Forex on Deriv Explained
Forex is the exchange of one currency for another. You trade a currency pair, predicting whether one currency will rise or fall against the other.
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How a pair works
A forex pair compares two currencies, such as EUR/USD or GBP/JPY. The price shows how much of the second currency (the quote currency) is needed to buy one unit of the first (the base currency). EUR/USD at 1.1050 means one euro is worth 1.1050 US dollars.
Majors, minors and exotics
| Type | What it is | Examples | Typical traits |
|---|---|---|---|
| Major | Includes the US dollar and currencies of the largest economies | EUR/USD, USD/JPY, GBP/USD, AUD/USD | Highly liquid, tighter spreads |
| Minor | Excludes the US dollar and pairs other major currencies | EUR/GBP, EUR/AUD, AUD/JPY | Moderate liquidity, slightly wider spreads |
| Exotic | A major currency paired with an emerging-market currency | USD/TRY, GBP/MXN | Low liquidity, wider spreads, higher volatility |
Types of forex pairs.
What Deriv offers
For options, Deriv's Trader markets page lists major and minor forex pairs. Multipliers on forex are offered on major pairs only. Check the app's symbol list for the exact pairs available to you.
Pips
A pip is the smallest standard price move. For most pairs it is the fourth decimal place, so a move from 1.1050 to 1.1051 is one pip. For yen pairs it is typically the second decimal place.
Basket indices and derived FX
Deriv also offers Basket indices, which measure one currency against a basket of five global currencies (EUR, GBP, JPY, AUD and USD), each weighted at 20%. Deriv's Forex Basket indices cover the AUD, EUR, GBP and USD, and the AUD Basket in the app's multichart example is one of these. Derived FX are simulated assets priced from real major forex pair movements, with algorithms that dampen the effect of news and sentiment.
Forex versus synthetic indices
| Feature | Forex pairs | Volatility Indices |
|---|---|---|
| What moves the price | Real-world economics, news and sentiment | A fixed random process |
| Trading times | Differ by market. Check Deriv's trading times for each pair | 24/7 |
| Learn more | This page | Volatility Indices |
Forex compared with Volatility Indices.
Real markets can gap and react to news in ways an assistant cannot foresee, so risk limits matter. Check the app's symbol list for the pairs available to trade.
Practise on a Deriv demo account before you use real money.
Get StartedFrequently asked questions
- What is a currency pair?
- A quotation of two currencies, with one expressed in terms of the other.
- What is a pip?
- The smallest standard price move. For most pairs, the fourth decimal place.
- What is the AUD Basket?
- A Basket index that measures the Australian dollar against a basket of five currencies, each weighted at 20%.
Keep reading
- Stock indicesA stock index tracks the performance of a group of companies. Trading an index lets you predict how a whole market or sector moves, without owning shares.
- CommoditiesCommodities are basic raw materials such as gold and oil. On Deriv you predict how their prices move, without ever owning the physical goods.
- Volatility IndicesVolatility Indices are simulated markets with a constant level of volatility. They do not depend on real-world news, and they trade around the clock.
Sources
Risk warning: Trading binary options involves a high level of risk and you could lose your entire stake. Only trade with money you can afford to lose. This page is educational and is not financial advice.