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Who is rolling?

A trader is a person who buys and sells securities on the same day without any open deals in the market, where the trader makes trades over several days in the hope of taking advantage of long-term fluctuations in the stock market, and the sale may take place on the same day or in several days Depending on the fluctuations in the market, one of the most important terms that a trader must know is the forex market. This term refers to the foreign exchange market, which is the place in which traders conduct their trading operations, and the trader must know the most important methods of forex trading so that he can engage in this market to achieve Maximum profit and loss avoidance.

What is forex trading?

Forex trading is known as the process of changing one currency into another for many reasons that may be for trade or tourism. It is a decentralized global market in which currencies are exchanged and traded according to their exchange rates. One of the most unique features of this international market is that there is no central market, but currencies are traded electronically Through computer networks, forex is one of the largest and most liquid markets, as the daily volume of currency exchange exceeds approximately 5.1 trillion dollars, and the mechanism of forex trading lies in order to make a profit by selling the currency in the event of its high price, and buying currencies while it decreases.
Forex Trading Methods
Forex Trading Methods

Forex Trading Basics

Currencies are traded by quoting two different currencies, with determining the value of one currency against the other, where the first currency is known as the base currency and the second is known as the quote currency, and these currencies are traded in the forex market through selling, exchanging and speculating as well as converting them for the purposes of international trade and investment. It is one of the methods of forex trading, and the forex market continues 24 hours a day, five days a week, and forex trading operations are based on the simultaneous purchase of one currency and the sale of another, but the same currency pair can be considered as one unit - a tool that is bought or sold. A currency pair, the base currency is bought and the quoted currency is implicitly sold. The bid (purchase price) represents how a lot of the quote forex you want to get one unit of the bottom forex.

On the contrary, when the currency pair is sold, the sale is for the base currency buy quote currency The ask (sale price) of a currency pair represents the amount to be received in the quote currency to sell one unit of the base currency, unlike in the stock or commodity market; Trading is in currencies, which means that the process of selling one currency to buy another currency, for stocks and commodities, cash is used to buy an ounce of gold or a share of stocks, which are affected by: interest rates, GDP information, and major economic announcements.

Forex Trading Methods

Every trader must choose the brokerage company carefully before starting to trade forex, as most brokerage companies offer a free demo account without risks so that the trader understands the methods of forex trading, and one of the most important things that the trader must know is the leverage, as the trader He enters the market with a small amount of money that is multiplied depending on the strength of the leverage. The leverage is usually offered in a fixed amount that can vary depending on the broker. Each broker gives leverage based on its rules and regulations. The quantities are usually 50:1, 100:1, 200: 1 and 400:1.
1:50 : Fifty-one leverage means that for every $1 in the account, a trade of $50 can be placed, for example; If $500 is deposited, the trading amount can reach $25,000 in the market using 50:1 leverage. It is not necessary for the trade value to reach $25,000, but this is considered the upper limit for trading with this amount of leverage.
1:100 : A leverage of one hundred to one means that for every $1 in the account, a $100 trade can be placed, with a typical minimum deposit of $2,000 for a standard account, where it has the ability to control $200,000.
1:200 : A leverage of two hundred to one means that for every $1 in the account, a trade of $200 can be placed, the usual minimum deposit in this account is about $300, with $300 it is possible to make trades of up to $60,000 .
1:400 : Four hundred to one leverage means that for every $1 in the account, a trade of $400 can be placed, but beware of brokers who offer this type of leverage for a small account.

It is important to know the methods of forex trading when using the leverage and managing the capital wisely and knowing that in order to achieve the highest profits with the least losses, the forex trading is done by choosing a suitable brokerage firm.

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