Learning forex is neither easy nor difficult, but it requires certain capabilities and skills of individuals, and forex focuses on learning to trade global currencies, it requires individuals to have knowledge about the main principles of understanding global currency trading and the foundations of forex.
What is forex?
Another frequently traded forex term is the foreign exchange market, which refers to the place where currency exchange takes place, such as the exchange of the pound for the dollar, and the exchange of the euro for the dollar.
If you look into forex trading through the internet, you may be wondering what are the best ways to get started in forex trading.
It is important for those who want to learn forex to have an understanding of the markets and methods of forex trading, in order to be able to manage and bypass risks in a more effective way, and make profitable trades.
Forex market
The forex market is the most liquid and easy to access market. It is an over-the-counter market through which traders and investors buy and sell currencies. It is the largest global market for financial trading.
Being the largest financial trading market, in a day, up to 5 trillion US dollars are traded.
Forex learning basics
At the beginning of learning anything, it is
necessary to know the basics and basic rules for this thing, in addition to
knowing the common terms, so to learn forex it is necessary to know its basics,
which are:
- margin.
- contracts.
- currency pairs.
- Contract size.
- Swap.
- trading platforms.
- contracts.
Forex pairs
There are currencies that are frequently traded
in the forex market, and the most famous of these currencies that are
constantly traded are the pound sterling, the US dollar, the euro, the Japanese
yen, and the Swiss franc, where it is:
- The British pound against the US dollar.
- The US dollar against the Swiss franc.
- The euro against the US dollar.
- The US dollar against the Japanese yen.
Forex CFDs
While you are searching for ways to learn forex, you may have come across such a term, which is the term forex contracts for difference, and it is one of the ways to trade forex, there are two ways to trade forex, the first way is contracts for difference, while the second way is spot forex.
The function of spot forex is to buy and sell the actual currency, as this method allows you to buy a certain number of pounds sterling against the euro, and in the case of an increase in the value of the pound sterling, in this case you can exchange the euro for the pound and get more money compared to the purchase price you made Previously.
While the term contracts for difference, it refers to a contract that is used in the prices of financial instruments with the aim of representing the movement of them, but in terms of forex, it refers to the ability to benefit from the price movement without the presence of the asset instead of buying and selling a large number of currencies.
Learn forex
Trading Tools (Learn forex)
Broker
The tasks of the trading broker are to search for the right person you want to sell to, in need of buying shares, gold or euros, the broker here connects you to the currency market to choose the seller or buyer you need.
Due to the tremendous technological development we are living in, you may not meet with the other person face to face, as the buying and selling process can be completed by pressing certain orders made possible by technology.
You must make sure that the broker has the best
license, to protect your money.
Trading and charting platform
The trading platform helps you to view the charts of the price history of the traded instrument, in addition to giving you the appropriate arrangement to manage your trading operations, an example of these platforms is the MetaTrader platform.
MetaTrader platforms allow you to trade on a number of different markets such as commodities, global indices, energy and stocks related resources. Metatrader platforms also help in learning forex trading.
How to learn forex
Before starting to learn forex, it is recommended that you at least be familiar with trading and learn it, and the basis of learning forex depends on step-by-step learning, and we will show here the steps to learn forex:
Determine the time frame
Due to the lack of time and the busy lives of individuals, when you start learning forex you must organize and determine the time of trading.
You should be aware of when you can shed light on the time and markets that you want to analyze, because, this will help you a lot in making the right decision on the trading process.
In addition to the time element, you should set your goal when highlighting and looking at the markets, as this will help you win deals and make the right decisions.
You can trade through the following sessions:
- American session: It starts from one in the evening until nine in the evening, according to GMT.
- European session: It starts from six in the morning until five in the evening, according to GMT.
- Asia session: It starts from ten in the evening until five in the morning, according to GMT.
Forex Explanation
It is a very popular forex trading market with a large volume of liquidity amounting to 4 trillion dollars. What distinguishes forex from others is the number of hours it is open for trading throughout the day.
The factors affecting trading are stability, whether economic or political. When you enter the forex trading market, you take a currency pair and buy and then sell in another currency.
Trade with confidence and you will win but only
start when you learn well because learning is your companion in this way and
knowledge of the trading market from your experiences.