INVESTMENT OPPORTUNITY IN FOREX, FOREX OPTIONS & COMMODITY MARKETS SINCE 1988.


FOREX BROKER
FOREX OPTIONS BROKER
COMMODITY FUTURES BROKER


INTRODUCTION TO FOREX

"Forex" and "FX" are simply abbreviations of "foreign exchange" and in the context of this website generally refers to off-exchange retail foreign currency markets.  The forex market is not a "market" in the traditional sense due to the fact that there is no centralized location for forex trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC) or "off exchange".

IMPORTANT NOTE:  CFOS/FX customers transact in off-exchange retail forex markets and NOT the interbank market.  The true forex interbank market is a cash interbank/interdealer market in which currencies are traded directly between banks, foreign currency dealers and individual investors with larger-sized accounts than the typical retail account.  To be a true interbank market participant, one must be trading directly with the banks and other interbank market participants.

Customers must understand that the respective FCM/OTCFX Dealer holding the customer's funds also provides the quotes to the customer and acts as counterparty to the customer's trades.  Therefore, the customer trades with the FCM/Dealer and is not a direct trading participant in the forex interbank market.  

CFOS/FX clients can trade through online forex trading platforms and/or over the telephone.  Margins for forex trading are generally 2% of the contract value, but may vary by FCM/Dealer.  It is important to note that highly leveraged trading is a double-edge sword and can lead to large losses as well as gains.  For more information about margins and leverage, please click the following links:  how margins work  risk disclosures  

 

Five major currencies dominate trading in the foreign exchange markets: the U.S. Dollar, Eurocurrency, Japanese Yen, Swiss Franc and British Pound.  The foreign currencies are traded in pairs, also known as crosses, in the forex spot market.  For example, purchasing the EUR/USD in the forex spot market simply means the purchaser is buying the Eurocurrency and selling the U.S. Dollar in anticipation of the Eurocurrency gaining value in relation to the U.S. Dollar.  Similarly, the seller of a EUR/USD contract would be selling the Eurocurrency against the U.S. Dollar.  The "spot" market simply refers to a currency contract with a prompt valuation date requiring settlement within two business days.

 

Over the past several decades, an increase in international trade and foreign investment has made the economies of the world more interrelated.  New opportunities for investors have also been created with the fall of communism and the dramatic growth of the Asian and Latin American economies.  Today, supply and demand for a particular currency is the driving factor in determining exchange rates.  Many factors such as regularly reported economic figures and unexpected news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency. 

 

 

 

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Disclaimer: Forex options trading and forex spot trading carry a high level of risk and are not suitable for everyone.  The possibility exists that you could sustain a loss of all or more of your forex trading investment.  Before trading forex options or spot markets you should be aware of all risks associated with forex trading.  For more information about the forex option trading risks, forex spot and online forex trading risks please contact a CFOS/FX forex option broker to discuss online forex option trading and spot trading risks in detail.  CFOS/FX is a forex option broker and forex spot broker offering online forex trading platforms in both spot forex and forex option trading markets.  The brokers at CFOS/FX broker forex spot and broker forex option trading for retail and commercial forex clients.  CFOS/FX acts only as a forex introducing broker and does not actively manage forex trading accounts for clients.  Regarding forex counterparty, CFOS/FX is a forex option broker and spot forex broker acting an forex introducing broker and not as counter-party for client forex spot trading or forex option trading.  The respective FCM/Dealer holding client funds acts as counterparty.

 
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