In the forex market, the real-time value of currencies is measured against one another. The comparison between two currencies forms a chart that shows the price of the base currency relative to the quote currency.
A symbol created from the comparison of two currencies is called a currency pair. For example, the euro dollar (EUR/USD) is a currency pair that shows the value of 1 euro relative to the US dollar.
At Aron Groups broker, you have access to hundreds of currency pairs across major, minor, and exotic categories, and you can even trade domestic pairs such as USD/IRT.
The forex market is primarily influenced by macroeconomic conditions, central bank policies, and global capital flows.
Interest rates, monetary policies (expansionary or contractionary), inflation, unemployment rates, and gross domestic product are among the key factors that determine the value of a country’s currency.
Indices mainly reflect overall stock market conditions and investors’ risk appetite. In forex, however, differences in monetary policy and economic outlook between countries are often the main drivers of price movements.
Stocks usually react to company-specific news. In contrast, forex focuses more on macroeconomic developments such as inflation and interest rates, and on how one country’s economic conditions compare to another’s.
When interest rates change
Central banks influence the value of their national currency by changing interest rates or by signaling the likely future direction of rates through monetary policy.
Interest rates represent the return on holding a currency. If the market expects a currency to offer higher returns in the future, capital demand for that currency increases, which affects the exchange rate.
When economic data is released far from market expectations
The market always operates based on expectations. If data such as inflation or economic growth is significantly different from what was expected, traders may revise their outlook on the economy and future central bank decisions. This shift in expectations directly impacts exchange rates.
When overall market sentiment changes
During periods of increased geopolitical tension and instability, capital tends to move toward safe-haven assets as uncertainty rises.
Conversely, in calmer periods with more stable and predictable expectations, capital generally flows toward higher-yielding assets, and investors become more willing to take on risk.
Please note that price drivers are not limited to the factors above, and unpredictable elements can also influence the market. Therefore, always apply proper risk management when entering trades and avoid excessive bias toward any single market trend.
By answering a few short questions, you can see which categories of currency pairs are usually followed more closely by traders with a perspective similar to yours.
When one economy is perceived as stronger than another, or conversely weaker, exchange rates adjust, and the currency of the stronger economy tends to appreciate.
Sudden volatility around economic news releases can lead to wider spreads and increased slippage.
Price gaps may occur during news releases, shifts in market expectations, or at market openings due to sudden price shocks.
Changes in currency pair correlations across different periods show that historical relationships between instruments are not constant.
Leverage can amplify both profits and losses, making risk management essential.
Metal
Gold
Silver
Silver Euro
Gold Euro
Palladium
Platinum
Trading Symbol
XAUUSD.
XAGUSD.
XAGEUR.
XAUEUR.
XPDUSD.
XPTUSD.
Description
Gold vs US Dollar / Spot
Silver vs US Dollar / Spot
Silver vs Euro
Gold vs Euro / Spot
Palladium vs US Dollar / Spot
Platinum vs US Dollar / Spot
Trading costs, including spreads, commissions, and swaps at Aron Groups, depend on the account type, trading instrument, and, in some cases, periodic promotional campaigns. For the most up-to-date details, please refer to the instrument specifications and your trading panel.
| Account Type | Spread Type | Commission | Swap | Swap free period | |
|---|---|---|---|---|---|
Nano
|
Fixed | No | Discounted | ||
| AUDCAD, AUDCHF, AUDJPY, AUDNZD, AUDUSD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD, EURUSD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, GBPUSD, NZDCAD, NZDCHF, NZDJPY, NZDUSD, USDCAD, USDCHF, USDJPY | |||||
Standard
|
Floating | Yes | Discounted | ||
| EURUSD, GBPUSD, USDJPY, NZDUSD, USDCHF, AUDUSD, EURGBP, USDCAD, EURCAD, GBPCAD, AUDCAD, EURAUD, GBPAUD, EURJPY, AUDJPY, AUDCHF, NZDCHF | |||||
Islamic
|
Fixed | $3.5 per lot, per side | Yes | 14 days swap free on the gold symbol (XAUUSD) | |
VIP
|
Floating | $3.5 per lot, per side | Yes | NO | |
Contract specifications define the set of rules that determine the trading unit, as well as how costs and margin requirements are calculated.
Depending on how the instrument is offered, it may be displayed as a spot or a CFD.
The lot is the unit of trading volume in forex and determines your profit and loss based on the value of each pip.
This shows how each unit of price movement affects your profit or loss relative to the selected lot size.
This is the amount of capital required to keep a position open and depends on position size and leverage.
The forex market is generally open 24 hours a day, five days a week.
Details such as the contract size of each symbol, exact margin requirements, and the conditions of each currency pair can be found on the dedicated page of that instrument.
Compare the forex market alongside stocks, indices, metals, energy, and commodities to gain a clearer understanding of how financial markets differ in their price behavior.
Join the community of professional forex traders.
Forex is a decentralized over-the-counter network of banks, brokers, market makers, and liquidity providers where currency prices and trades are executed electronically across major financial centers around the world.
Forex typically responds to central bank decisions through changes in interest rate expectations and shifts in capital flows between currencies.
Because liquidity levels, sensitivity to news, and the intensity of reactions to macroeconomic data or monetary policy are not the same across all currency pairs.
Around central bank decisions, the release of major economic data, and during periods of elevated global risk, volatility, liquidity, and price movements tend to increase.
Sudden volatility during news events, price gaps, changing correlations, and the amplification of risk due to leverage are among the main risks of trading forex.
Forex is mainly driven by monetary policy and macroeconomic data. Stocks are more dependent on company performance and corporate news, while indices provide a broader view of overall stock market conditions.
