Bobby Ward, director at Vorto Trading, answers your top foreign exchange questions
How does the FX market differ from other markets?
Unlike stocks, futures or options, currency trading does not take place on a regulated exchange. It is not controlled by any central governing body, there are no clearing houses to guarantee the trades and there is no arbitration panel to adjudicate disputes. Members trade with each other based on credit agreements. This arrangement works really well. Self regulation provides very effective control over the market because participants in FX must both compete and cooperate with each other.
There are also no limits on the size of your position (as there are in futures); so in theory you could sell £100 billion worth of currency if you had the capital.
The FX market doesn’t sleep so there tends to be a large amount of data that can be used to gauge future price movements. This makes it the perfect market for brokers that use technical tools. At Vorto, our market leading technical platform allows our clients to manage their trades in a transparent and informed way. The team are always on hand to share their market knowledge. We take customer service and satisfaction seriously.
What is a Pip in FX Trading?
A pip is a ‘percentage in point’ and the smallest increment you can trade in FX.
For example, if an item in a shop was priced at £1.20, in the FX market the same item would be quoted at 1.2000. The change in that fourth decimal point is called 1 pip and is typically equal to 1/100th of 1%.
That’s why at Vorto we always quote to 4 decimal places.
Which currencies are traded in FX?
There are seven most liquid currency pairs in the world. While most trades are within those 7 pairs, Vorto Trading has the ability to trade across all currencies and we have the expertise in house to do so. Our team work with you to help you navigate the challenges of foreign exchange, even if you wish to trade in a more unusual currency. Please call our team to discuss your options.
There are four majors:
and the three commodity pairs:
While other currencies are available to trade, over 95% of all trades are within these 7 pairings.
Why Vorto Trading?
Vorto Trading put customer understanding and experience at the forefront of their business. It is vital to Vorto to build a strong customer relationship in order to provide the best possible information and service. Vorto’s state of the art digital platform allows the customer to see the whole picture live in a transparent and timely manner, without losing the human touch. Our team of traders watch and monitor the market, in order to be able to relay information and data to the client, while understanding the client’s whole needs. Working in partnership with Vorto Trading gives you access to an experienced team who can offer help and support with your FX trades, therefore negating some of the risk to you and your business, smoothing the way for you to focus on your core activates and manging your own business.