INTRODUCTION TO FOREX
What is forex?
Forex is the fastest-growing foreign exchange trading business in the world. it is estimated to have circulated in excess of (US $ 5 trillion). The traders on this market are great banks, great traders, great institutions, hedge fund and ordinary people like you and me.
WHAT HAPPENS TO MARKET
Broadly speaking the market is a place that sold various products. On the forex the commodities are various coins, minerals (gold, diamonds, silver etc.), natural ressources etc.
you can buy the British pound against the US dollar or sell the Japanese yen against the Australian dollar. succinct is generally trade one currency against another currency, which is why the coins are ordered in the form of pairs
DO YOU GET A PROFIT ON A FOREX MARKET?
Currencies we are trading in the form of pairs, in the platform you will see pairs set in the form of pairs (ie two different currencies) eg EURUSD, GBPJPY, CADCHF etc.
note that when you lose a pair of EURUSD it means that you are playing with two different European economies (europe & united states dollars). now as soon as EUROPE stabilizes the economy against the UNITED STATES then the EURUSD pair will buy, ie it will go up.
In the event of UNITED STATES stabilizing the economy against EUROPE then the automatical pair of EURUSD isa sell ie it will fall / fall down.
In short, the profitability will come in line with the price fluctuations in those currencies either downward or upward and downward in one currency’s most stable currency against the other. (NOTE: on forex we don’t do physical stuff, that is, to find a buyer for your product. NO FOREX IS NOT THERE.
HOW DO YOU START DOING FOREX TRADING?
Once you get enough education and become educated / understandable (please don’t mix it here,., .. there is a difference between reading and reading / memorizing and reading is understanding; they are very different things; you can memorize the word PRESENTATION but you don’t know what it means, just to answer the test😊, then note that on forex we do not answer exams so do not memorize, read with understanding.
AFTER seen it IDENTITY THE BUSINESS OF TERM IS THEN FOREX next lesson Tutaingia ITSELF IN FOREX We will see We will begin with BASICS IF THINGS LIKE LANGUAGE, DIFFERENT vocabulary, etc. We will return AGAIN 10 evening, We wish you a good day.
WHO IS THE BROKER?
In short a broker is like your online bank, ie in order to be able to participate in the market you have to go through the broker … Broker enables me and were (RETAIL TRADERS) to be able to participate in FOREX MARKET due to our limited capital and inability to share directly on FOREX MARKET. it should be noted that any lazier retail trader should go through a broker to be enabled to participate in FOREX MARKET.
IS THE BROKER SOLD FOR THE FARMER FOR THE FOREX MARKET?
Broker enables us to engage in the market through something called LAVERAGE. This LAVERAGE is like a loan where the broker lets you get as far as your LAVERAGE is, (This LAVERAGE is one of the most important thing to consider, as it deals directly with profit and loss as well.
SPREAD is a selling and buying difference or else we say the price difference for BROKER sells to his client and to his client. (slightly understand, which is the price difference for BROKER and there at FOREX MARKET).
For example if you place any order then it will start at a loss / reds for a while and then it goes into profit. now, that difference which shows the loss is called SPREAD. In other languages we can also say SPREAD is like a broker payment from his client. (how will he help you free of charge 😂 JOKING)
PRICE IN POINT (pip) is recognized as a price difference from one point to another or a distance from one point to another. Market moving from 1640 to 1660 where we say 20 pive hive pips is a price difference from one point to another.
Despite the fact that forex trading can provide profits, there is a risk. These include Exchange rates risk, Interest rates risk, credit risk and event risk.
The price system and pair graphs exist in the theory of ascending and descending a certain range. And from this theory we gain the ability to predict future predictions. It often goes as we expect and this is usually an advantage but once it has grown it has not gone as we expect the above reasons to contribute. We are aware that FOREIGN ECHANGE MARKET has a deal with multinational currencies, and in the beginning we explained the common CURRENCY represents the economies of a particular country …. one of the factors that causes the economy to grow or weaken is the speeches of leaders, various disasters (storms, earthquakes, terrorism, political events etc.)
look at this case …. Canada is the world’s largest producer of OIL, America is the largest consumer of OIL from Canada where AMERICA needs a BARREL 30 days. America). Now if CANADA reduces the production of OIL something that will lead to AMERICA getting 10 or 20 barrels, then directly in the US will be affected … since production will decline, nation-building efforts will also dip by a certain percentage due to the limited OIL capacity. it is not enough for the industry.
And automatically the CURRENCY of AMERICA (USD) will shake, depreciate against CANADIAN DOLLAR (CAD) and other currencies as well because America will be going through a difficult period in production due to the insufficient level of OIL.
this is how CURRENCY can be affected by sending you RISK or PROFIT to FOREX MARKET.