How to trade in the currency trading market

Forex or the currency trading market is the largest financial market in the world, where about 3 trillion US dollars are traded on a daily basis through trade in currency trading, unlike all other financial markets, and the forex market does not have a specific physical place or a clear center It is operated through an electronic network linking banks, companies and individuals who trade in one currency for another.

Currency exchange

Currency exchange

The difference between the currency market and the stock market

As for the forex and stock markets, they are similar in some things, which is that both involve buying and selling operations in order to achieve profits, but there are also many clear points of difference, other than the stock market, because forex has a greater degree of liquidity, and this means that Larger amounts of money are exchanged on a daily basis, and another major difference when comparing the forex market to the stock market is that forex does not have a specific place to exchange it and it is never closed, forex also involves trading between banks and brokers all over the world. The world also gives the opportunity to access the market 24 hours a day during the work week.

It is worth noting that there are some other differences between the stock and currency markets, including that the forex trade offers greater financial leverage than that found in the stock market. When someone decides to invest in the forex market, he can expect to achieve higher profits, but certainly this If he is qualified to do so, even if he is fully aware of the nature of work in this field, especially since in parallel with this feature that we mentioned, it is logical to say that the possibilities of loss are also greater and with large amounts of money in the same market.

There are many terms when dealing with the market Currency exchange Learning forex trading may be somewhat complicated for any beginner, when we look at the names that are used in forex, we will find that the pair symbol consists of two parts, the first part expresses one of the currencies, while the second part expresses the second currency that is used For example, the symbol usdjpy means the US dollar and the Japanese yen, and it is very important and necessary to be aware of what currency symbols mean when you start learning forex, and there are a large number of books and websites specialized in teaching traders how to trade in forex.

How to choose a good forex broker

For people who use forex, a trading broker is sometimes a good idea, brokers are those who are specialized and their expertise is not valued for money, especially for a novice trader, when you want to look for someone to act as a broker, there are many factors to consider, One of these factors when choosing a forex broker is to deal with a broker who offers low spreads, and the spread is calculated in points, or the difference between the purchase price of a particular currency and the selling price for it at some point, and because brokers in forex do not receive commissions, they get Their own income via the spread or the difference, when choosing a broker you should look at this information carefully and then compare it with what other brokers provide.

This is also one of the necessary things that you must remember, when looking for a forex broker, look for one that has the support of one of the major financial institutions, forex brokers are usually affiliated with major banks or similar types of financial institutions, if the broker is not affiliated With something like this, you have to keep looking for others, in addition to that the broker is better to be registered with the Futures Commission (FCM) and subject to the rules of regulation of the Commodity Futures Trading Commission (CFTC), you must make sure that the person acting as the broker To be backed and registered by a major bank or institution, as this ensures that you are dealing with a reliable broker who has sufficient experience in the field of forex trading.


Mohamed Abdel Khaleq
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