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Trade Forex CFDs Online

Get the best Forex Trading experience on MintCFD. Explore the Forex market and get access to all the top currency pairs.

Trade Forex on MintCFD with Maximum Benefits

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Overview of Forex Trading in India

Forex Trading, or Foreign exchange trading, refers to converting a currency’s current value for another one, and the price difference determines the profit or otherwise. A forex market is a decentralized marketplace where currencies are traded in the hope of a higher valuation for a future sale.

Transactions among traders for Forex trading are done on the Internet in a market that is open 24/7, with the most prominent financial centers being New York, Paris, Singapore, Frankfurt, Hong Kong, London and Zurich, all of which cover almost every time zone. The forex market starts in Japan and China and ends in the USA every day, thereby making it a very volatile marketplace with prices changing constantly.

  • As a consequence, a veteran forex trader has multiple opportunities in a single day to anticipate price movements and can go short and long to capitalize on his expertise.
  • In forex trading, a drop in the price of a currency pair means a rise in the valuation of another pair.
  • Usually, a forex trader uses leverage to control a larger position with a small capital, which could help them amplify profits.
  • The marketplace for forex trading is very liquid, which helps traders enter and exit their positions with ease and maintain tight spreads to protect them from market manipulation.

History of Forex Trading

  • History of Forex Trading

    The process of exchanging one currency for another is age-old, with only the currencies evolving.

    • What was once carried by merchants in international trade has today become formalized forex markets.
    • A significant evolution of forex trading took place in the 19th century when countries equaled their currencies to a specific amount of gold, and it was accepted as the international standard.

    This further changed following the Second World War after the Bretton Woods Agreement in New Hampshire, where it was unanimously decided that all major currencies would be pegged to the U.S. dollar, although currencies could still be converted to gold at a fixed rate. However, US President Richard Nixon ended the Bretton Woods system in 1971, thus bringing in the floating exchange rate system, which ensured that the value of a nation’s currency would be determined by its demand and supply.

    • What was once carried by merchants in international trade has today become formalized forex markets.
    • A significant evolution of forex trading took place in the 19th century when countries equaled their currencies to a specific amount of gold, and it was accepted as the international standard.
    • List Item

    The last few years have seen enormous technological advancements in online forex trading, with high-frequency trading and algorithmic trading becoming an integral part of it using complex strategies formulated by charting and analysis tools. The current forex market works relentlessly, featuring several currency pairs.

    Forex Trading India has significantly increased in size, shape and strength.

    Forex CFD Trading | Best Option to Trade Forex Online

    Forex trading has evolved in concept and in conception. Forex CFD Trading has become the best option to trade forex online.

    • What was once carried by merchants in international trade has today become formalized forex markets.
    • A significant evolution of forex trading took place in the 19th century when countries equaled their currencies to a specific amount of gold, and it was accepted as the international standard.

    As with other CFD trading instruments, an investor can trade Forex by entering a small margin amount to get into a larger position of investment, through leverage. The total profit incurred during the process, however, will be based on the full amount and not the margin amount. This makes Forex CFD a viable, reliable and profitable option to trade Forex.

How Forex Trading Works?

Foreign exchange trading works on multiple principles that all traders must understand. Below are the five crucial components that encapsulate this trading.

1 - Currency Pairs

In Forex trading, every pair has two different currencies – the base and quote currency.

  • An investor buys or sells the base currency while the trade is done against the quote currency.
  • For example, in the USD/INR currency pair, the INR is the base currency that one can buy or sell against the value of the quoted currency, i.e.USD.

The currency pair USD/INR shows the exchange rate between the United States Dollar and the Indian Rupee (INR). For example, if the exchange rate of USD/INR is 75.00, this means 1 US dollar converts to 75 Indian Rupees.

n the forex market, there are two kinds of prices for every currency price: the bid price and the ask price.

  • The bid price is the price at which one sells, whereas the ask price is at which a trader buys.
  • The difference between the two prices is called spread, which is the profit of the stockbroker.

A trader’s primary objective is to buy at the ask price and sell at the bid price.

What makes Forex trading one of the more popular forms of trading is leverage.

  • A trader gets to control a larger position with a small capital.
  • However, a trader needs to analyze the use of leverage as it can both amplify profits and losses.

Regardless of that, leverage is the biggest USP in Forex CFD trading.

A trader must know the entities that participate in Forex trading.

  • They include the likes of financial institutions, governments, hedge funds, banks and multinational corporations apart from the usual individual retail traders.
  • The most significant role, however, is played by the central bank, whose monetary policies and other interventions influence the exchange rates of currencies.

Regardless of that, leverage is the biggest USP in Forex CFD trading.

A trader must use both technical and fundamental analyses to make decisions in the Forex market.

  • Technical analysis involves reviewing price charts and other indicators to recognize patterns and trends.
  • Fundamental analysis entails staying up-to-date on political, geopolitical, and economic factors that most often influence exchange rates.

Categories of Currency Pairs in Forex Trading

There are three main categories of currency pairs – major, minor and exotic.

Major Pairs to Trade Forex

The major pairs are defined by their liquidity and frequency of trading, such as EUR/USD (Euro/ US Dollar), USD/JPY (US Dollar/ Japanese Yen), and GBP/USD (Great Britain Pound/ US Dollar) are major currency pairs.

 

They are the most preferred pairs among traders as they have lesser volatility than the other categories.

Minor Pairs to Trade Forex

The minor pairs or the cross-currency pairs, are the ones like EUR/GBP (Euro/ Great Britain Pound) and AUD/JPY (Australian Dollar / Japanese Yen).

 

These have lesser liquidity compared to the major currency pairs and are lesser traded as well.

Exotic Pairs to Trade Forex

The exotic currency pairs are rarely traded in the forex market. These currencies are mostly from smaller or emerging economies, like USD/TRY (US Dollar / Turkish Lira) or EUR/SGD (Euro / Singapore Dollar).

 

The exotic pairs are the most volatile and have wider spreads.

How profit is made in Forex Trading?

Traders anticipate whether the exchange rate of a currency pair will appreciate or depreciate soon and take a position as per their prediction.

 

Investors can make profits from two places:

 

Either from the exchange rates or

The difference in interest rates of two currency pairs

Top Forex Currency Pairs to Trade on MintCFD

Here are the top currency pairs available for Forex CFD trading. What makes MintCFD the best Forex Broker for CFD trading is the availability of all these top currency pairs to trade forex.

AUD/USD

At times referred to as the “Aussie” pair, the AUD/USD is the Australian dollar against the US dollar. The value of Australia's exports, which include metal and mineral exports like coal and iron ore, directly influences the Australian dollar.

These exports contribute a sizable amount to the nation’s GDP, and the Australian dollar could likely decline in value if the global market value of these commodities falls.

In such a scenario, the US dollar will become stronger, and a trader would require fewer USDs to buy one AUD.

Inversely, it would take more USD to buy one AUD if the interest rates in America fall.

The AUD/USD exchange rate is affected by the difference in interest rates between the Reserve Bank of Australia and the US Federal Reserve.

CAD/USD

Only eight currencies contribute to over 80% of the forex market, and the Canadian dollar features in it, with CAD being the sixth-most held currency as a reserve.

Though the 10th-ranked economy of Canada doesn't seem to form a major currency pair, the country has the 12th-largest export economy, making its currency significant.

All major currencies in the forex market are supported by a central bank; for CAD, it is the Bank of Canada.

The Bank of Canada had last intervened in the nation's currency in 1998 and has since refrained from it.

The primary exchange of CAD for U.S. dollars happens while paying bills, whether tuition payments, personal shopping, or even transactions back home

CHF/USD

Being one of the major pairs in the forex market, the Swiss Franc and U.S. Dollar form a desirable option given their huge daily trading volumes, tighter spreads and high liquidity.

 

The biggest USP of CHF/USD is that it is inversely proportional to global economic stress, when its value often rises as Switzerland is financially and politically stable.

 

The CHF/USD pair is influenced by economic indicators including employment data, GDP and other such developments.

 

The differential interest rate between the Federal Reserve (FED) and the Swiss National Bank (SNB) also influences this currency pair.

EUR/USD

The most traded currency pair on the forex market, the EUR/USD transactions made up almost 24% of the daily trade in 2019.

Representing two of the biggest economies in the world, this currency pair has extreme liquidity, resulting in tight spreads - the two most enticing factors for a forex trader.

There are numerous factors determining the exchange rate of EUR/USD, the foremost of which is the interest rates set by the European Central Bank (ECB) and the US Federal Reserve (Fed).

Overall, it is one of the most trusted currency pairs as it is less affected by market volatility.

GBP/USD

Popularly known as the “cable” account owing to the deep-sea cables that were once used to carry bid and ask quotes between London and New New York, the GBP/USD made up 9.6% of daily forex transactions in 2019.

Yet another popular and frequently-traded currency pair in the forex market, it derives its value from the relative strengths of Great Britain and USA economies.

The exchange rate of this pair is influenced by the interest rate set by the Bank of England and the Federal Reserve.

USD/INR

While the USD/INR isn’t among the major currency pairs, it is one of the significant cross-currency pairs nudged up by traders with business and investment exposure in India.

 

Economic and political developments in either country have been known to affect the exchange pair, apart from the interest rate set by the Reserve Bank of India and the Federal Reserve.

 

RBI has been known to intervene in the forex market to manage Indian Rupees’ value from time to time, and traders should be mindful of the same.

 

The USD/INR is an attractive pair for hedging against currency risk and it is popular among traders owing to the high volatility and liquidity of the Indian rupe

How to Trade Forex CFD? Step-By-Step Guide to FX Trading

There are familiar steps for an investor to follow: researching, settling on a reliable broker, adding funds to the trading account, and executing trades. Below are the steps to follow to execute proper Forex CFD trading

1. Education and Research

It is crucial to read up on the forex market, currency pairs, and the operation of CFDs before one begins forex CFD trading. Familiarizing with fundamental trading ideas, including leverage, margin, and risk control is quintessential. Before even getting into any CFD forex trading platform, understand all the components of Forex trading.

2. Select a Reliable Broker

Selecting a trustworthy forex broker that provides forex CFDs will directly influence your experience. Hence, it is wise to go for licensed brokers and have a simple trading interface. Choose MintCFD as your Forex CFD Partner, as you can get the maximum benefits to trade Forex.

3. Create an Account

This is fairly simple. One can sign up with the broker, submit the relevant paperwork, and through the identification verification process demanded by regulatory bodies.

4. Fund Your Account

Before one enters funds in their trading account for a deposit, it is advised to check and fulfil the minimum deposit requirements. Then, pick a sum that feels right.

5. Choose Currency Pairs

Choosing a currency pair isn’t as simple as it seems. While picking the major currency pairs, which are highly traded and liquid in nature, is a common move, one should have a trading strategy to see what best aligns with their end goal.

6. Analyze the Market

One must analyze both the technical and fundamental aspects of a forex market before making trading decisions. To analyze changes in currency prices, use tools such as charts, indicators, and economic calendars.

7. Develop a Trading Strategy

Create a clear and well-defined trading strategy. Determine your entry and exit points, risk tolerance, and position sizes. Stick to your strategy to minimize emotional trading.

8. Practice with a Demo Account

Most CFD brokers will have a provision for a demo account to practice Forex CFD trading, where one can understand their strengths and weaknesses while practicing without the risk of losing real money.

9. Risk Management

To prevent losses and increase the chances of profits, use stop-loss and take-profit orders. The size of a stake should be determined based on one’s risk tolerance and the size of the trading account.

Forex Trading Tips and Strategies

As exciting as Forex Trading is, one would require proper understanding, a thorough strategy and a decent amount of practice before getting down into it. Here are a few tips and strategies that every trader should follow while trading in Forex

Get Know-how of Forex Trading

Every trader must first understand the nitty-gritties of forex trading, whether it be about the marketplace, the various trading strategies, the multiple different analyses or risk management plans. One can get access to them from books or online courses, which help one get a basic idea of how foreign exchange works.

Make a Plan

The very first step towards creating a plan is to understand one’s trading goals and end objectives. This involves understanding a trader’s risk tolerance, devising an entry and exit strategy and formulating money management rules. The more comprehensive and foolproof the plan, the more a trader would remain disciplined and refrain from making emotional decisions.

Practice on Demo Account

It is a luxury that modern traders have. Before getting into the deep waters and risking capital, one can use demo accounts to practice his or her plan. These accounts allow one to practice trading with virtual money and gain experience, which is a great way to hone one’s trading skills and gain confidence.

Don’t forget risk-management techniques

The most neglected step in any form of trading is this. A trader must learn effective risk management techniques, where one won’t take more chances than they can afford. A helpful tool here is to use stop-loss and take-profit orders, which limits the chances of making a loss and locking profits.

Pick a Trading Plan

A trader has multiple trading strategies to pick from in Forex Trading, which includes Day Trading, Swing Trading, Scalping and Long-term investing. Not only should a trader know which strategies suit their trading goals, but one should also be ready to adapt to the market conditions and change strategy as and when needed.

Forex Trading Calculator

Also known as a pip calculator, a forex calculator is used to determine the value of a price movement in a currency pair. It aids traders in estimating profits, managing risk, and sizing positions by assisting them in calculating the monetary impact of price movements in the forex market.

 

A Forex calculator's main output is the "pip," or percentage in points, which is also called "point."

The lowest possible price change in a currency pair is represented by a pip, which is a defined unit of price movement in foreign exchange trading.

The size of the position and the particular currency pair being traded determine a pip's value.

Pip’s value can be calculated by the following formula:

 

Monetary Value of 1 Pip = (Pip Value / Exchange Rate) * Position Size

Things to know in a Forex Trading Calculator

You can use our free Forex Calculator; however, understand the key concepts involved in Forex trading.

Pip Value:

The worth of a single pip changes based on the particular currency pair and the position’s size. A pip is usually equivalent to 0.0001, or 1/100th of a cent, for the majority of significant currency pairs, however, there are some outliers.

Position Size:

The trading position’s size is stated in lots. In forex, a mini lot is 10,000 units, and a micro lot is 1,000 units. A standard lot is usually 100,000 units of the underlying currency.

Exchange Rate:

This is the current exchange rate of the currency pair that a trader is trading.

Example of how Forex is calculated

For instance, if the exchange rate is 1.1000 and you are trading one standard lot (100,000 units) of EUR/USD, the pip value for this deal would be:

Pip Value = (0.0001 / 1.1000) * 100,000 = $9.09

This implies that for a one-lot transaction, your profit or loss would be roughly $9.09 for every pip fluctuation in the EUR/USD pair.

Best Forex Trading App | MintCFD Fx Trading

Our forex trading app offers unique features and is specially designed to provide a user-friendly interface, where users can navigate charting tools, order execution capabilities, real-time market data, and various other features easily to support forex trading activities on the go.

From getting the live streaming of currency exchange rates to various technical indicators, we offer everything that a trader needs on a forex trading app. Apart from ordering various types of orders and monitoring their accounts 24/7, a trader also gets every market update in our app.

Forex Trading Demo

Our platform also provides a simulated forex trading demo account, where one can practice trading and gain experience without risking real money. It can be helpful for both beginners and experienced traders.

Below are the benefits of using our Forex trading demo account:

Risk-Free Learning

With traders not using their real money, all the learnings from our forex trading demo app are risk-free and one can execute orders and implement strategies with virtual money. Nothing builds confidence and hones skills as demo accounts do.

Currency Pair Selection

A trader can experience different currency pairs and observe their behaviour in the ever-changing market and how the pair correlates to each other. This is a significant experience before starting live trading.

Familiarizing with market

Another huge benefit of having a demo Forex account is that a trader can test the waters without having to lose anything. Hence, the market volatility won’t affect his or her plans and one will get a real-life feel of live trading. It will also give you a fair idea about the forex trading charts.

Platform Evaluation

Operating on one’s forex trading demo account is a great way to understand the user interface and navigation of our forex trading app, which will help you make quick decisions during live trading.