currencies with wider spreads
| Pair | Description | Typical Spread | Leverage |
|---|---|---|---|
| USD/INR | US Dollar vs Indian Rupee | From 2.0 pips | Up to 1:100 |
| EUR/TRY | Euro vs Turkish Lira | From 8.0 pips | Up to 1:100 |
| USD/ZAR | US Dollar vs South African Rand | From 15.0 pips | Up to 1:100 |
| GBP/SGD | British Pound vs Singapore Dollar | From 5.0 pips | Up to 1:100 |
| USD/THB | US Dollar vs Thai Baht | From 3.0 pips | Up to 1:100 |
Execution & Technology
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Order Execution: Market execution with no requotes on ECN with No last look*
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Average Execution Speed: 12 milliseconds
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Order Types: Market, Limit, Stop, Stop Limit, Trailing Stop
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Expert Advisors (EAs): Fully supported
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Scalping: Allowed on all account types
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Hedging: Permitted
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Maximum Open Positions: 1,000 per account
MT5 Platform Features for Forex
Advanced Charting & Analysis
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Timeframes: 21 different timeframes from M1 to MN1
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Technical Indicators: 80+ built-in indicators
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Drawing Tools: 46 analytical objects for chart analysis
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Chart Types: Candlesticks, bars, line charts, and Renko
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Multi-Monitor Support: Trade across multiple screens
Order Management
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One-Click Trading: Execute trades instantly from charts
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Partial Close: Close portions of positions
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Position Management: Modify stop loss and take profit levels
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Trade History: Complete transaction history and reporting
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Risk Management: Position sizing calculator and risk assessment tools
Commodities
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Precious metals (Gold, Silver, Platinum)
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Energy markets (Oil, Natural Gas)
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Agricultural products
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Competitive margin requirements
Trading Sessions & Market Hours
Sydney Session
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Time: 22:00 - 07:00 GMT
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Active Pairs: AUD/USD, NZD/USD, AUD/JPY
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Characteristics: Lower volatility, gradual price movements
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Avg Daily Range: 50-80 pips
Tokyo Session
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Time: 00:00 - 09:00 GMT
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Active Pairs: USD/JPY, AUD/JPY, GBP/JPY
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Characteristics: Moderate volatility, trend continuation
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Avg Daily Range: 60-100 pips
London Session
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Time: 08:00 - 17:00 GMT
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Active Pairs: EUR/USD, GBP/USD, EUR/GBP
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Characteristics: Highest volatility, major breakouts
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Avg Daily Range: 80-150 pips
New York Session
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Time: 13:00 - 22:00 GMT
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Active Pairs: USD pairs, commodity currencies
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Characteristics: High volatility, news-driven moves
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Avg Daily Range: 70-120 pips