? What is Forex
The foreign exchange market, or Forex (FX) for short, is the largest financial market in the world and
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🙂زائرنا الكريم أستغل وقت الانتظار بالذكر و الاستغفار🙂
involves buying and selling currencies
You may have already entered the foreign exchange market unnoticed by ordering imported shoes or purchasing currency while on vacation. Traders look to foreign currencies for a number of reasons, including:
- T- The size of the foreign exchange market
- And a wide range of currencies to trad
- D- The level of bearish volatilit
- L running cos
- Trade 24 hours a week
This article is useful for traders of all skill levels. If you are new to currency trading or want to learn more, this article aims to provide a solid foundation for the foreign exchange market.
Description of the foreign exchange market
In short, the foreign exchange market behaves like most other markets in the sense that it depends on supply and demand. In a very simple example, if European citizens had a high demand for Euros, they would exchange Euros for dollars. The value of the US dollar will increase and the value of the euro will decrease. Please note that this transaction only affects the EUR / USD currency pair. For example, the US dollar will not decline against the Japanese yen.
 ? What is M Oats FOREX Market
In fact, the above example is just one of many factors a foreign exchange market may possess. Other events include general macroeconomic events such as the election of a new president, or country-specific factors such as current interest rates, GDP, unemployment, inflation, and the debt-to-GDP ratio. And many more. The best traders use the economic calendar to keep track of these important economic posts and other posts that may drive the market.
? What makes Forex
The foreign exchange market allows large companies, governments, retailers, and individuals to exchange one currency for another. This is done in the over-the-counter (OTC) market through the interbank market, not the central exchange.
The advantage of interbank forex trading is that you can trade forex 24 hours a day (one week). After the Asian trading session, European and UK banks will go online before moving to the US. The next day, when the US period enters the Asian session, the full trading day ends.
According to a three-year BIS survey in 2016, what makes this market more attractive to traders is the most liquid market in the world, with an average daily turnover of $ 5.1 trillion. Around it. This means that traders can enter and exit a position easily. Buyers and sellers are considering currency exchange.
Learn more about the size and liquidity of the foreign exchange market.
What is Forex? How it works
Many people think about how to make money from Forex trading, but fortunately the basics of forex trading are very simple. If you think that the value of the coin will increase (increase), then buy a coin. This is called "long". If you feel the coins are declining (depreciating), sell them. This is called "short".
? Who is T Rades FOREX
There are two main types of foreign exchange dealers in the market: the capped and the speculator. Residents always try to avoid sudden fluctuations in exchange rates. Think about large conglomerates like Exxon and what they look like to reduce your exposure to currency fluctuations.
On the contrary, speculators look for risks and are constantly looking for exchange rate fluctuations to take advantage of them. This includes the large offices of major banks and retailers.
Read a quote from FOREXQ
All traders need to understand how to read foreign exchange rates in order to set prices to enter and exit a trade. Looking at the currency rates below, the first currency of the EUR / USD is called the base currency, the Euro, and the second currency (USD) for this pair is called the floating or quote currency
In most foreign exchange markets, rates are presented in 5 digits after the decimal point, but the first 4 digits are the most important. The number to the left of the decimal point indicates a floating currency, so in this example the US dollar is 1. The next two digits are cents, in this case 13 US cents. The third and fourth numbers are 1/100 and they are called points.
It is important to note that numbers up to the fourth digit after the decimal point are called "points." Therefore, if the euro falls in value against the US dollar by 100 points, the new selling price will reflect the fall in price. 1.1252. 8. It is cheaper to buy one euro against the US dollar.
? Why trade foreign exchange
Forex trading has many advantages over other markets, as shown below.
Low transaction costs: Forex brokers usually make money from the dividends as long as the position is open and closed before the rollover fee is charged. Therefore, foreign exchange transactions are advantageous compared to the fee-requiring markets.
Low Spread: Due to liquidity, the spread between bid and ask for major currency pairs is very small. When trading, the spread is the first hurdle to overcome when the market moves in your favor. The bonus points that change in your favor are net profits.
Increase Profit Chances: Forex trading allows traders to open speculative positions in ascending (bullish) and bearish (bearish) currencies. Additionally, traders have different currency pairs to identify profitable transactions.
Leverage: Foreign exchange transactions include whatever is leveraged. Meaning, traders don't have to pay the full amount of the transaction, but instead ignore some of the value. This can increase your profits and losses. DailyFX provides a disciplined approach to managing risk, limiting reliable effective leverage to 10 or less per item.
New to Forex? There is a comprehensive guide to help you learn the basics of trading.
Ready forex requirements
- Base currency: It is the first currency that appears when estimating a currency pair. Looking at EUR / USD, the Euro is the base currency.
- Variable / Estimated Currency: This is the second currency in the specified currency pair, the US dollar in the example EUR / USD.
- Bid Organizer: The bid price is the highest price the buyer (buyer) is willing to pay. When selling currency pairs, the price is usually displayed to the left of the price, often in red.
- Question: This is the opposite of the offer and is the lowest price that the seller will accept. If you want to buy a currency pair, this is usually the price shown in blue to the right.
- Spreads: The differences in selling prices, which are the actual differences in the basic foreign exchange market, in addition to the additional spreads added by the broker.
- Pip / Pip: The point or point indicates that the number moves to the fourth place after the decimal point. Often these are the movements of traders in currency pairs. For example, the price of the GBP / USD rose by 100 pips. Today.
- Leverage: Leverage allows traders to trade in positions, leaving only a small fraction of the total trade value. This allows traders to manage large trades with less capital. Leverage increases profits and loss
- The field: the difference between the amount required to open a leveraged position and the total value of the position and the funds provided by the broker.
- Collateral claim: when the positive or negative profit or loss of all investment capital falls below a certain level (margin requirement).
- Liquidity: A currency pair is fluid when it is easy to buy and sell due to the large number of participants trading the currency pair.
- Free resources and guides to learn foreign exchange trading
- If you are just starting your trading journey, it is important that you understand the basics of trading in our market. New guide to foreign exchange trading.
- We also offer a set of trading guides that complement Forex knowledge and development strategies.
- Our research team analyzed over 30 million transactions in the real world to describe successful traders. Enable these features to gain an advantage in the market.
- Traders are often concerned about the feelings of retail customers when trading in the popular foreign exchange market. DailyFX provides this data based on customer sentiment towards IG
- The foreign exchange market has evolved over the centuries. For an overview of the most important events that make up $ 1 trillion daily, see our article on the history of forex.
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