Trading forex (FX) is one of the most popular ways to trade CFDs. With the daily markets reacting to geo-political and economic stimulus, it’s a great way to speculate the world events. The FX CFD derivatives market is made up of buyers and sellers, the main participants being large international banks, who place orders via electronic trading systems. This market is traded OTC (not traded on any regulated exchange) and as such there is no uniform price but each of the main international banks is providing its own quotes with the spot market acting as the point of reference for the quotes provided.

Contracts for difference (CFDs), allow traders to buy (go long) or sell (go short), and make profit or loss from price movements, without having to physically purchase and exchange the underlying currency.