How to Start Trading Forex: Free Beginners Guide

LONDON, May 23, 2012 /PRNewswire/ --

Want to trade forex but don't know where to start? Use our free beginners guide to learn about the forex market, how to trade it and who you can trade it with.

Introduction to Trading Forex

Key features of trading forex with City Index include:

• Exposure to 37 spot forex markets
• Access to powerful online, downloadable, mobile and tablet trading platforms
• Ability to change your leverage ratio from a scale of 20:1 to 400:1

Forex trading accounts - such as the one available through City Index - are designed to enable you to receive a tailored service dedicated to trading the foreign exchange market for only a small initial deposit.

Here we explain this feature in more detail:

Forex Trading Leverage

As a leveraged - also known as 'margined' - product, to trade forex with City Index, you are only required to make a small initial deposit which is a percentage of the full value of your position.

Therefore, your potential profits - and losses - are magnified from an initial capital outlay when compared to more traditional forms of trading.

How to Trade Forex

As one of the most liquid and widely traded markets in the world, forex enables investors - both new and experienced - to take a position on the future direction of a pair by buying or selling the exchange rate of one currency against another.

For example, let's look at the GBP/USD currency pair; if you were to 'buy' this pair, it would mean you were buying the first currency (GBP) and selling the second (USD) with the expectation that the cross rate price between the two will rise in value - meaning your profits will rise in line with any increase.

Alternatively, if you think that the cross rate between the two would fall - then you would sell GBP/USD. This means that you would be selling the first (GBP) and buying the second (USD) currency in the pair.

Start Trading Forex

It's quick and easy to apply for a forex trading account with City Index.

Through their website, you can access a suit of trading education tools and resources - as well as a risk management tools for limiting losses whilst trading.

It is important you remember that as a leveraged product, trading forex can result in losses greater than your initial deposit. Ensure you fully understand the risks involved.

Why do Investors Choose to Trade Forex with City Index?

Today more and more individual investors are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support.