Foreign Exchange Market

Today, our services meet the needs of a broad range of clients from novice to professional traders, and from small hedge funds to some of the world’s largest financial institutions. Thousands of traders prefer PCM FX for online FX trading.

They’ve helped fuel our growth into one of the largest online retail FX brokers in the industry.  The foreign exchange market is an international financial market where currencies are traded at a mutually agreed rate, a network of the largest financial institutions in the world such as central banks, commercial banks and other financial institutions, corporations and private investors, where foreign currency is bought and sold . Foreign Exchange Market refers to trading in foreign exchange markets, i.e. trading with currency. The name FX originates from the English term Foreign Exchange, which means: currency or coins. It was established in the 1970s when international trade switched from fixed to floating exchange rates. Following forty years of rapid growth, Foreign Exchange Market is now considered to be the largest financial market in the world with a turnover of $4 trillion a day.

FX brokers are a bridge between the trader and the market. They enable access to the global currency market by providing traders with the necessary licensed trading software. Brokers also play a pivotal role in ensuring their clients have the necessary capital and risk management skills to trade FX, and provide research tools and tutorials to enhance their understanding and decision making.

FX trading is all about identifying whether a certain country’s currency will increase or decrease in value in the global financial markets. There are many ways to trade the FX market. It can be traded fundamentally or technically, day-trading, scalping, swing trading, and long term. The value of currencies is influenced by economic factors, geo-political events, supply and demand, and market sentiment.
The FX market is a 24 hour global market that works continuously all week, except Saturdays and Sundays. The four largest FX centers in the world are London, New York, Tokyo and Singapore. the majority of Foreign Exchange Market transactions are made in five major currencies: the US Dollar, the Euro, the British Pound, the Japanese Yen and the Swiss Frank. The greatest number of FX currency trades is made against the US Dollar.

 

Why FX Trading?

 

The Foreign Exchange market is the biggest capital market in the world with a daily turnover of approximately US $ 3,2 trillion. In this market you can trade and enjoy the following advantages:

  • New source of return to your portfolio beyond stocks and bonds
  • Potential additional yield from high interest currencies
  • More risk diversification to your portfolio beyond stocks and bonds
  • Possibility to trade heavy macro economic events and trends
  • Numerous trading opportunities for technical and short-term traders
  • Profit from stop losses, high liquidity and safety

 

Futures

 

Futures markets have provided an efficient and effective mechanism for the management of price risks for nearly a century and a half. It has begun with agricultural futures contracts traded on the Chicago Board of Trade in 1865, now the U.S. futures markets lists a number of instruments, including metals, energy, financial instruments, foreign currencies, stock indexes, prediction markets, event futures and options on futures. In the 1990’s, exchanges introduced electronic trading enabling access to futures markets 24-hour, 7 day a week.
A futures contract is a legally binding agreement. Its contracts are standardized according to the quality, quantity and delivery time and location for each commodity. The only variable is price.
Excellent market liquidity and tight spreads on all major contracts, Trade agricultural products, oil and energies, base metals, precious metals, bonds, currencies, short-term interest rates, meats, softs and stock indices are the reasons of why trade futures in PCM FX. Futures contracts can derive from a variety of assets, from traditional commodities like corn, wheat, and orange juice to different asset classes, like government bonds, interest rates, energies and stock indices.
Individual Futures and Options traders can trade directly through a broker or Introduced Broker account and are traditionally placed in one of two groups:

1.Hedgers: Individuals and firms that have an interest in the actual commodity. Hedgers make purchases and sales in order to lock in a price for a physical good they later intend to buy or sell in the cash market.

2.Speculators: Individuals and firms who seek to profit from anticipated increases or decreases in futures price and settle in cash without any exchange of physical goods. In so doing, speculators help provide the risk capital needed to facilitate hedging.

The interaction of hedgers and speculators ensures an active, liquid and competitive futures market.

Contract for Difference (CFD)

CFD, i.e. Contracts For Differences, belong to the group of derived financial instruments, just as FX products do. However, they are not based on currencies, their base values constitute shares, indexes and raw materials. You, as an investor, will participate in the changes – exactly reflected – in the valuation of the base value. You may speculate on the upside stock or ensure your stock portfolio by taking advantage of downside

stock.

The CFD were developed so the client could benefit from the advantages of owning stock without actually really owning it. As the name of the CFD indicates, it is always a contract on a transaction based on the difference between the opening and closing value of a position. One of the advantages of CFD contracts is that, as with FX contracts, they are negotiated on a margin. Thus you can achieve great results even with small amounts.

 

Why PCM Brokers?

Whether you are a private, professional or institutional investor, PCM offers you the execution and security regulations paired with the innovative technologies of a market oriented online broker.

Asset Management with Managed Futures is our core expertise. We know the Managed Futures-Managers from all over the world, we know how to rate them, and we know how to use their products to build a balanced portfolio that meets your investment needs.

  • Trade with PCM and get PCM Trader for free
  • Up to 1:200 leverage
  • USD 10.000 minimal trading volume per contract
  • Use of stop and limit order possible
  • Electronic execution of orders (no dealer intervention)
  • 62 currency pairs

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