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Ways to trade forex

Ways to trade forex

There are two popular ways to trade forex markets; with derivative products and via a forex broker.

What are forex derivatives?

Derivative products track an underlying currency market so that traders can speculate on whether the price will rise or fall. The most popular forex derivatives are spread bets and CFDs.

Spread betting

A forex spread bet enables you to speculate on the future price direction of a currency pair. Your profit or loss is dictated by how far the market moves in your favour before you close your position and how much money you have put up per point of movement.
A benefit of spread betting is that it’s completely tax-free .1

CFD trading

A forex CFD is an agreement to exchange the difference in the price of a forex pair from when you open your position to when you close it. If the market price moves in your chosen direction, you would profit, and if it moves against you, you would make a loss.
Any CFD losses can be used to offset capital gains elsewhere.1
Ready to trade forex? Open a live account today,

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