What is forex live trading?

Forex live trading is short-term and fast-paced online trading on the foreign currency exchange market. This market is commonly known as forex or FX, and it is the world’s biggest and most popular market, with over 5 trillion USD worth of trades placed every day. 

Although forex trading happens mostly online on different trading platforms, you’ve most likely made a face-to-face forex transaction a few times in your life too. For example, when you travel to another country, say the United States, you need to convert your home country’s currency into USD. When you do this, the exchange rate between the two currencies determines the amount in USD you get for your local currency. The exchange rate fluctuates continuously and is based on the supply and demand of the currencies.

In simple terms, forex trading means buying one currency and selling another at the same time; this is why you always see them quoted in pairs. For example, EUR/USD and GBP/USD. The first currency in the pair is the one you are buying, and the second is the one you are selling.

Which currencies can I trade live on forex on Deriv?

Forex live trading, just like the offline version of it, involves trading on currency pairs.

There are three types of currency pairs: 

  • Major pairs — the world’s most widely traded currencies paired, e.g. GBP/USD or EUR/GBP
  • Minor pairs — less liquid currency pairs, e.g. NZD/USD or AUD/CAD
  • Exotic pairs — one major currency paired with an emerging economy’s currency, e.g. EUR/HKD

Forex pairs available for live trading on Deriv:

Forex Pairs Available for Live Trading on Deriv (old)

How to get started with forex live trading?

There are multiple ways to start forex live trading. For example, on Deriv, you can trade currency pairs with digital options, multipliers or CFDs. But whichever trading type you choose, there are some universal tips that will help you make the beginning of your forex trading journey a little easier:

1. Familiarise yourself with forex lingo

  • Base currency: The currency you are holding. If you’re from France, that currency would be Euro. In the EUR/USD pair, EUR is the base currency, and it shows how much US dollars you can buy with one Euro.
  • Quote currency: The currency used as a reference to measure the value of the base currency. In the EUR/USD pair, USD is the quote currency.
  • Bid price: The bid price is what the broker is willing to pay for the base currency.
  • Ask price: The ask price is the rate at which a broker will sell the quote currency. It is always higher than the bid price.
  • Spread: The difference between the ask price and the bid price; Ask price – Bid price = Spread. If you are buying the currency, you’ll pay the ask price, and if you are selling it, you’ll receive the bid price. 

2. Analyse the market 

From major political events, elections, and an increase in government debt to something as unexpected as natural disasters, there are many factors that may affect how the forex market moves. That’s why it is crucial to keep an eye on market-related news and significant events that might affect the price movement. Good analytical skills and in-depth knowledge about the market conditions will help you to make the best possible trading decisions.

3. Choose the right broker

Trading forex live with a reputable and internationally regulated broker can mean the difference between profiting from your trades and losing money. It’s crucial to take your time to do some research and read reviews in order to select the broker that best suits your needs. Here is what you need to pay attention to. Your broker:

  • Offers demo accounts where you can practise trading risk free.
  • Has a wide suite of available forex pairs and other trading products to help you diversify your portfolio.
  • Gives you easy and round-the-clock access to their customer support team to provide you with quality assistance whenever you need it. 
  • Offers a wide selection of deposit and withdrawal options in your country of residence to make sure you can fund your account and take your money out of it effortlessly.
  • Has the required licences and complies with the necessary regulations in your country of residence.

4. Practice, practice, practice

Make use of your demo account! The idea behind demo accounts is not only to offer you an opportunity to get to know the online trading interface. Having a demo account also allows you to test your trading skills and strategies with virtual money without putting any of your hard-earned capital at risk. Once you feel confident in your understanding of the market and the broker’s trading platform, you are more likely to succeed in trading with a real account.

Need more info before diving in? Download the free “How to trade the forex market” ebook, written by a veteran trader, Vince Stanzione. It is filled with trading strategies and tips to help you get started on forex trading.



Digital options on forex are not available for clients residing in the EU. 

Multipliers trading on minor and exotic currency pairs and options trading are unavailable to clients residing in the EU.