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Currencies are traded 24 hours a day 5 days a week around the world. Trading Market opens Monday morning in Wellington, New Zealand and stay open till the Friday night in New York, USA. Knowing which trading session is active now can help with choosing a pair to trade and which economic events to review before trading.

Each trading day can be divided into three trading sessions, depending on the financial center active during a specific period of time. The time each session opens and closes at is based on the local business hours:

* Eastern European time: GMT+2 winter; GMT+3 summer

Asian (Tokyo) session

With major trading center in Tokyo, Asian session also includes China, Australia, New Zealand and Russia. The first financial center to open after the weekend is actually Wellington, New Zealand, while Tokyo capital markets itself only opens at 2 AM EET (3 AM EEST). Closing hours overlap with the beginning of the European session.

Important economic data from the region that may affect European and American session are released during that time. You can expect significant price movements on USDJPY, EURJPY and AUDJPY.

European (London) session

When financial centers through Asia are about to close, European markets start their day. Since European session coincides with both Asian and American ones, there is normally an increase in volatility and market liquidity, however, spreads tend to be more tight during the London session.

The most significant economic news are released from the Eurozone, the United Kingdom and Switzerland. It is not uncommon for a trend started during the European session to continue until the beginning of New York session. The most liquid pairs are EURUSD, GBPUSD, USDCHF, EURGBP and EURCHF.

American (New York) session

Dominated by the US with the major financial center in New York, American session also includes Canada and South American countries.  Naturally, there is high liquidity in the first half of the session, while the european markets are still open.

A number of economic indicators that have a profound impact on the market are released by the US and Canada, so make sure to check economic calendar in advance to keep track of the upcoming news. Since the most of Forex transactions involve USD, you can expect all majors and crosses to be volatile, however high liquidity available during this session, allows to trade practically any pair.

Foreign Exchange market, commonly referred to as Forex or simply FX, is the largest financial market where currencies are bought, sold and exchanged one for another. Unlike, for example, stocks market, it has no centralized exchange and transactions are performed over-the-counter, that is, participants trade with one another through a worldwide network of banks, brokers and other financial institutions.

As a global market Forex is open 24 hours a day, 5 days a week. The major financial centers are based across almost every time zone – in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. Depending on the exchange active during a specific time, one can distinguish between three trading sessions: Asian, European and American. To learn more about trading sessions please follow the link.

In foreign exchange currencies are quoted against one another in pairs and the price indicates how much of quote (second) currency is required to buy or sell one unit of base (first) currency.

Exchange rates are driven by forces of supply and demand: currency value usually increases whenever demand for it is greater than supply and decreases if demand is less than supply. Moreover, prices fluctuate in response to economic, social and political events that occur throughout 24-hour trading day.

Political situation and economic performance of the countries involved have a profound effect on the currency prices as well. For instance, a country with lower inflation rate will typically see increase of its currency value in relation to the currencies of its trading partners. Inflation is also highly correlated with central bank's interest rate: lower interest rate can depreciate exchange rate and vise versa.

Another detrimental factor in price setting is orders from Forex market participants, that are quite diverse in volume they generate and influence they have.

Governments and central banks such as the European Central Bank, the Bank of England, and the Federal Reserve of the US operate with the largest volumes and have the most influence on exchange rates. Central banks try to control inflation, money supply, interest rates and are in charge of supervising commercial banking systems. They can use foreign exchange reserves to intervene in the market to stabilize currency rates or achieve a specific economic goal.

The second largest group comprises major banks and bank associations that form so called interbank market, through which they transact with each other and determine the currency price individual traders observe in the trading platform. Since forex is a decentralized market, you can often see that different banks offer slightly different exchange rates for the same currency. OctaFX clients receive the best bid/ask prices quoted from our vast liquidity pool.

Another group of forex participants is brokerage firms that act as intermediaries between individual traders and the market. They use electronic communication networks (ECNs) to offset clients' orders with itsliquidity providers, which may comprise of various financial institutions. This execution model eliminates a conflict of interests between the brokerage and its client when an order is executed. An ECN brokerage, unlike a market maker, is compensated through commission that can either be charged per each order or included in the spread as a mark up. You can learn more about ECN execution here.

An ECN brokerage allows individual traders to access the forex market, which initially was the domain of large financial institutions only, and gain profit from price fluctuations. Even though daily price fluctuations are seemingly small, often less than 1%, use of leverage can increase the value of these movements.

Traders interact with a broker through a trading platform - a piece of software that allows to buy and sell currencies. It can be installed on your desktop computer, mobile device or even accessed via web browser.

When choosing a forex broker, it is important to take into account various factors, including:

Reliability

It's highly important to consult various ratings and review before investing. OctaFX acts in accordance with major international laws and regulations to provide most secure and reliable service to our clients.

Execution

OctaFX execution model eliminates any conflict of interest between the client and the broker: we act as an intermediary between you and the real market by offsetting orders one by one with competing prices from our vast liquidity pool. You can be sure our execution speed is under 0.1 second and OctaFX clients do not experience any re-quotes.

Spreads

In general, spread can either be fixed or floating: the former remains the same even though the price is changing, while the latter varies depending on the market situation and is normally more tight than the fixed one. Spread should be taken into account as the lower it is, the less you pay for each trade. Our tight floating spread, along with no trading commission, ensures low cost of trading and accurately reflects what is available in the market.

Trading tools

Every trader looks for versatility: wider range of trading tools allows to select pair you are comfortable trading, leaving a space for experimental trading as well. With our great selection of trading tools you can trade the market you are interested in.

Minimum deposit

More important for newbie traders, accessibility of trading is also determined by the amount of minimum deposit. At OctaFX you can start with as much as $5/€5 as your initial investment. It will help you try various techniques and applying different trading strategies and will help you to be prepared for serious trading. Good news is that maximum deposit is unlimited!

Funds security

Making sure your funds are safe is of primary importance while making investments. OctaFX uses 3d secure technology for Visa/Mastercard deposits, and SSL encryption to protect client's Personal Area. All measures taken make financial information secure and inaccessible to any third parties.

Negative balance protection

Negative balance protection feature protects traders from unexpected market circumstances: if the trader's balance becomes negative, OctaFX compensates it back to zero. Thus, your losses cannot exceed your deposits. Negative balance protection feature comes handy in a constantly changing economic environment: OctaFX reversed our clients' negative trading balances back to zero after Swiss franc event in 2015, while some of the brokers went bust.

Account types

Choosing an account type suitable for your level of trading experience is vital to ensure you are using your trading potential right. Our range of trading accounts allows traders with different experience and needs to operate their funds accordingly: micro accounts allow new traders to practice with minimum deposit of $5, while live ECN account offers a wider range of trading tools for more experienced traders.

Leverage

As daily price fluctuations are seemingly small (often less than 1% of a cent), it is important to choose a broker which offers a substantial leverage. The higher your ratio is, the less funds you will need to hold a position. OctaFX offers flexible leverage system with the highest leverage ratio of 1:500.

Platforms

Selecting a trading environment you need to consider general platform's usability, compatibility with your device and the amount of trading instruments available for technical analysis. OctaFX provides you with Metatrader 4 and cTrader platforms, both available in desktop, mobile and web-platform versions.

Customer Service

If any questions regarding trading occur, Customer Support will provide a trader with relevant information on how to solve any problem he may have. Our award-winning Customer Support is available 24/5 and it takes around 5 minutes on average to untangle even the most complicated issue a client may have.

Thanks to large daily trading volume, deep liquidity, availability 24/5 and low costs, Forex definitely stands out when compared to other markets. It allows a trader more flexibility when choosing how and what to trade, along with considerable leverage, tight spreads and small investment. You can learn more about Forex market advantages here.

1. Register with OctaFX by opening an account

Having an account allows you to access your personal area on our website and to trade with OctaFX. Once registered, please check your email to find out your personal area login details and trading account credentials.

Personal area login details will allow you to manage your funds, get bonuses and take part in our promotions, while trading account credentials are used to access trading platform.

2. Make a deposit

Login to your Personal area to make a deposit. At OctaFX you can start trading with a minimum of $5 although the initial deposit can be higher. According to Risk Management strategy, the more funds you have, the less risks you are exposing yourself to on a particular trade.

We don't charge any commissions on your deposit and our withdrawal systems work efficiently to help you withdraw your profits.

3. Sign in to the web based platform

The web based platform requires no installation and allows you trade from any device anytime. To sign in, click File->Login, enter your account number into "Login" box, along with your trader password that was sent to your email address into the "Password" box and select OctaFX-Real, if you sign in with a real account. Alternatively, you can trade from your desktop, iOS or Android device. You can compare platforms here.

4. Click "Buy" or "Sell"

One click trading To open an order, you can simply select the volume of your position and click the Buy or Sell button. There are many other ways to open a trade as described here.

How do I trade?

Basically, you open a buy order if you expect the price to go up and open a sell order when you expect the price to go down.That means that you buy a certain amount at a lower price now, in order to sell it back at a higher price later and gain profit from the price difference and vice versa.

Understanding leverage

Leverage reduces marginal requirements (that is, the amount necessary to maintain a certain position) and helps you to open orders with larger volume than you balance would allow otherwise. However, it is important to note that it works both ways: the higher the volume of your order is, the more you gain or lose for each pip the price goes up or down. Please consider the example below:

If you have a trading account with $500 and 1:500 leverage, your open position for 1 lot (100,000) on EUR/USD, when the value is 1.13415. The required margin for this position is $226.83, almost half of your account value. Each pip movement is worth $10 to your trade account. Therefore, the value only needs to fall to 1.13145 for you to lose nearly all of the money in your trade account. With volume of 0.5 lots, however, each pip costs you $5 only, which means that in case the price falls to 1.13145 your loss would be $135.

This should be taken into account when making a trading decision and evaluating the potential risk of an adverse price fluctuation.

How do I predict whether the price is going to rise or fall?

As a beginner you can simply track the general direction of the price on the chart and open buy orders when it goes up and sell orders when it goes down. This may not guarantee you profit in all cases, however it is a good start for developing your strategy.Predicting trends - Uptrend - Downtrend - Sidetrend

If you have little to no experience yet, it would be advisable to avoid trading during major news releases since the market tends to be highly volatile. Two more advanced methods of price prediction are technical analysis and fundamental analysis. Basic risk management techniques may also prove beneficial in reducing losses.

How do I make a profit?

There are many strategies that allow you to profit from currency price fluctuations, for example scalping, martingale, hedging, news trading and many others. You can find a detailed description of most common strategies here.

Alternatively, you can use automated trading software that can help you in making trading decisions or even open and close positions for you.

How do I close an order?

Your order profits fluctuate depending on the current market price until you close it. If you feel like you've gained substantial profit, open "Trade" tab in your MT4, find the open position, right click it and select "Close order" from the context menu.

What should I know before I start?

There are certain concepts and terms that are essential to get familiar with. We've covered them in the "How to trade Forex" article. Please also feel free to explore our Education section, in order to expand your knowledge about the market in general and OctaFX services in particular. If you would like to practice risk free, you can open a demo account, which has virtual funds only.

EUR/USD stayed in consolation below 1.1444 last week and outlook is unchanged. Initial bias remains neutral this week first. In case of another fall, downside should be contained by 1.1291 resistance turned support to bring rise resumption. Break of 1.1444 will extend the rally from 1.0339 low to 1.1615 resistance next. Meanwhile, break of 1.1291 will turn focus back to 1.1118 support instead.

In the bigger picture, the firm break of 1.1298 resistance further affirm medium term reversal. That is an important bottom was formed at 1.0339 on bullish convergence condition in weekly MACD. Further rise would be seen to 55 month EMA (now at 1.1763). Sustained break there will pave the way to 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 next. This will now remain the favored case as long as 1.1118 support holds.

In the long term picture, 1.0339 is now seen as an important bottom as the down trend from 1.6039 (2008 high) could have completed. It's still early to decide whether price action form 1.0339 is developing into a corrective or impulsive move. But in either case, further rally would be seen to 38.2% retracement of 1.6039 to 1.0339 at 1.2516

USD/JPY's rally continued last week and there is no sign of topping yet. Initial bias stays on the upside for 114.36 resistance. Decisive break there will confirm our bullish view that corrective pull back from 118.65 has completed at 108.12. In that case, further rally would be seen to retest 118.65. On the downside, break of 112.88 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.

In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it's uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it's a leg in the consolidation from 125.85. Hence, we'll be cautious on topping as it approaches 125.85.

In the long term picture, the rise from 75.56 long term bottom to 125.85 top is viewed as an impulsive move. Price actions from 125.85 are seen as a corrective move which could still extend. But, up trend from 75.56 is expected to resume at a later stage for above 135.20/147.68 resistance zone.

GBP/USD's stayed in consolidation below 1.3029 last week and outlook is unchanged. Initial bias remains neutral this week first. We'd continue to expect strong support from 1.2849 to contain downside and bring rise resumption. Above 1.2982 minor resistance should turn bias back to the upside for 1.3047 resistance. Break will target 61.8% projection of 1.2108 to 1.3047 from 1.2588 at 1.3168 next. However, sustained break of 1.2849 will dampen our near term bullish view and turn focus back to 1.2588 support.

In the bigger picture, overall, price actions from 1.1946 medium term low are seen as a corrective pattern that is still in progress. While further upside is now in favor, overall outlook remains bearish as long as 1.3444 key resistance holds. Larger down trend from 1.7190 is expected to resume later after the correction completes. And break of 1.2588 will indicate that such down trend is resuming.

In the longer term picture, no change in the view that down trend from 2.1161 is still in progress. On resumption, such decline would extend deeper to 100% projection of 2.1161 to 1.3503 from 1.7190 at 0.9532. However, firm break of 1.3444 should confirm reversal and turn outlook bullish.

USD/CHF stayed in consolidation above 0.9551 last week and outlook is unchanged. Initial bias stays neutral this week first. In case of another rise, upside should be limited by 0.9770 resistance and bring fall resumption. Break of 0.9551 will extend the whole fall from 1.0342 and target 0.9443 key support level next. At this point, we'd expect strong support from there to bring rebound. Meanwhile, firm break of 0.9770 will indicate near term reversal, on bullish convergence condition in 4 hour MACD.

In the bigger picture, USD/CHF is still bounded in medium term range of 0.9443/1.0342 for the moment. Consolidative trading would likely continue and medium term outlook remains neutral. Break of 1.0342 key resistance is needed to confirm underlying bullish momentum in the pair. Meanwhile, downside attempts should be contained by 0.9443 key support level. However, sustained break of 0.9443 will carry larger bearish implication and target 0.9 handle.

AUD/USD's corrective move from 0.7711 continued last week and outlook is unchanged. Initial bias remains neutral this week first. With 0.7534 support intact, another rise is in favor. Above 0.7643 minor resistance will bring retest of 0.7711. Break will extend the rally from 0.7328 to 0.7748 resistance and above. At this point, there is no clear sign of range breakout yet. Hence, we'd be cautious on topping again as it approaches medium term fibonacci level at 0.7849. On the downside, break of 0.7534 will indicate near term reversal and turn bias back to the downside for 0.7370 support.

In the bigger picture, we're still treating price actions from 0.6826 low as a corrective pattern. And, as long as 38.2% retracement of 0.9504 to 0.6826 at 0.7849 holds, long term down trend from 1.1079 is expected to resume sooner or later. Break of 0.6826 low will target 0.6008 key support level. However, firm break of 0.7849 will indicate that rise from 0.6826 is developing into a medium term rebound, rather than a sideway pattern. In such case, stronger rise should be seen to 55 month EMA (now at 0.8082) and above.

In the longer term picture, while the down trend from 1.1079 might extend lower, we're not anticipating a break of 0.6008 (2008 low) yet. We'll look for bottoming above there to reverse the medium term trend.

USD/CAD' fall continued last week and reached as low as 1.2858. Initial bias remains on the downside this week. Current decline from 1.3793 should target a test on 1.2460 low next. On the upside, break of 1.3013 resistance is needed to signal short term bottoming. Otherwise, outlook will remain bearish in case of recovery.

In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The second leg should have finished at 1.3793. Break of 1.2460 will extend such correction to 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we'd look for strong support from there to contain downside and bring rebound. However, firm break there will target 100% projection of 1.4689 to 1.2460 from 1.3793 at 1.1564.

In the longer term picture, rise from 0.9056 (2007 low) is viewed as a long term up trend. It's taking a breath after hitting 1.4689. But such rise expected to resume later to test 1.6196 down the road. But firm break of 50% retracement of 0.9406 to 1.4869 at 1.2048 will raise doubt over this view.

EUR/GBP rebounded towards the end of the week but stayed in range below 0.8879. Outlook is unchanged and initial bias remains neutral this week first. On the downside, break of 0.8718 support will argue that rise from 0.8312 has completed. In that case, intraday bias with be turned back to the downside for lower side of the range at 0.8312. Meanwhile, break of 0.8879 and sustained trading above 0.8851 will pave the way to retest 0.9304 high.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It's uncertain whether it is finished yet. But in case of another fall, we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside and bring rebound. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.

In the long term picture, firstly, price action from 0.9799 (2008 high) is seen as a long term corrective pattern and should have completed at 0.6935 (2015 low). Secondly, rise from 0.6935 is likely resuming up trend from 0.5680 (2000 low). Thirdly, this is supported by the impulsive structure of the rise from 0.6935 to 0.9304. Hence, after the correction from 0.9304 completes, we'd expect another medium term up trend to target 0.9799 high and above.