What Is Forex
The foreign exchange market, or forex, is where currencies are bought and sold against each other. Banks, companies, funds and individual traders all take part. There is no central exchange: trading passes through a global network of dealers, which is why the market runs around the clock on weekdays.
Currencies are always quoted in pairs. In EUR/USD the euro is the base currency and the US dollar is the quote currency, so a price of 1.1000 means one euro costs 1.10 dollars. Buying the pair means you expect the euro to strengthen against the dollar; selling it means you expect the opposite.
Forex Prop Trading at Pivex
When traders talk about a forex funded account, they usually mean trading a firm's account under its rules instead of risking a personal balance. At Pivex that account is simulated and runs on real-time market data, and every currency pair is traded as a CFD. Your results in the 1-Step Challenge decide whether you move on to the Pivex Trader stage. Pivex is not a broker and does not provide investment services.
Majors, Minors and Exotics
Currency pairs fall into three groups, and the group says a lot about how a pair behaves. The Markets list in the platform shows every pair available right now.
| Symbol | What it is | Group |
|---|---|---|
| EUR/USD | Euro against the US dollar | Major |
| GBP/USD | British pound against the US dollar | Major |
| USD/JPY | US dollar against the Japanese yen | Major |
| EUR/GBP | Euro against the British pound | Minor |
| GBP/JPY | British pound against the Japanese yen | Minor |
| USD/TRY | US dollar against the Turkish lira | Exotic |
| EUR/ZAR | Euro against the South African rand | Exotic |
Majors pair the US dollar with another large economy's currency and carry most of the volume, so their spreads are usually the tightest. Minors, or crosses, leave the dollar out; GBP/JPY is known for wide daily ranges. Exotics pair a major currency with an emerging market one and tend to bring wider spreads, sharper moves and larger swaps.
Sessions and Overlaps
Forex on Pivex runs 24 hours a day, five days a week, from Sunday 21:00 UTC to Friday 21:00 UTC. Over that time the market passes through four main trading centers, and liquidity rises and falls as each one opens and closes.
| Session | Main center | What to expect |
|---|---|---|
| Sydney | Australia | A quieter start to the trading day, led by Asia-Pacific currencies |
| Tokyo | Japan | More activity in yen pairs such as USD/JPY and GBP/JPY |
| London | United Kingdom | The busiest center for currency trading, with euro and pound pairs in focus |
| New York | United States | US data releases and dollar pairs take the lead |
Activity tends to peak in the overlaps. While London and New York are both open, the majors usually see their deepest liquidity and tightest spreads. The late New York hours, before Asia picks up, are often the thinnest part of the day.
What Moves Currencies
A currency's value reflects what traders expect from its economy and its central bank. Prices move when those expectations change, which is why scheduled data and policy meetings matter so much.
- Interest rates: higher rates, or the expectation of them, tend to attract capital and support a currency.
- Central banks: decisions from the Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan can move their currencies within seconds.
- Economic data: inflation, jobs, retail sales and business surveys shape the rate outlook, and the monthly US jobs report is among the most watched releases.
- Risk sentiment: in calm markets traders lean toward higher yielding currencies, while in stressed markets the US dollar, the Japanese yen and the Swiss franc often find demand.
- Politics and trade: elections, tariffs and sudden policy shifts can matter most for exotic pairs.
An economic calendar shows when the next release or meeting is due. Checking it before each session keeps you from holding a position through news by accident.
Pips and Lots in Plain Terms
A pip is the standard unit for a price move in forex. For most pairs it is the fourth decimal place, so EUR/USD moving from 1.1000 to 1.1010 is a 10 pip move. For pairs quoted in Japanese yen, such as USD/JPY, a pip is the second decimal place.
A lot measures position size. By the usual forex convention one standard lot is 100,000 units of the base currency, and smaller lots let you size more finely.
| Lot | Units of base currency | Value of 1 pip on EUR/USD |
|---|---|---|
| Standard (1.00) | 100,000 | $10 |
| Mini (0.10) | 10,000 | $1 |
| Micro (0.01) | 1,000 | $0.10 |
Pip value is what turns a stop loss into a dollar risk. A 20 pip stop on 0.50 lots of EUR/USD risks $100, while the same stop on 0.10 lots risks $20.