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Introduction to FX TradingÂļ

Foreign exchange (FX or forex) is the global market for trading currencies. It is the largest and most liquid financial market in the world, with $9.6 trillion in daily volume.

Sera brings FX trading on-chain by enabling you to trade between thousands of stablecoins — tokens that are pegged to fiat currencies like USD, EUR, GBP, SGD etc.

What is a Currency Pair?Âļ

A currency pair expresses the price of one currency relative to another. It is written as BASE/QUOTE:

  • Base currency — the currency you are buying or selling
  • Quote currency — the currency used to price the base

For example, in EUR/USD = 1.0850:

  • EUR is the base currency
  • USD is the quote currency
  • 1 EUR costs 1.0850 USD

Bids and AsksÂļ

Every currency pair has two prices:

  • Bid — the highest price a buyer is willing to pay
  • Ask — the lowest price a seller is willing to accept

The difference between the bid and ask is called the spread. Tighter spreads mean better pricing for traders.

Why Trade FX with Stablecoins?Âļ

Traditional FX trading requires bank accounts, brokers, and is typically restricted to business hours. Stablecoin FX offers several advantages:

  • 24/7 Trading — Markets are always open
  • Global Access — Trade from anywhere with an Ethereum wallet
  • Transparency — All settlements are verifiable on-chain
  • Lower Barriers — No minimum account sizes or complex onboarding
  • Fast Settlement — Trades settle in seconds, not days

Common Currency PairsÂļ

Major pairs involve the world's most traded currencies:

Pair Name Description
EUR/USD Euro / US Dollar Most traded pair globally
GBP/USD British Pound / US Dollar Also called "Cable"
USD/JPY US Dollar / Japanese Yen Major Asian pair
AUD/USD Australian Dollar / US Dollar Commodity currency pair
USD/SGD US Dollar / Singapore Dollar Key Southeast Asian pair

How Prices MoveÂļ

FX prices are driven by supply and demand, which in turn are influenced by:

  • Interest Rates — Central bank rate decisions affect currency values
  • Economic Data — GDP, employment, and inflation reports
  • Geopolitical Events — Elections, trade policy, and global events
  • Market Sentiment — Risk appetite and capital flows

In stablecoin FX, prices track the underlying fiat exchange rates through arbitrage — when a stablecoin pair deviates from the real-world FX rate, traders have an incentive to correct the price.

Getting Started on SeraÂļ

Ready to start trading? Here's the flow:

  1. Connect your wallet — Visit testnet.sera.cx
  2. Deposit stablecoins — Fund your vault with any supported token
  3. Place an order — Choose a currency pair and place a limit order or instant swap
  4. Monitor and manage — Track your orders and withdraw proceeds at any time

For step-by-step instructions, see the Quickstart Guide.

Coming Soon: DerivativesÂļ

Sera is building on-chain FX derivatives — bringing instruments like forwards and options to stablecoin markets. If you're interested in learning more or exploring early access, reach out to us at support@sera.cx.