Currency Trade, Forex Trade, FX Trade – these are all terms used to describe the exchanging of one currency for another; for example, the exchanging of U.S. Dollars to British Pounds. In the foreign exchange market, this is viewed as buying pounds while simultaneously selling dollars*. Because two currencies are always involved, currencies are traded in the form of currency pairs, with the pricing based on the exchange rate offered by dealers in forex trading market.
*This refers to the foreign exchange market. Trading of OANDA's product is a derivative and does not involve any transactions in the underlying instruments
This is for general information purposes only - Examples shown are for illustrative purposes and may not reflect current prices from OANDA. It is not investment advice or an inducement to trade. Past history is not an indication of future performance.
Trading FX and/or CFDs on margin is high risk and not suitable for everyone. Losses can exceed investment.