Forex Definition


  • It is one of the largest financial markets in the world in terms of turnover of more than 4 trillion dollars a day
  • It is trading currency against another currency or trading contracts of companies such as Apple and others or gold, silver and oil, in order to make a profit
  • Currencies are traded in pairs
  • The currency pair trading rate is the value of the quoted currency that you can buy against one unit of the base currency
  • For example
  • The Euro and the US Dollar are the most common currency pairs and traded in the markets
  • When you look for the EUR / USD exchange rate, you want to know how many dollars you can buy for EUR 1 (the base currency)
  • If the EUR / USD exchange rate is 1.2356, then you can buy USD 1.2356 for every EUR 1
  • If the exchange rate is bullish, it means that the base currency is gaining strength against the secondary currency
  • If the exchange rate is in a downward direction, it means that the base currency is weakening against the secondary currency
  • In principle, this means that you can buy almost any currency you want at any time when the market is open
  • Opening hours of the market is the key factor that determines the Forex trading feature
  • The Forex market is open 24 hours a day, 5 days a week
  • Trading in the market begins on a global basis, first in New Zealand and then in Australia, Asia and Europe, finally in the USA, allowing currency trading at any time of the day or night Monday through Friday.
  • What factors affect the Forex market?
  • There are several factors that affect currency exchange rates in the Forex market, such as political and economic stability and monetary policy of countries
  • However, since forex trading is direct, it is speculation that mainly affects market price changes
  • If traders expect that for some reason or event a currency will strengthen or weaken, they will trade and change the price in the market, because the supply and demand of the target currency will change within the market
  • The greater the number of people expecting a currency to move in a certain direction, the more influence on prices in the market

What should I do when trading Forex?

  • When you trade Forex you will always trade on a pair of currencies, ie you will buy or sell a currency against another currency
  • If you expect, for example, that the pound will weaken against the US dollar, you should buy a pound against the US dollar
  • If you expect the opposite (that is, the US dollar will strengthen), you should sell the pound against the US dollar
  • From this point of view, you can always take a position in the direction that assumes that the market will move towards it and thus this will increase the likelihood of your trading opportunities
  • What do I need to start trading in Forex?
  • You need two very important elements. The first is learning. No one knows how to trade without learning how to trade.
  • Note:  You can trade either using technical or fundamental analysis and there is no trading method better than the second only your personal preference and your tendency is to determine the appropriate trading method.
  • The second element is opening a trading account and here we talk about a demo account first to learn how to trade in Forex and training on the fluctuations that occur continuously and then you open a real Forex account to trade it.
  • Forex market does not require you to obtain a certificate or be a technical analyst of the Association of technical analysts, for example or have a high certificate in the basic analysis, if you have money you can open an account with any broker

Control of Forex Brokers

  • Control of Forex brokers is the side that protects the trader You send money to a broker you do not know personally and it is not easy to reach the headquarters of the mediator because of the costs of travel and visa and even traveled Al-Rayyan had a headquarters and the depositors could access it but could not get their full rights.
  • Control of Forex companies is made up of bodies and organizations such as (nfa), the National Commission for Futures Contracts (FCA), the British Financial Supervisory Authority (FSA), the Ministry of Finance and the English Parliament, the Australian Commission, and the Financial Supervisory Authority (ASIC).