Forex Trading Method

What is the Forex market?
The Forex market is a network of buyers and sellers who work without a central exchange where one currency is exchanged against another currency among participants at pre-agreed profit rates.

Forex refers to foreign currencies. Forex traders usually understand banks, investors, and currency swaps from companies, governments, brokers or individuals.

The Forex market is the largest and most liquid financial market in the world, trading in the Forex market in one day, which is traded on Wall Street in a month. As of April 2017, the average daily trading volume in the global foreign exchange market reached $ 4.98 trillion.

In terms of the most heavily traded currencies, the US dollar is permanently on this throne, followed by the euro as the single European currency and then the Japanese yen.

Where are the major Forex market centers?
The global Forex market centers are in London, New York, Hong Kong, Tokyo and Singapore. While stock markets operate only during regular business hours, the currency market operates 24 hours a day, 5 days a week. Starting from Sunday at 5 pm EDT with the opening of markets in Sydney and Singapore and continuing straight to the close of the New York market on Friday at 5 pm at the same time.

Forex is traded by buying and selling currencies in lotus units and equal to 1 lot 100.000 units of the base currency. Forex is like other other investment operations where you should buy when prices are low and sell when they go up. There is also a direct correlation between demand and prices. The higher the demand, the higher the price. Although we are talking about a global market, it takes into account everyone, including the Arab and Islamic world, and traders can trade Islamic accounts that comply with Islamic law and without interest.

What are the factors affecting the rise in currencies?
Among the factors affecting the high demand for a single currency, rising interest rates, political and economic stability, improved return on savings, stability and safety, which makes the investment environment more attractive, especially in the tourism field.

Currencies are the most traded
·        U.S. dollar
·        euro
·        Japanese Yen
·        Sterling pound
·        The currency market is the most traded in 2018 percentage

Main Forex Market Centers
·        London
·        New York
·        Hong Kong
·        Tokyo
·        Singapore

Stock Market VS Forex Market

Stock market
8000 companies traded in general

The maximum positive effect is 2: 1

Brokerage fees, commissions, clearance and the like

Most intermediaries are available only in official business hours

Forex Market
7 pairs of major currencies
Can benefit up to 200: 1
Free trade commissions
The Forex market is continuously available 5.5 days a week
There are Islamic calculations free of interest

Standard symbols for the most traded currencies
1.     EUR
2.     USD
3.     Canadian Dollar CAD
4.     GBP
5.     HKD HKD
6.     JPY
7.     Australian Dollar
8.     CHF
9.     New Zealand Dollars NZD
10.                        Swedish Krona SEK

The coins are bought and sold in units called lots

Just like any other forex investment, you should buy when prices are low and sell when they are high, or sell when they are high and buy when they are low.

If you buy EUR / USD against 1.4172 and then rise to 1.5172 then you will win, though in the other direction you will lose.

So what makes the currency pair rise or fall?
Supply and demand!

What makes demand more than one currency?

Higher interest rates are a better return on savings
More national stability is safer and more attractive to the banking environment
Tourism People need currencies while traveling

The equation of profit and loss in the currency market
The price when you sell the currency - the price when you buy the currency × the volume = profit or loss

How do you start trading currencies?
Brokers provide demo accounts for Forex trading. You can start trading with monopolies to interpret trading and real-time prices in the market while you learn Islamic accounts free from interest rates and international companies or have a branch in the UAE.

Additional information will benefit you as currency trading begins
- What is Leverage?
Leverage is a facilitation offered by brokerage firms to customers, because of the advantage that individual traders can enter the market, it increases the purchasing power of the amount deposited in your Forex account.

Brokerage companies provide facilities (financial levers) of 1: 100 and more.

- What is the contract size (lot)?
Is a unit of measurement for the size of the transaction in the Forex market as in the kilogram as a unit of measure to express weight.

- What is the PIP point?
The point is the measure that measures a move up / down, so you can calculate the profit and loss on it.


Post a Comment