What is a Confirmation?

Confirmation Definition. A Confirmation in Forex is a process by which the two counterparties to a trade input their instructions to a central system that compares them and, if the instructions agree, confirms them and passes them on for settlement. Generally, a document is exchanged in the process. The written correspondence details the terms of a given trade, including date and time of execution, quantity, price, and commission. Confirmation may also pertain to validating a particular trend in the forex market by observing a different charting timeframe or another technical indicator to gain additional perspectives on a particular pattern.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.