Forex Overview

The spot foreign exchange market (also called “Forex” or “FX”) is not traded on exchange but rather accomplished over-the-counter by two counter parties. Initially, Forex was traded “Interbank” since trading was conducted only by banks trading with each other. However, with the development of information systems and technology, financial institutions introduced margin trading on foreign exchange at more competitive terms. At present, the majority of foreign exchange transactions are performed by speculators. Institutional investors, funds and government institutions contribute to the rest of the market participants.
Prideforex ’s CFDs derive their price from the underlying asset. You can trade CFDs if you believe the price of a financial instrument is likely to go up in value (strengthen) and if you think it is likely to go down (weaken). Your profit or loss in online CFD trading is determined by the difference between the price you buy at and the price at which you sell.