How to trade pairs system in the forex market?
How to trade pairs system in the forex market? Trading in the forex market takes place in the pairs system where all two currencies are combined together in one pair to trade one currency against the other. It means selling one currency in exchange for buying another at the same time, meaning that the currency pair contains two currencies, a base currency, and a counter currency, for each pair of Currency pairs An exchange rate, expressing what is required to be paid in the base currency to obtain one unit of the counter currency. For example:
To get one euro, 1.17189 US dollars would have to be paid, that is, one euro is equal to one dollar and 17 cents.
What are the forex basics you need to know before you start trading forex?
There are basics that you should know their meaning before trading forex, which are:
Currency pairs traded in forex.
The spread or the price difference or the difference in the price of buying and selling.
What is a pip or pip and how do you calculate profits and losses in forex.
The method of buying and selling, the size of the deal, and the contract in forex.
What are leverage and margin or margin in forex?
What is a Margin Call or Stop Out?
How do you get started in currency trading?
The currency trading market is a huge market available to everyone, and you can easily start trading currencies by opening an investment account with a forex company or brokerage company, and brokerage companies provide facilities for individuals or the so-called leverage or margin trading, which enables them to trade in large amounts compared to the deposited capital. In order for an individual to trade in forex he must:
First: Learn the basics of forex trading and the most important forex terms.
Second: Learn how to use the forex trading platform
Third: Learn to analyze the movement of forex and currency prices.
Fourth: learn capital management in forex.
Fifth: Make a plan to trade forex.
Sixth: Trade with a demo account before risking real money.
Seventh: Choosing the best forex broker and opening a real account.
Is currency trading profitable? And what are the risks of currency trading?
Currency trading is characterized by its flexibility compared to trading stocks in terms of risk management. A trader in the currency market can achieve very high returns whenever he decides to increase the risk more, as currency trading is often done using leverage and the margin system, which doubles the amount of money traded compared to its real value, and this causes the risk of investing in the currency market. So you should make sure to learn currency trading well before you start and only trade with redundant funds.
How do I trade forex?
Individuals can trade in forex through licensed brokerage firms, where the trader opens a trading account for him in the brokerage company, and the broker will provide him with facilities or financial leverage that enables him to trade in the market multiple times the deposited capital.