Learn The Basics Of Forex Trading in 2017 The Forex market is the largest financial market in the world for its large profit opportunities for Binary Option Club traders and huge trading volumes, which exceed in recent years 5 trillion per day, which makes it a destination for major commercial and central banks and international financial institutions in addition to major investors. However, with the development of the Internet and the modern means of communication, it is very easy for investors and ordinary traders to access the Forex market and benefit from the great profit opportunities it offers. In this Binary Option Club article we will discuss the most important concepts and basics that you need to know to understand how Forex markets work and how to make a profit through currency trading.
What is the Forex market?
Forex is simply the currency market, and Forex is derived from the two foreign words, foreign exchange or foreign exchange. The Forex market is the place where foreign exchange takes place. Companies or individuals when trading with parties outside the local boundaries They need to deal in a currency other than the local currency. For example, if you live in a euro-denominated European country and want to buy a car from a Binary Option Club Review company in England, you need to replace your currency, which is the euro in sterling, the official currency in England to buy the car.
The need to replace currencies is the reason for creating the Forex market, which is the largest financial market in terms of liquidity and volumes. This market is characterized by the absence of a central place for trading, but is traded in the system of “out of the cabin” that is to do sales and purchase is not in a central market as the stock market or the commodity market, but directly between traders around the world using the Internet and modern technologies. Forex markets operate 24 hours a day and 5 days a week from Sunday night to Friday night. Each day consists of 3 shares, the European share, the US share and the Asian share, and the major currencies are traded during these quotas.
Forex Trading Basics
Couples: Forex is traded in the Forex market by pairs, reversing the stock market where you can buy and sell one share. In the Forex market when you buy a currency you sell another currency. When you look for currency rates you will find them written as follows:
The value of a currency is determined by the value of another parallel currency. For example, if you want to know the exchange rate of the euro against the US dollar, you will find the following statement: EUR / USD = 1.1035 The currency on the left is called the base currency, the euro (EUR) in this case, and the currency on the right is called the corresponding currency is the United States dollar (USD). This means that every 1 euro is worth $ 1.1035, or in other words you can get $ 1.1035 for every euro you own.
Or “PIP” as it is also called, is the smallest change in the price of the pair. In the case of most major currencies such as the US dollar, the euro, the pound and the Swiss franc, the point is 0.0001, with the exception of the Japanese yen where point 0.01 because it is priced only two digits after the interval. For example, if the EURUSD gains from 1.1020 to 1.1035 we will say that the pair has gained 15 pips. Most currencies are traded in a range of 100 and 150 points on a daily basis.
Forex is traded in the Forex market by lot. In short, Lot is the size of the Binary Option Club Scam contract of the currency you sell or buy. The smallest Lott you can trade is the Micro and represents 1000 units of currency, if your trading account is denominated in US dollars you can buy the equivalent of $ 1000 from the base currency. Then the miniature lotus, which is equivalent to 10,000 units and the standard lotus, which is equivalent to 100,000 units. For example, if you buy a lot of $ 100,000 from the EURUSD at 1.1035 and move the upside move to 1.1045 then your profit will be $ 100.
You may wonder how a small investor can trade large sums of money to achieve a reasonable profit rate, and here comes the role of leverage. A leverage is the money that a financial intermediary gives you to increase the volume of your forex trading transactions even if the amount you have deposited is small. The strength of leverage varies according to the mediator and often ranges between 10: 1 and 400: 1. For example, if you open an account with a broker that gives you a 100: 1 leverage and you deposit $ 2000 you can trade $ 200,000.
How to Trade Forex
In order to be able to trade currencies in the forex market you have to open a trading account with a brokerage company. Because there are many companies in the arena, you need to find a reliable broker that provides services that suit your trading method and the risk you can afford. To find the right broker, follow these tips:
– Looking for a Binary Option Club brokerage firm that has been in the market for several years and has considerable experience in the field of financial transactions with a good reputation. – Ensure that the broker is licensed by a recognized financial institution such as FCA in England, ASIC in Australia and AMF in France. – Read the comments and reviews about the broker in the relevant sites, and contact the technical support center of the mediator to take the necessary information. – Review the services and products provided by the mediator through its location, such as various commissions and draw and deposit fees in addition to the type of platform and technical tools it provides. After you have opened a trading account, you need to analyze the market for trading, and most Forex traders use one or both of the following methods:
Which is the analysis of charts and historical data of the price in order to predict its future movement, which depends mainly on the levels of support and resistance, technical models and indicators and patterns of Japanese candles.
– Basic analysis:
It depends on the analysis of the economic data of the countries that affect the currency rate such as unemployment rates, expected growth rates, interest rates and geopolitical events. For example, if you think the US economy will see a decline, which will be negative for the US dollar, you will sell the dollar against another stronger currency such as the Swiss franc or the Japanese yen.
Forex Trading – Binary Option Club The above chart represents the daily chart of the GBP / USD, which clearly shows the impact of geopolitical events on Forex trading. After Britain voted for exit from the European Union, sterling fell 10 percent on the day after the referendum to its lowest level since 1985, prompting investors in global markets to scramble for safer currencies such as the yen and the Swiss franc.
The Forex market offers huge advantages over the stock or commodity markets. Low commissions, high leverage and high liquidity are the most important features of the Forex market. However, most Forex traders lose their money. Every novice trader must spend enough time to study, learn how to trade Forex, how markets operate and understand trading methods and strategies. The Forex market offers great profit-taking opportunities but may lose you money if you are not equipped with the necessary knowledge.