What is Forex?
Forex Trading is the largest financial market in the world, with more than $ 3 trillion traded daily. This market is based on trading in global currencies.
How does the Forex market trade?
Forex trading is done by buying or selling "currency pairs" where a trader trades one currency against another. Examples of major currency pairs include EUR / USD, USD / JPY, EUR / JPY, GBP / CHF, CAD / USD and others.
When you open a position in the Forex markets, you are placing a "long" position on a particular currency and a "short" position on another currency. There is no specific central location for the Forex market, so it is one of the most flexible and available online trading for all investors from around the world.
Is forex trading risky?
The short answer is "yes". However, there are many methods and methods that can be used to reduce risks. These include risk trading: market analysis (technical analysis of currencies and basic currency analysis), appropriate choice of trading systems, use of signal providers, Forex recommendations, and trading through automated Forex programs. However, the best way to reduce risk, which is the long and arduous way, is to teach enough Forex related to the Forex markets, before you start trading on a real Forex account. But most experts advise you to use a demo Forex account for a certain period of time before you make real money.
What are the hours of the Forex market?
The Forex market is characterized by 24 hours of operation. The "Forex Day" begins in Sydney, Australia, and travels around the world through Tokyo, London, and New York, according to the time it operates.
What is the difference or similarity between the Forex markets and the stock market or investment funds?
There are many things that are common to Forex markets, stock markets or other trading markets, but in general, you can say that the Forex markets are trading operations with a shorter life than operations in other markets. Most Forex traders do not leave their positions open overnight, with a fee called "extension fee". The stock market is much smaller than the currency market, making learning harder.
How long will Forex positions be maintained?
This depends mainly on the trader's desire, but statistics show that 80% of Forex trading lasts for 7 days or less, 40% of which ends in less than two days. In general, traders in the Forex markets close their positions when they make profits from these deals. While a stop loss occurs when the loss reaches a certain limit or when another position becomes available and the trader decides to transfer the money to it.
How often do Forex markets trade?
Since most Samsamra do not charge for opening new positions, and the market is open around the clock, traders open multiple positions throughout the day. According to recent studies, the average position opened by the trader daily is between the twenty-twenty status.
The first steps in Forex
What do I need to start trading in the Forex markets?
Unlike in other markets, you do not need much to start trading in Forex. You do not need a license, and you can start with very little capital. However, it is not wise to start trading in this market without adequate prior preparation, which includes reading, studying and identifying the entrances and exits of this market, in addition to choosing a reliable broker.
How do I learn to trade in Forex markets?
The Internet is full of simple articles for new traders and lessons on complex Forex strategies for experts. However, at DailyFX we have worked for a long time and seriously to become the most efficient source of information on Forex markets, especially for novice traders. Click on this link to read all the articles about Forex explanation. We also recommend you read more in the free Forex books available on the site.
Currencies in Forex
How are currency rates determined?
The Forex market is one of the most volatile markets in the world, and since it operates 24 hours a day, this market is never calming. Prices depend on a wide range of economic and political factors. Everything can affect the Forex markets, but the main factors affecting currency rates are: interest rates, inflation and political and economic stability of countries. Governments often enter the Forex arena to influence currency prices, either by flooding the market with the country's currency in order to lower its price, or by buying large amounts of the currency in order to raise the price. However, given the size of the Forex market, there is no single entity that can affect the market significantly.
What do terms like Bid, Spread, Rollover, etc. mean?
What is the best way to manage (or avoid) the risks that you can face while trading?
There are many ways to avoid high risks in Forex markets, but the basic tools used by most investors are "stop loss", "take profits" and "limit orders" . It is possible, through these tools, to reduce risk and increase the probability of profit.