Forex Investment
Our Core Principles
Forex trading is the means through which one currency is changed into another. When trading forex, you are always trading a currency pair – selling one currency while simultaneously buying another.
Each currency in the pair is listed as a three-letter code, which tends to be formed of two letters that stand for the region, and one standing for the currency itself. For example, USD stands for the US dollar and JPY for the Japanese yen. In the USD/JPY pair, you are buying the US dollar by selling the Japanese yen.
Some of the most frequently traded FX pairs are the euro versus the US dollar (EUR/USD), the British pound against the euro (GBP/EUR), and the British pound versus the US dollar (GBP/USD).
To keep things ordered, most providers split pairs into the following categories:
Four types of forex pairs:
Major pairs - seven currencies that makeup 80% of global forex trading. Includes EUR/USD, USD/JPY, GBP/USD and USD/CHF
Minor pairs - less frequently traded, these often feature major currencies against each other instead of the US dollar. Includes: EUR/GBP, EUR/CHF, GBP/JPY
Exotics pairs- a major currency against one from a small or emerging economy. Includes: USD/PLN, GBP/MXN, EUR/CZK
Regional pairs - pairs classified by region – such as Scandinavia or Australasia. Includes: EUR/NOK, AUD/NZD, AUD/SGD
Most forex transactions are carried out by banks or individuals by seeking to buy a currency that will increase in value against the currency they sell. However, if you have ever converted one currency into another, for example, when traveling, you have made a forex transaction.
Why Colawood Tech Funds ?
A lot has happened since 2019. But throughout all that time we’ve remained steadfast, providing traders with the stability and opportunities they need to make their mark on the financial markets.
Reliable, consistent trade execution
Peace of mind that your trades are executed swiftly, with a 99.78%* execution rate of less than a second.
Global market leader
We have over two decades of experience in providing innovative products and helping traders achieve their goals.
Protecting your funds is our priority
We never engage in proprietary trading
We enforce robust bank review and monitoring guidelines which are set by the Risk Committee of StoneX Group Inc. (NASDAQ: SNEX)
All customer deposits are kept separate from our own operating funds and distributed across a network of banks. We enforce robust bank review and monitoring guidelines which are set by the Risk Committee of StoneX Group Inc.
COLAWOOD TECH FUNDS is registered with the Commodity Futures Trading Commission (CFTC)
COLAWOOD TECH FUNDS is a member of the National Futures Association (NFA)
We Offer
Tight spreads
We pride ourselves on tight spreads and straightforward pricing that's fully transparent. With us, you’ll always know where you stand.
Fast execution
You can have total confidence in our quality and reliable execution. And unlike other providers, we don’t outsource execution responsibility, meaning that we are fully accountable for every trade.
What’s more, our execution could save you money. If the market reaches a better price from when you placed your trade, our price improvement technology automatically ensures you get the improved price
We are financially secure and regulated
When you trade, you should have complete peace of mind that you're with a fully regulated and financially stable provider. We have held this status by providing market access to our traders since 2019.
We are also fully regulated by the NFA and the CFTC. This means we treat transparency, execution, and all things trading with the intention to be client focus
Frequently asked questions
Where is forex traded?
Forex is traded via a global network of banks in what’s known as an over-the-counter market – unlike shares and commodities, which are bought and sold on exchanges. Because of this, you can trade forex 24-hours a day.
FX trading is split across four main ‘hubs’ in London, Tokyo, New York and Sydney. When banks in one of these areas close, those in another open, which is what facilitates round-the-clock trading.
However, there’s no physical location where these banks and individuals trade with each other. Instead, it is entirely online.
Why do people trade currencies?
People trade currencies for lots of different reasons. You’ve probably traded a currency if you’ve ever bought goods overseas, for example, or gone on a foreign holiday. However, the vast majority of FX trading is done for profit.
Currencies are constantly moving in value against each other. On any given day, the pound might be rising against the dollar, while the euro falls against the Swiss franc. Forex traders buy and sell currency pairs to try and take advantage of this volatility and earn a return.
For instance, if the pound is rising against the dollar, you might buy GBP/USD. When you buy this pair, you’re buying pound sterling (GBP) by selling the US dollar (USD). Then, if the pound continues to outpace the dollar, you can sell the pair to exchange your GBP back for USD and keep the difference as profit.
Putting your ideas into action
A currency's value will fluctuate depending on its supply and demand, just like anything else. Currencies trade on an open market, just like stocks, bonds, computers, cars, and many other goods and services. A currency's value will fluctuate depending on its supply and demand, just like anything else. If something increases supply or lowers the demand for a currency, that currency will fall. For example, when Greece threatened to default on its debt, it threatened the existence of the euro, and investors around the world rushed to sell euros.
How do we know which currencies will rise and which will fall?
Over the years, our forex trading team has developed several methods for figuring out how far currencies will go.
Fundamental Analysis: Since currencies trade in a market, we look at supply and demand. This is called fundamental analysis. Interest rates, economic growth, employment, inflation, and political risk are all factors that can affect supply and demand for currencies.
Technical Analysis: Price charts tell many stories and at times we depend on them in making trading decisions. Charts can point out trends and important price points where traders can enter or exit the market if you know how to read them.
Money Management: An essential part of trading. All traders need to know how to measure their potential risks and rewards and use this to judge entries, exits, and trade size.
Our Core Principles
Forex trading is the means through which one currency is changed into another. When trading forex, you are always trading a currency pair – selling one currency while simultaneously buying another.
Each currency in the pair is listed as a three-letter code, which tends to be formed of two letters that stand for the region, and one standing for the currency itself. For example, USD stands for the US dollar and JPY for the Japanese yen. In the USD/JPY pair, you are buying the US dollar by selling the Japanese yen.
Some of the most frequently traded FX pairs are the euro versus the US dollar (EUR/USD), the British pound against the euro (GBP/EUR), and the British pound versus the US dollar (GBP/USD).
To keep things ordered, most providers split pairs into the following categories:
Four types of forex pairs:
Major pairs - seven currencies that makeup 80% of global forex trading. Includes EUR/USD, USD/JPY, GBP/USD and USD/CHF
Minor pairs - less frequently traded, these often feature major currencies against each other instead of the US dollar. Includes: EUR/GBP, EUR/CHF, GBP/JPY
Exotics pairs- a major currency against one from a small or emerging economy. Includes: USD/PLN, GBP/MXN, EUR/CZK
Regional pairs - pairs classified by region – such as Scandinavia or Australasia. Includes: EUR/NOK, AUD/NZD, AUD/SGD
Most forex transactions are carried out by banks or individuals by seeking to buy a currency that will increase in value against the currency they sell. However, if you have ever converted one currency into another, for example, when traveling, you have made a forex transaction.
Why Colawood Tech Funds ?
A lot has happened since 2019. But throughout all that time we’ve remained steadfast, providing traders with the stability and opportunities they need to make their mark on the financial markets.
Reliable, consistent trade execution
Peace of mind that your trades are executed swiftly, with a 99.78%* execution rate of less than a second.
Global market leader
We have over two decades of experience in providing innovative products and helping traders achieve their goals.
Protecting your funds is our priority
We never engage in proprietary trading
We enforce robust bank review and monitoring guidelines which are set by the Risk Committee of StoneX Group Inc. (NASDAQ: SNEX)
All customer deposits are kept separate from our own operating funds and distributed across a network of banks. We enforce robust bank review and monitoring guidelines which are set by the Risk Committee of StoneX Group Inc.
COLAWOOD TECH FUNDS is registered with the Commodity Futures Trading Commission (CFTC)
COLAWOOD TECH FUNDS is a member of the National Futures Association (NFA)
We Offer
Tight spreads
We pride ourselves on tight spreads and straightforward pricing that's fully transparent. With us, you’ll always know where you stand.
Fast execution
You can have total confidence in our quality and reliable execution. And unlike other providers, we don’t outsource execution responsibility, meaning that we are fully accountable for every trade.
What’s more, our execution could save you money. If the market reaches a better price from when you placed your trade, our price improvement technology automatically ensures you get the improved price
We are financially secure and regulated
When you trade, you should have complete peace of mind that you're with a fully regulated and financially stable provider. We have held this status by providing market access to our traders since 2019.
We are also fully regulated by the NFA and the CFTC. This means we treat transparency, execution, and all things trading with the intention to be client focus
Frequently asked questions
Where is forex traded?
Forex is traded via a global network of banks in what’s known as an over-the-counter market – unlike shares and commodities, which are bought and sold on exchanges. Because of this, you can trade forex 24-hours a day.
FX trading is split across four main ‘hubs’ in London, Tokyo, New York and Sydney. When banks in one of these areas close, those in another open, which is what facilitates round-the-clock trading.
However, there’s no physical location where these banks and individuals trade with each other. Instead, it is entirely online.
Why do people trade currencies?
People trade currencies for lots of different reasons. You’ve probably traded a currency if you’ve ever bought goods overseas, for example, or gone on a foreign holiday. However, the vast majority of FX trading is done for profit.
Currencies are constantly moving in value against each other. On any given day, the pound might be rising against the dollar, while the euro falls against the Swiss franc. Forex traders buy and sell currency pairs to try and take advantage of this volatility and earn a return.
For instance, if the pound is rising against the dollar, you might buy GBP/USD. When you buy this pair, you’re buying pound sterling (GBP) by selling the US dollar (USD). Then, if the pound continues to outpace the dollar, you can sell the pair to exchange your GBP back for USD and keep the difference as profit.
Putting your ideas into action
A currency's value will fluctuate depending on its supply and demand, just like anything else. Currencies trade on an open market, just like stocks, bonds, computers, cars, and many other goods and services. A currency's value will fluctuate depending on its supply and demand, just like anything else. If something increases supply or lowers the demand for a currency, that currency will fall. For example, when Greece threatened to default on its debt, it threatened the existence of the euro, and investors around the world rushed to sell euros.
How do we know which currencies will rise and which will fall?
Over the years, our forex trading team has developed several methods for figuring out how far currencies will go.
Fundamental Analysis: Since currencies trade in a market, we look at supply and demand. This is called fundamental analysis. Interest rates, economic growth, employment, inflation, and political risk are all factors that can affect supply and demand for currencies.
Technical Analysis: Price charts tell many stories and at times we depend on them in making trading decisions. Charts can point out trends and important price points where traders can enter or exit the market if you know how to read them.
Money Management: An essential part of trading. All traders need to know how to measure their potential risks and rewards and use this to judge entries, exits, and trade size.