Trading foreign exchange involves a high degree of risk. CitiFX Pro offers trading on margin. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should ensure that you understand the risks and can withstand the losses and that you seek advice from your advisors as appropriate. Please visit www.citifxpro.com/asia and review Full Risk Disclosure, Explanation of Pricing and Privacy Disclosure carefully before opening an account. The views in this communication should not be considered as investment advice. Any trading or investment decision you take should be based upon your own independent judgment and/or advice from your advisors, as you deemed necessary . CitiFX Pro is a service offered to you solely by Citibank N.A., New York, 390 Greenwich Street, New York, NY 10013 and not by any other branch, subsidiary, or affiliate of Citibank NA (including Citibank (Hong Kong) Limited and Citibank N.A. Hong Kong Branch). Citibank N.A. is an entity organized under the laws of the United States of America. You should note that margin funds transferred to an account of Citibank NA in Hong Kong in respect of CitiFX Pro is not currently protected by the Deposit Protection Scheme in Hong Kong.] [Margin funds transferred to an account of Citibank NA in Singapore in respect of CitiFX Pro, will not benefit from protection under the Deposit Insurance and Policy Owners' Protection Schemes Act 2011. In Singapore, CitiFX Pro is provided by Citibank N.A., New York branch under an arrangement with Citigroup Global Markets Singapore Pte Ltd ("CGMSPL"). CitiFX Pro is directed only at persons in Singapore who qualify as an "accredited investor" or "expert investor" or "institutional investor", each as defined in the Securities and Futures Act, Chapter 289 of Singapore ("SFA") save that the definition of "expert investor" in the SFA is, for the purposes of CitiFx Pro, subject to the modifications in the next paragraph. For the purposes of CitiFX Pro, an individual will qualify as an "expert investor" only if the individual has experience in trading in financial markets, as part of the individual's business or employment and shall not include individuals whose experience consists solely of trading in financial markets in a proprietary or personal capacity. For the purposes of CitiFX Pro, a non-individual will qualify as an "expert investor" only if it is (i) a company or association or body of persons, corporate or unincorporated, whose business involves the acquisition and disposal or the holding, of "capital markets products" (as defined in the SFA), whether as principal or agent; and (ii) wholly-owned by persons who themselves qualify as an "accredited investor" or "expert investor" or "institutional investor" (each as defined in the paragraph above) in their own right. If you are not an "accredited investor", "institutional investor", or "expert investor", you will not be permitted to open a CitiFX Pro account. For more information on CitiFX Pro and/or information regarding how to demonstrate your qualification as an "accredited investor" or "expert investor" or "institutional investor", please refer to the application form or contact us directly at +65 3158 0363, or at sales@citifxpro.com.
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About the FX Market
Introduction
Every day, close to a trillion dollars’ worth of currencies are traded on the foreign exchange or Forex market, making it the largest market in the world. There is no central marketplace for foreign currencies. Trading is conducted over the counter, allowing traders to choose from different dealers and to compare prices. The global currency market is open 24 hours a day, five days a week.
Since a currency’s value can only be expressed in terms of its relative value to another currency, currencies are traded in “pairs,” with one currency bought and another sold simultaneously. In a currency pair, the first currency is called the “base currency” while the second is called the “counter currency.” The listing for the currency pair shows how much of the counter currency is needed to purchase one unit of the base currency. Among the most frequently traded currency pairs are the EUR/USD, GBP/USD, USD/JPY, and USD/CHF.
Typically, foreign exchange is traded using borrowed capital or “on margin,” with leverage of 2x, 10x, 50x or as much as 100x the invested amount not uncommon. While leverage enhances the profitability of successful trades, it also increases the downside of unsuccessful trades.
Traders use a variety of strategies in approaching the forex market, including fundamental analysis – which looks at the underlying economic and geopolitical situation of the issuing countries – and technical analysis, which examines historic trading patterns and the interrelationship of various currencies.
