Although Forex trading may seem complex at first, a plethora of investors developed a great interest in it since it is a 24-hour market. Forex is simply a market where currencies are traded, and it offers plenty of trading opportunities.
Want to know how to worm your way in Forex? You have come to the right place. We’ve created a guide for you to learn about forex trading and how the currency market looks like, its pros and cons, as well as the best ways and tips for getting successful at Forex trading in a short time تحليل الذهب .
How to Get Started?
Forex trading can usually be done through brokers. Brokers are companies that provide you with market access interbank where all trading operations are carried out. In other words, a broker will provide you with special software so that you can see live currency prices and fluctuations and place buy and sell orders for currencies only with a few clicks. When you decide to interrupt the transaction, the broker closes the market interbank and then credits your account with gain or loss. You will only need a few minutes to open an account with a Forex broker and start trading. You only need internet access. Forex trading platforms are called Meta Trade 4 and 5 (MT4 and MT5) and can be easily downloaded from here. You can use different operating systems, including mobile devices.
How does the Forex Market Operate?
In the Forex market, currencies are always traded in pairs. To determine the relative value of a currency, you must compare it with another currency. When you buy a currency, you automatically sell another currency. This is the motto of Forex trading. Currency pairs in Forex are shown in the form of abbreviations. For example, EUR / USD is the abbreviation of ” Euro against the US Dollar ”, and USD / JPY is the abbreviation of “US dollar by against the Japanese Yen.” If you sell the EUR / USD, then you sell euros and buy dollars.
Let’s understand how traders deal with currencies: The first currency of the pair is called the base and the second is called the quote. The price of the base is always calculated using the quote unit. If the exchange rate of the EUR / USD pair is 1.3, this means that 1 Euro costs 1.3 US dollars. Currency pairs are generally divided into major pairs, cross-currency pairs, and exotic currency pairs. All major pairs include the US dollar and are very popular with traders: EUR /USD, USD/ JPY, GBP/ USD, AUD/ USD, USD/ CHF, etc. Cross-currency pairs include two popular currencies, but do not include the US dollar. The most common crosses include the euro, the yen, and the pound sterling: EUR / GBP, EUR / AUD, EUR / JPY, GBP / JPY, etc.
The Advantages of Being an Online Trader
The forex online broker allows the trader to engage in the currency market and trade forex from the confines of his home. The trading platform acts as an all-inclusive trading system as it includes all the elements you will need to trade forex and many other useful instruments, such as currency pairs, currency pair charts, graphical analysis tools, an interface for placing market orders, and several commissions that you will receive.
Forex online trading is distinguished by its feasibility. After you open your account, you will learn how to analyze the assets of your choice, buy at the best price if you think the price may go up, and sell at the best price if you think the price may go down. If you buy or sell at the right price and consider the risk well, you can potentially generate significant profits!
How are price movements measured?
Foreign Currency traders always use two terms – “pip” and “lot”. These terms are highly important to know because they play a starring role in determining the size of your position and calculating your potential profits and loss.
What do they mean? Well, in the Forex market, the value of a currency is given in pips. Pip is an acronym for “Percentage by Point”. One pip represents the smallest movement that an exchange rate can make and the smallest amount by which a quote can change. For example, if you bought the EUR / USD pair at 1.0500, and your prices have increased to more than 1.0550, this means that you made 50 pips. Regarding, the lot, it is defined as the least quantity that can be traded.
How to use the Economic Calendar in Forex?
The economic calendar is one of the best assets that you can use as a trader to excel at Forex trading. For each date, the calendar provides you with a list of corresponding planned economic publications to one of the main Forex currencies. Pay attention to the date and time of publication and make sure that you have properly adjusted the settings for your time zone. You can see that all the events have different impacts: the more impactful the event is, the more the market movement becomes predictable. So, use the calendar to concentrate on the most important events. The calendar showcases economic indicators and numerical values by expert economists and official sources.
How to open an account with FBS?
Go to frfbs.com, choose “Open an Account”, and register. Registering can be done by your Facebook account if you want. The next step is to choose your account. FBS boasts a wide variety of accounts. If you are a beginner, we recommend that you choose a cent account or a micro account to trade with small amounts of money. If you have experience in the Forex field, you can choose a standard or unlimited account. Note that you will have to add your account number, your trading password, and your trading server on Meta Trader 4 to start. Change the system’s temporary password, confirm your email address, and you are done. It is noteworthy to mention that to withdraw money from your account, you need to verify your profile through your new personal space on the FBS website.
All in all, we have presented for you the most important tips that will get you on the right track to become a Forex trader. We wish you considerable success and prosperity.