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“Forex: global opportunities, 24 hours a day.”

Forex (Foreign Exchange Market)

The largest and most liquid financial market in the world. It trades 24 hours a day, connects every global economy and moves more than $6 trillion daily. Discover how to take advantage of currency swings with strategy, analysis and professional execution.

$6.6TDaily Volume
24/5Market Open
180+Pairs Available

What Is the Forex Market?

Forex (Foreign Exchange) is the decentralized global market where the world's currencies are traded. It is the largest and most liquid financial market on the planet, with a transaction volume of more than $6.6 trillion dollars a day.

Unlike other financial markets, Forex has no centralized physical location. It operates electronically through a global network of banks, financial institutions, corporations, governments and individual traders, 24 hours a day, 5 days a week.

In Forex you always trade in currency pairs: when you buy one currency, you are simultaneously selling another. For example, in the EUR/USD pair, if you believe the euro will strengthen against the dollar, you buy euros and automatically sell dollars.

With STX Markets you access this institutional market with competitive spreads, ultra-fast execution, professional analysis and no conflicts of interest.

Types of Currency Pairs

Pairs are classified by their liquidity, trading volume and the participation of the world's leading currencies

Major Pairs (Majors)

The 7 most liquid pairs in the world, all of which include the US dollar (USD). They account for 75% of Forex's total volume.

Examples:
  • • EUR/USD - Euro / Dollar
  • • GBP/USD - Pound / Dollar
  • • USD/JPY - Dollar / Yen
  • • USD/CHF - Dollar / Franc
  • • AUD/USD - Australian Dollar
  • • USD/CAD - Canadian Dollar
  • • NZD/USD - New Zealand Dollar

Minor Pairs (Minors)

Also called “crosses”, they combine the world's leading currencies without including the USD. They offer good liquidity and moderate volatility.

Examples:
  • • EUR/GBP - Euro / Pound
  • • EUR/JPY - Euro / Yen
  • • GBP/JPY - Pound / Yen
  • • EUR/CHF - Euro / Franc
  • • AUD/JPY - Australian Dollar / Yen
  • • GBP/CHF - Pound / Franc

Exotic Pairs

They combine a major currency with one from emerging or smaller economies. Higher volatility and wider spreads, but with unique opportunities.

Examples:
  • • USD/MXN - Dollar / Mexican Peso
  • • USD/TRY - Dollar / Turkish Lira
  • • EUR/PLN - Euro / Polish Zloty
  • • GBP/ZAR - Pound / South African Rand
  • • USD/THB - Dollar / Thai Baht

Most Traded Currency Pairs

The most liquid and popular instruments in the Forex market, with ultra-competitive spreads and instant execution

EUR/USD

Euro / US Dollar

The most traded pair in the world, it accounts for more than 24% of Forex's total volume. It is the barometer of the European economy against the US economy.

Influenced by the policies of the ECB (European Central Bank) and the Fed (Federal Reserve), as well as economic data from the Eurozone and the US.

💧 Maximum Liquidity📊 Low Spread🌍 Global
24%Global Volume
0.6 pipsTypical Spread

GBP/USD

British Pound / Dollar

Known as “The Cable”, it is one of the most volatile pairs among the majors. Historically used for transatlantic transactions since the 19th century.

Highly sensitive to British economic news, Bank of England (BoE) decisions and post-Brexit trade relations.

⚡ High Volatility🎯 Strong Trends📈 Wide Moves
11%Global Volume
1.2 pipsTypical Spread

USD/JPY

Dollar / Japanese Yen

Asia's most important pair, it reflects the relationship between the two largest Pacific economies. Highly liquid during the Asian session.

Sensitive to Bank of Japan (BoJ) monetary policy, Japanese manufacturing data and global risk sentiment.

🌏 Leader in Asia💹 Carry Trade⚖️ Safe Haven
14%Global Volume
0.8 pipsTypical Spread

USD/CHF

Dollar / Swiss Franc

Known as “Swissie”, it is considered a safe-haven asset in moments of global uncertainty thanks to Swiss stability.

Influenced by Swiss National Bank (SNB) policy, Swiss political stability and global risk-aversion sentiment.

🛡️ Safe Haven🏦 Stability💼 Institutional
5%Global Volume
1.0 pipsTypical Spread

AUD/USD

Australian Dollar / Dollar

Called the “Aussie”, it is highly correlated with commodity prices, especially gold and iron ore, Australia's main exports.

Sensitive to economic data from China (its main trading partner), RBA (Reserve Bank of Australia) interest rates and commodity prices.

⛏️ Commodities🇨🇳 China Proxy💰 High Interest
5%Global Volume
1.0 pipsTypical Spread

USD/CAD

Dollar / Canadian Dollar

Known as the “Loonie”, it has a strong inverse correlation with oil prices, since Canada is a major crude exporter.

Influenced by US and Canadian economic data, Bank of Canada (BoC) policy and WTI oil prices.

🛢️ Oil🤝 Neighbors📊 Correlation
4%Global Volume
1.2 pipsTypical Spread

Key Concepts for Trading Forex

Master the language of the world's most liquid market and trade with professional knowledge

Pip (Point in Percentage)

It is the smallest unit of price change in a currency pair. For most pairs, 1 pip = 0.0001. For example, if EUR/USD rises from 1.1000 to 1.1001, it has moved 1 pip.

Spread

It is the difference between the buy price (ask) and the sell price (bid). It is the cost of the transaction. A 1-pip spread on EUR/USD means you pay 1 pip to open the position.

Lot

It is the unit of measurement for the size of a trade. 1 standard lot = 100,000 units of the base currency. There are also mini lots (10,000), micro lots (1,000) and nano lots (100).

Leverage

It lets you control a large position with a small amount of capital. With 1:100 leverage you can control $10,000 with just $100. It amplifies both gains and losses.

Margin

It is the capital you need to keep a position open. If you trade with 1:100 leverage, the required margin is 1% of the total value of the position.

Stop Loss

An order that automatically closes your position when the price reaches a predetermined loss level. It is your safety net to protect your capital.

Take Profit

An order that automatically closes your position when you reach your profit target. It lets you lock in gains without sitting in front of the screen.

Swap (Rollover)

It is the interest charged or paid for holding a position open overnight. It depends on the interest-rate differential between the two currencies in the pair.

Trading Sessions and Global Hours

The Forex market runs 24 hours a day, 5 days a week, thanks to the different time zones

Sydney Session

Hours: 22:00 - 07:00 GMT (10:00 PM - 7:00 AM)

Characteristics: The first session to open. Moderate volatility, ideal for Oceania pairs (AUD, NZD). Lower liquidity compared with other sessions.

Best Pairs: AUD/USD, AUD/JPY, NZD/USD

🌅 Global Open

Tokyo Session

Hours: 00:00 - 09:00 GMT (12:00 AM - 9:00 AM)

Characteristics: The most important Asian session. High activity in JPY pairs. Smooth, predictable moves. Influenced by Chinese and Japanese economic data.

Best Pairs: USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY

🏯 Asian Session

London Session

Hours: 08:00 - 17:00 GMT (8:00 AM - 5:00 PM)

Characteristics: The most active and liquid session, accounting for 43% of Forex's total volume. Large moves, lower spreads. Overlaps with Tokyo and New York.

Best Pairs: EUR/USD, GBP/USD, EUR/GBP, USD/CHF

👑 King of Sessions

New York Session

Hours: 13:00 - 22:00 GMT (1:00 PM - 10:00 PM)

Characteristics: The second most active after London. Maximum volatility during the overlap with London (13:00-17:00 GMT). US economic data releases.

Best Pairs: EUR/USD, GBP/USD, USD/CAD, USD/JPY

🗽 Wall Street Power

⚡ Peak Liquidity Windows:

• London + Tokyo (08:00-09:00 GMT): Asian-European overlap, ideal for JPY and AUD pairs.
• London + New York (13:00-17:00 GMT): The MOST ACTIVE moment of the day. Higher liquidity, minimum spreads and explosive moves. Perfect for scalping and day trading.
• Best Time to Trade: Monday to Thursday during the London-NY overlap. Fridays can be unpredictable because of the weekly close.

Common Forex Trading Strategies

Different approaches for different trader profiles: from ultra-fast to long term

Scalping

Ultra-fast trades lasting seconds or minutes. The goal is to capture small 5-10 pip moves several times a day.

Advantages: Fast gains, many opportunities, low risk per trade.

Disadvantages: Requires constant attention, commissions can add up, high psychological pressure.

Ideal for: Full-time active traders with a fast connection and disciplined psychology.

⏱️ Ultra-Short Term

Day Trading (Intraday)

Opening and closing every position within the same day, without holding overnight. Targets of 20-80 pips per trade.

Advantages: No overnight gap risk, no swaps, takes advantage of intraday moves.

Disadvantages: Requires time during market hours and constant technical analysis.

Ideal for: Traders with 2-4 hours a day available and technical analysis knowledge.

📅 Short Term

Swing Trading

Holding positions open for several days or weeks, capturing “swings” or complete market moves. Targets of 100-500 pips.

Advantages: No need to sit in front of the screen, less stress, takes advantage of major trends.

Disadvantages: Exposure to gaps and overnight events, swap costs, requires patience.

Ideal for: Traders with full-time jobs, medium-term investors.

📆 Medium Term

Position Trading

Holding positions for weeks, months or even years, based on fundamental analysis and global macroeconomic trends.

Advantages: Minimal daily supervision, captures mega trends, fewer trades = fewer commissions.

Disadvantages: Requires more capital, cumulative swaps, adverse moves can be wide.

Ideal for: Institutional investors, traders with a macro view and solid capital.

📈 Long Term

Carry Trade

Buying a high-interest-rate currency and selling a low-rate one, generating positive swap income for every day you hold the position.

Advantages: Daily passive income, exploits rate differentials, low volatility.

Disadvantages: Works only in calm markets, risk of trend reversal.

Ideal for: Conservative investors, low-volatility markets.

💵 Compound Interest

News Trading

Trading immediately before, during or after major economic announcements (interest rates, NFP, GDP, inflation).

Advantages: Explosive moves in seconds, high volatility = high potential.

Disadvantages: Extremely high risk, spreads widen, slippage, requires experience.

Ideal for: Experienced traders with nerves of steel and capital to absorb volatility.

💥 High Risk/Reward

Factors That Affect Currency Prices

The Forex market is influenced by multiple economic, political and psychological variables

Interest Rates

The MOST IMPORTANT factor. Central banks (Fed, ECB, BoE, BoJ) adjust rates to control inflation. High rates strengthen the currency, low rates weaken it.

Inflation

A generalized rise in prices reduces a currency's purchasing power. High inflation weakens the currency if it is not controlled. Central banks respond by raising rates.

Economic Data

GDP, employment (NFP), retail sales, manufacturing, consumer confidence. Positive data strengthens the currency, negative data weakens it. Released monthly.

Political Stability

Elections, changes of government, protests, wars. Political uncertainty weakens the currency. Investors seek shelter in stable currencies (USD, CHF, JPY).

Trade Balance

The difference between exports and imports. A trade surplus strengthens the currency (more foreign demand). A deficit weakens it.

Market Sentiment

Risk-On (risk appetite) favors high-yielding currencies (AUD, NZD). Risk-Off (risk aversion) strengthens safe havens (USD, JPY, CHF).

Central Bank Intervention

Banks can buy/sell their own currency to control volatility or manage the exchange rate. It creates abrupt, unexpected moves.

Correlations with Commodities

AUD and NZD correlate with gold. CAD with oil. Rising commodities strengthen these currencies. Exporting economies benefit from high prices.

Practical Examples of Forex Trades

Real scenarios to understand how currency trades work and what their potential is

1

Long Trade (Buy) on EUR/USD

Scenario: The European Central Bank (ECB) announces higher interest rates than expected. You anticipate the euro will strengthen against the dollar.

Your Decision: You buy 1 standard lot (100,000 EUR) of EUR/USD at 1.1000.

Capital Required: With 1:100 leverage you only need $1,100 of margin (1% of $110,000).

Stop Loss: You place it at 1.0950 (-50 pips of protection = $500 of maximum risk).

Take Profit: You place it at 1.1100 (+100 pips target = $1,000 of profit).

📊 Result:

The pair rises to 1.1100 and your Take Profit is executed. You made 100 pips = $1,000 USD on a margin investment of $1,100. Return: +90.9% on a single trade.

2

Short Trade (Sell) on GBP/JPY

Scenario: You spot a clear downtrend in GBP/JPY. UK economic data is weak and the Japanese yen is strengthening as a safe haven.

Your Decision: You sell 0.5 lots (50,000 GBP) of GBP/JPY at 188.00.

Capital Required: With 1:50 leverage you need $1,880 of margin.

Stop Loss: You place it at 189.50 (+150 pips of protection = $600 of maximum risk).

Take Profit: You place it at 185.00 (-300 pips target = $1,200 of profit).

📊 Result:

The pair falls to 185.00 and your Take Profit is executed. You made 300 pips = $1,200 USD with $1,880 of margin invested. Return: +63.8% on the trade.

3

Carry Trade on AUD/JPY

Scenario: Australia has an interest rate of 4.35% while Japan keeps a rate of -0.10%. You decide to take advantage of this rate differential.

Your Decision: You buy 1 standard lot of AUD/JPY at 95.00 and hold it for 1 month.

Capital Required: With 1:100 leverage you need $950 of margin.

Positive Swap: You earn approximately $12 USD a day for holding the position (rate differential).

Pair Movement: During the month, the pair rises from 95.00 to 97.00 (+200 pips).

📊 Result:

You made 200 pips = $1,600 USD from the price move, PLUS $360 USD in swaps (30 days x $12/day). Total: $1,960 USD of profit with $950 of margin. Return: +206% in 1 month.

⚠️ Risks and Important Considerations

  • Leverage Risk

    Leverage amplifies both gains and losses. With 1:100 leverage, a 1% drop in your position means a 100% loss of your margin. Never use leverage without fully understanding its implications.

  • Extreme Volatility

    Currency pairs can experience violent moves within seconds, especially during major economic news or geopolitical events. A sharp move can wipe out your account if you do not use a stop loss.

  • Slippage

    In moments of high volatility, your order may be executed at a price different from the one requested, resulting in larger losses or smaller gains. Especially common in news trading.

  • Margin Call and Liquidation Risk

    If your losses reduce your available margin below the maintenance level, your broker may automatically close your positions (liquidation). Never risk more than 2-3% of your capital per trade.

  • Psychological and Emotional Risk

    Trading can generate stress, anxiety and impulsive decisions. Greed and fear are the trader's greatest enemies. It is essential to trade with discipline, a clear plan and emotional control.

  • Weekend Gaps

    The market closes on Friday and opens on Monday. Over the weekend, events may occur that cause a “gap” (opening at a price very different from the close). If you keep positions open, this can generate instant losses.

  • It Is Not a Get-Rich-Quick Scheme

    Forex requires education, practice, rigorous analysis and risk management. 70-90% of beginner traders lose money. Only trade with capital you can afford to lose. It is not a game, it is professional investing.

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