Diet
How to trade forex for beginners
Forex is a market for buying and selling foreign currencies, and it is called an abbreviation for the word foreign exchange market, in which investors buy currencies at a price and sell them at a price that may be after the rise, so they achieve profit or decline for fear of loss.
There is no doubt that Forex trading brings a lot of profits in a short period of time, so many investors accepted it, as Forex trading like gold trading, oil trading, metal trading, gold bullion trading, like the profit of life insurance companies.
The Forex market is the largest stock market in the world, and the trading volume of securities in the Forex market may exceed US $ 5.1 trillion per day.
How to trade forex
Meaning that the volume of investment in the Forex market is more than three times the size of investment in the stock market and futures markets worldwide, and the reason for this is the availability of central banks and major investment banks and major financial companies, in addition to the presence of major financial portfolios and investment funds, all of this resulted in a market Foreign securities trading is characterized by its great strength and stability in general.
What is the way to trade in the Forex market?
The method of trading in the Forex market is summarized by the trader opening a trading account with one of the brokerage companies he trusts and which enjoys great credibility with the clients, and then begins the process of transferring money from his personal account to his balance with the trading company and then he buys the currency pairs that he wants Trading on it and what follows from opening new deals or closing deals.
The process of buying and selling currency pairs at certain times is carried out according to a trading strategy that the investor adheres to in a way that achieves the goals he wants from the deals. During trading operations, the investor in the Forex market has a lot of aspects that he should be familiar with and one of the most important:
Technical Analysis:
Technical analysis is one of the most important factors for successful trading. Certainly, technical analysis will help you to have a clear view of what is happening in the Forex market, and how to make correct decisions at the appropriate times, whether in terms of trading foreign currencies, stocks, commodities or indices. You need to read and analyze the right technical in order to be able to make successful and profitable deals.
Know about options:
Option contracts are the agreement to a contract between two parties, the first is the purchase option and is called "Call", and the second option is the sale option and is called "Put".
The process of trading in options contracts is conducted on stocks, foreign currencies, and indices. There are two types of options: American options and European options.
Knowing the meaning of contracts for difference:
Contracts for difference are financial terms that enable investors to speculate on the rise or fall in the price of foreign currencies, commodities and indices without the need for real ownership of the financial instrument.
Know the trader how to manage money:
One of the necessary things in the foreign exchange market is knowing how to manage money. Brokerage firms allocate a special accountant to each trader to help him know how to manage his money when entering into financial deals through the Forex market.
Find out what a short sale is:
Short selling, or what is known as empty selling, and this is done by the trader borrowing shares owned by a certain company through a financial intermediation company, then selling them for the purpose of buying them at a later time at a low price.
How to choose a brokerage firm in the Forex market
After knowing the most important factors that help you know how to trade in the Forex market, we now know how to choose the right brokerage company for you. Through fierce competition between brokerage firms, each company offers many advantages and characteristics to attract investors, and for this, the foundations and conditions that must be met in the brokerage company that will invest through it must be known.
First: Is the brokerage firm operating legally?
It must be ensured that the brokerage firm operates legally and has official licenses from the competent authorities. Also, the country that granted the license to the brokerage company must know, in addition to knowing whether the brokerage company operates from within the state that granted the license or from outside it, all this to rest assured that that company It operates under a respected regulatory body, applies integrity and transparency standards, and is subject to strict and strict oversight monitoring.
Second: Trading platform transparency and integrity
Choosing a trading platform that works with the most advanced electronic devices, in order to ensure that you do not break down or any malfunction occur, so it stops during work, especially during the times of the issuance of international economic data, which are times when stability must be available, and this matter is one of the things that proves integrity and transparency Trading platform of a brokerage firm.
Third: Providing customer service for forex trading
One of the necessary things that must be met by the mediation company is to provide excellent customer service, and a mediation company must be selected that provides customer service in several languages to facilitate dealing with them, because customer service is the one that answers and answers all your questions and inquiries, and that service provides you with smart solutions and good opinions when You enter new trading deals, and that service must be available permanently throughout the day and throughout the week. In addition, ways to communicate with it will be easy, simple and available through the electronic devices of the investors.
