Spot FX Trading is the margin-based speculative trading of currency pairs with prices from the global interbank foreign exchange market. Spot FX trading is over-the-counter ("OTC"), that is it is not conducted on a centralized exchange.

Currencies are always traded in pairs; by convention, the value of the first currency in a pair is expressed in terms of the second. For example, a price for the EUR/USD combination expresses the value of the EURO in US DOLLARS. A price (exchange rate) for EUR/USD of 1.2551 means that one (1) EURO is worth 1.2551 US DOLLARS.

This convention also means that there is no such thing as "up" or "down" in the spot FX market-if one currency is "falling," then its counterpart is "rising." There is no structural bias in FX as there is in equities.

Spot currency trading is usually "leveraged," that is a small margin deposit is used to control an amount of currency ("contract value") that is anywhere from several to several hundred times the deposit. With a 50 to 1 leverage, a deposit of 2,000 USD controls one 100,000 USD currency lot. Leveraged trading allows for traders to earn great returns from relatively small investments, though at a high risk. For example, with the aforementioned leverage and deposit, a 5% market move in the trader's favor produces a profit of 5,000 USD, a 250% profit for a market move of only 5%.

EFX allows you to participate in the spot FX market through an innovative and efficient internet-based currency trading platform.