Top CTA Currencies Hub

Currency CFD Trading

Currency trading overview

What is currency trading? Essentially, it’s the act of buying and selling currencies, exchanging one currency for another. For many years people have traded currencies – whether for use while traveling to different countries, or as a means of investment. Today, many people choose to trade the price of currencies, in the form of CFDs.
 
There are many types of currencies around the world, and their price commonly reflects the situation of the economy of the country they belong to. Currency traders commonly use economic reports and financial news to collect information about the specific currency they want to trade, attempting to predict its future price movements.

Trading currencies in the form of CFDs

Years ago, currency trading on a large scale was almost only performed by large investors, such as banks, or even, in some cases, governments. Nowadays though, many people trade currencies online, in the form of CFDs (Contracts For Difference). When you trade currency CFDs, you don’t need to actually buy and sell the currencies in order to participate in the currency market. Instead, you invest in their price.
 
Remember: When you trade currency CFDs, you are always selling one currency and buying another. This is why currencies are traded one against the other - in pairs. Vestle offers a wide variety of currency pairs from all over the world, allowing for portfolio diversification, which minimizes risk.


Instrument Sell Buy Change
Instrument Sell Buy Change
EUR/USD
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Instrument Sell Buy Change
Instrument Sell Buy Change
Instrument Sell Buy Change
Instrument Sell Buy Change
Instrument Sell Buy Change

Short trading vs. long trading

When you trade currency CFDs, you can trade in both directions - up or down - and can open trades that match your expectation whether the price of a specific currency will increase or decrease. If you think the price will decrease, simply open a ‘Sell’ (short) deal. If you think it will increase, simply open a ‘Buy’ (long) deal.

Opening a currency CFD deal with Vestle

It doesn’t matter if you want to trade via your PC, smartphone or tablet, the Vestle trading platforms and app enables you to open deals in a few, convenient steps:
  1. Choose a currency pair CFD
  2. Set your deal size
  3. Choose direction (Buy or Sell)
  4. Open your deal
Remember: You can also set limit orders such as Take Profit and Stop Loss. That means you can set the limit in which your deal automatically closes. This allows you to manage your deals even when you’re not online, as well as to better manage multiple deals simultaneously.
 
Vestle offers many useful trading tools that can assist you in managing and monitoring your trades, including educational resources, information and market indicators. We also provide updates via our Economic Calendar, notifications and live rates.
 


Factors that could affect currency prices include:

  • Inflation
  • Economic data
  • Unemployment data
  • Quantitative easing measures
  • National deficits
  • Politics/geopolitics
  • Natural disasters
  • The price of major currencies such as the USD

Leveraged currency trading

When you trade with Vestle, you can use a trading tool called leverage. Leverage allows currency CFD traders to boost their trading power, while also increasing risk.
 
Here’s a quick example:
With a €500 investment, you can open deals worth up to €15,000, using leverage of 30:1.
Leverage allows you to open large deals with a relatively small investment, but since it’s also a risky trading tool, it should only be used with sufficient training and knowledge.
 


Most popular currency CFDs

AUD/USD
Australian Dollar vs. US Dollar
EUR/JPY
Euro vs. Japanese Yen
EUR/USD
Euro vs. US Dollar
GBP/JPY
British Pound vs. Japanese Yen
GBP/USD
British Pound vs. US Dollar
NZD/USD
New Zealand Dollar vs. US Dollar
USD/CAD
US Dollar vs. Canadian Dollar
USD/CHF
US Dollar vs. Swiss Franc
USD/JPY
US Dollar vs. Japanese Yen