CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.71% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Take advantage of Cryptocurrency volatility without owning it.

Currency prices are constantly fluctuating against each other, offering multiple trading opportunities daily.

Unlike most financial markets, the OTC (over-the-counter) foreign exchange market has no physical location or central exchange and trades 24-hours a day through a global network of businesses, banks and individuals. This means that currency prices are constantly fluctuating in value against each other, offering multiple trading opportunities.

At City Index, you can speculate on the future direction of currencies, taking either a long or short position depending on whether you think the currencys value will go up or down.The below video shows you how to trade the EUR/USD currency pair with CFDs.

Decide which currency pair you wish to trade. With over 65 currency pairs to choose from, picking a trading opportunity thats right for you is important.

City Indexs technical and fundamental research tools can help you spot currency trading opportunities to suit your trading style. We recommend that you take your time to understand the amount of price volatility associated with the currency pair to help manage your risk.

There are three ways to trade forex with City Index Spread Betting, CFD or Forex Trading. Each has its particular stake size:

In spread betting you trade pounds per point movement

In CFD trading you trade a quantity of CFDsin the unit of the base currency (currency on the left). For example if you trade GBP / USD your stake would be in Pounds, while in USD / JPY your stake would be in US Dollars

In Forex trading you buy lots, in the unit of the base currency (currency on the left)

For example if you trade GBP / USD your stake would be in Pounds, while in USD / JPY your stake would be in US Dollars (the minimum stake size is 1000)

Once you have picked a market, you need to know the current price it is trading at, which you can do by bringing up an trade ticket in the platform. All forex is quoted in terms of one currency versus another. Each currency pair has a base currency and a quote currency. The base currency is the currency on the left of the currency pair and the quote currency is on the right. Put simply, when trading foreign currencies, you would:

BUYa currency pair if you believed that the base currency will strengthen against the quote currency, or the quote currency will weaken against the base currency.

Your profits will rise in line with every increase in the exchange price.

For every point the exchange price falls below your open level, you will incur a net loss.

SELLa currency pair if you believed that the base currency will weaken in value against the quote currency, or the quote currency will strengthen against the base currency.

Your profits will rise in line with each point the exchange price falls.

For every point the exchange price rises above your open level, you will incur a net loss.

The first price is the sell price (known as the bid) and the second price is the buy price (also known as the offer). The difference between the buy price and the sell price is known as the spread, and is basically the cost of the trade.

An order is an instruction to automatically trade at a point in the future when prices reach a specific level predetermined by you. You can utilise stop and limit orders to help ensure that you lock in any profits and minimise your risk when your respective profit or loss risk targets are reached.

While not compulsory, given the volatility in FX markets, using and understanding risk management tools such as stop loss orders is essential.

A stop loss orderis an instruction to close out a trade at a price worse than the current market level and, as the name suggests, is used to help minimise losses. There are two types of stop loss orders – standard and guaranteed.

Astandard stop loss order, once triggered, closes the trade at the best available price. There is a risk therefore that the closing price could be different from the order level if market prices gap.

Aguaranteed stop losshowever, for which a small premium is charged upon trigger, guarantees to close your trade at the stop loss level you have determined, regardless of any market gapping.

A limit orderis an instruction to close out a trade at a price that is better than the current market level and is used to help lock in price targets.

Standard stop losses and limit orders are free to place and can be implemented in the dealing ticket when you first place your trade, and you can also attach orders to existing open positions.

Once open, your trades profit and loss will now fluctuate with each move in the market price.

You can track market prices, see your unrealised profit/loss update in real time, attach orders to open positions and add new trades or close existing trades from your computer or app on your smartphone and tablet.

When you are ready to close your trade, you simply need to do the opposite to the opening trade. Supposing you bought 3 CFDs to open, you would sell 3 CFDs to close. By closing the trade, your net open profit and loss will be realised and immediately reflected in your account cash balance.

Please note that City Index Spread Betting and CFD accounts are FIFO – toread moreabout this please visit our help and support section.

Carefully look through the Forex trading exampleshereto ensure you understand how forex trading works.

View spreads, margins and commissions for City Index products

Take control of your trading with powerful platforms and tools

View upcoming trading opportunities for the weeks ahead

Trade Forex risk-free with a demo accounttry a demo

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.71% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Based on CFD spreads and financing competitor comparison on 28/08/2019.

* Spread Betting and CFD Trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.

1 point spreads available on the UK 100, Germany 30, France 40 and Australia 200 during market hours on daily funded trades & daily future spread bets and CFDs (excluding futures).

Voted Best Trading Platform, Best Mobile Application and Best Spread Betting Provider at the OPWA Awards 2019. Voted Best CFD Provider at the ADVFN Awards 2019. Voted Best Professional Trading Platform and Best Spread Betting Provider at the 2019 Shares Awards. Voted Best Cryptocurrency Trading Platform at the 2018 OPWA Awards.

City Index is a trading name of GAIN Capital UK Limited. Head and Registered Office: Park House, 16 Finsbury Circus, London, EC2M 7EB. GAIN Capital UK Ltd is a company registered in England and Wales, number: 1761813. Authorised and Regulated by the Financial Conduct Authority. FCA Register Number: 113942. VAT number: 524837435.

City Index and City Trading are trademarks of GAIN Capital UK Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

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