How can forex trade for beginners?
How can forex trade for beginners? The forex market is the largest financial market in the world in terms of liquidity and trading volume, reaching $6.6 trillion per day in April 2019, equivalent to 25 trillion Saudi riyals per day. Forex cannot be compared to any other financial market in terms of liquidity, for example, the New York Stock Exchange NYSE, the world’s largest stock market, has a daily turnover of $70 billion.
Who trades the forex? What is the reason for its huge liquidity?
This huge liquidity in the currency market is due to the presence of different categories of traders such as major investment banks, central banks, investment funds, investment management companies, brokerage companies, individual traders, and traders for non-financial purposes such as hedging purposes, in addition to the development of means of communication and online trading, And the use of financial facilities or leverage to trade in forex, this is what attracts more and more investors to the currency market day by day.
The most important features of the currency market
Huge liquidity and high trading volume in forex.
Forex trading is open 24 hours 5 days a week.
Forex trading is done in a decentralized way – OTC.
Ease of following the forex market and limiting currency news.
The possibility of making a profit during the rise or fall of currencies.
The possibility of trading in small amounts thanks to the financial leverage.
Ease of opening a real account in forex.
Disadvantages of the currency market
The degree of volatility and price activity.
Weak supervisory or regulatory side.
When can forex be traded? Forex market working hours and trading hours
The forex market is a decentralized market that operates through various means of communication around the world without a specific geographical headquarters as a center for trading.
The forex market trades in four main periods: the American, European, Asian, and Australian trading period, so trading does not stop throughout the day as these periods overlap each other and continue to the next day.
What currencies are there in the forex market? What is the meaning of currency pairs?
What currencies are traded in forex? As we explained earlier, forex is the foreign exchange market, so traders trade on the currencies of countries and the most famous of these currencies are the currencies of major countries, which have economic weight, and often attention is paid to 8 currencies as they are considered the most important and highest traded among the currencies of the world, namely:
The US dollar is the currency of the United States of America.
EUR – the currency of the European Union countries.
GBP – the currency of Britain.
JPY – The currency of Japan.
Australian dollar AUD – the currency of Australia.
New Zealand dollar NZD – the currency of New Zealand.
Canadian dollar CAD – the currency of Canada.
Swiss Franc CHF – the currency of Switzerland.