How to trade Forex?

What is Forex?
Is the foreign exchange market ie currency trading through the sale and purchase for profit, and the Forex market is the largest market in the world at all trading volume of $ 5 trillion per day.

When it comes to trading Forex There are many questions that any ambitious person seeking to enter the Forex market for the first time, this article is prepared for beginners in particular to enable us to answer all questions in an easy way and take a complete picture of what is trading Forex and how to professionalism.

1. What is the term Forex?
Forex is abbreviated term for the expression of foreign exchange or forex exchange, which in English means Forex.

2. Know the Forex market?
The Forex market is a currency buying and selling operation. It is the largest market in terms of liquidity. The daily trading volume in the international currency markets is more than $ 5 trillion. The market operates 24 hours a day, 5 days from Monday to Friday except for international holidays. Via the Internet as additional work for additional income, or as an independent business. As individual traders from around the world are increasingly joining the Forex market through their home trading platform.

Key Participants in the Forex Trading Market:
·        Central banks.
·        Commercial banks.
·        Financial organizations.
·        Governments.
·        Individual investors, and currency speculators.

3. How does Forex trade?
Forex is traded in the currency pairs system, as the value of each currency is determined in another currency and is traded by buying or selling currency against the other.

The most common currency pairs in the Forex market are:
·        EUR / USD (EUR / USD)
·        USD / JPY (USD / JPY)
·        British Pound / US Dollar (GBP / USD)
·        EUR / JPY (EUR / JPY)
·        AUD / USD (AUD / USD)
·        CAD / USD (NZD / USD)
·        New Zealand Dollar / US Dollar (CAD / USD)

4. How can a particular currency pair be read in the trading platform?
The currency that is written on the left in English is the base currency, and the currency that is written on the right in English is the secondary currency.

For each currency pair exchange rate, it is what is paid from the secondary currency to buy one unit of the base currency.

Example: When we say EUR / USD exchange rate at 1.20, it means that the euro is worth US $ 1.20, meaning that to buy EUR 1 you have to pay US $ 1.20.

5 - How can we win in Forex trading? Is the market profitable?
To give an example of a EUR / USD pair, simply:

·        When you buy a certain amount and get a price hike, we will have a gain, but if the price falls, you will lose.
·        When you sell a certain amount of EUR / USD and you get a price drop we also have a gain, but if the price rises we will have a loss.
·        As you can see, it is normal trading like any other trade and its additional advantage that it is possible to profit in the decline and rise if we select the right deal, for the question is the market profitable? It is up to you as the risk ratio is directly proportional to the profit / loss.

6 - Forex trading tools for beginners?
All you need when you decide to start trading online is just a computer with an Internet connection and open a demo or real Forex account for a small amount (starting from $ 500).

- Demo account: It is a suitable account for beginners trading on virtual amounts, which is like the real account in everything but the capital is a default any suitable for training. It is an Islamic account that complies with Islamic Sharia.

7- What are online trading companies?
Online trading companies are a broker between you as a trader and the market, and enables you to:

Open Forex Accounts
Pass your deals selling / buying through them
Provide you with a trading platform that is connected to your personal computer on the one hand and the market on the other hand
Some companies offer Islamic accounts that comply with Islamic law, including those with international branches, including branches in the UAE.

8. What are Islamic Forex accounts?
Islamic Forex accounts are a service provided by Forex companies to suit the Arab and Islamic world.

9 - How to gain experience quickly in Forex?
There are 3 basic ways to gain currency trading experience:
- Experience again and again
- Acquire knowledge and learn Forex
- Communicate with trading experts