What Is Forex Trading?
Since its founding in 2012, Britannia Financial Group has grown to become a full-service global financial firm that offers investment banking, securities, and wealth management services. The group, headquartered in London, maintains offices in the Bahamas and Switzerland and serves ultra-high-net-worth individuals, as well as institutions, corporations, and family offices. Britannia Financial Group encompasses five fully regulated subsidiary firms: Britannia Global Investments, Britannia Global Payments, Britannia Wealth Management, Britannia Bank & Trust, and Britannia Global Markets.
Britannia Global Markets, formerly known as Berkeley Futures Limited, provides access to derivatives markets such as precious and base metals, stock indices, and agriculturals. Moreover, Britannia Global Markets maintains membership in the Dubai Gold & Commodities Exchange and the London Stock Exchange. In addition, it is a Category 2 member of the London Metal Exchange. Britannia Global Markets offers an array of products that include futures, options, equities, and bonds. The subsidiary Britannia Global Investments gives clients access to a full complement of forex trading options.
Forex trading refers to foreign exchange trading. It involves the exchange of one national currency for another. Exchanges, such as a swap of the Euro for the United States dollar, occur for a variety of reasons such as commerce, tourism, and speculation.
Currency exchanges take place on the Forex Exchange Market (Forex Market), which comprises brokers, traders, banks, and other financial institutions. All trades in the forex market occur over-the-counter (OTC), which means that transactions take place electronically via individual traders rather than through a centralized exchange.
The forex market is the largest financial market in existence. It facilitates trillions of dollars in exchanges among traders. Moreover, the forex market operates nonstop, 24 hours a day, every day, making it the only nonstop trading market in the world.
Trading on the forex market can take place through the spot market, the forward market, or the futures market. The spot market, which is the most common, involves the purchase and sale of currencies based on their current trading price. Supply and demand factors influence prices as do other economic factors such as current interest rates, public sentiment, political stability, and monetary performance. Spot deals refer to finalized deals on the spot market and take two days to settle.
The forward market involves trades that take more than two days to settle. Forward contracts entail the exchange of currencies at a future date at a predetermined price and are governed by contractual agreements between the two parties. The futures market operates similarly to the forward market in that trades take place in the future. However, the terms of a forward market contract are set by the parties themselves, while the terms of a futures contract are set by a public commodities market such as the New York Mercantile Exchange or the London Metal Exchange.
At Britannia Global Markets, forex trading is supported by a robust technology platform that features smart order routing systems, ultra-low latency, and customized liquidity options. The company allows trading professionals and institutional clients to participate in the forex market through voice options, graphical user interfaces, and apps.
