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What is Forex| The basics of learning Forex and proper trading


What is Forex

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What is Forex?

The foreign exchange market or foreign exchange trading. All of this falls under one name, which is “Forex.” The word Forex is an abbreviation of the term Foreign Exchange Market, which means the foreign exchange market, as symbolized by the abbreviation FX.

Forex is one of the most famous financial markets around the world. It is a huge financial market in which currencies are traded between millions of investors, banks, investment funds, and countries. These operations are used for several purposes, the most important of which are: benefiting from changing currency exchange rates and differences and making a profit.

Forex trading has spread due to the terrible technological development achieved by scientists, especially after the spread of the Internet and modern means of communication in almost every home. As for the Forex market, it is a decentralized market with no geographical borders.

How did the forex markets start?

Forex trading was based on the principle of the barter system that existed in the past, before the invention of currencies. In ancient times, people used to practice the trade process by bartering goods with each other due to the lack of approved money or banknotes at that time.

Soon, science was developed until humans turned those media used in the barter process, including gold, silver, and precious metals, to using paper currencies, and this was the new beginning for the emergence of money and currencies that we know now.

What is the trading volume in the Forex market?

Forex markets are among the largest financial markets in the entire world in terms of liquidity and the volume of trading that takes place in them. Forex cannot be compared to any other financial market in terms of size, such as stock exchanges and others.

This huge amount of liquidity in the currency market is due to the presence of different categories of traders and investors, such as major investment banks, in addition to the development of communications and technology via the Internet and the use of financial facilities provided by Forex trading, and this is what always attracts more investors to these markets.

Forex features

  • Large liquidity and high trading volume.
  • Forex markets enable you to trade 24 hours, 5 days a week.
  • Ease of inventorying currency news and trading correctly.
  • Making profit during ups and downs in currencies.
  • The ability to trade with small amounts at first, which is useful for beginners.
  • The ease of opening a Forex account and the simplicity of its main destination.

The basics of learning Forex and proper trading

Disadvantages of the currency market

Constant fluctuation in currency prices.

High risk in currency trading.

Weakness of the regulatory body and supervisory aspect of these markets.

How to start trading currencies - trading basics

Currency trading, as we mentioned above, is a huge market available to everyone. You can easily start trading currencies by opening an investment account with a Forex company, but you have to consider some things in the beginning:

  • First - learn the basics of trading and the most important strategies that will make you money later.
  • Second - Learn how to use different Forex platforms.
  • Third - Learn to analyze currency price movements.
  • Fourth - Learn capital management.
  • Fifth - Create your trading plan.
  • Sixth - You must initially trade with a demo account in order to reduce the risk with your real money.
  • Seventh - Choose the best broker to enter the world of Forex and open a real account for you.


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