What is forex?
It is an abbreviation for "foreign exchange market" simply; it is a market like any other market but here you can buy and sell money pairs, this is the goods!
So, if you have commercial passion this is surely your field.
Important terms
First of all you have to be patient and gather the necessary information before you walk any step in the road, so i will reveal some terms used in the forex & stocks market which will be heard thousands of times through the learning period:
(1) Broker
It is a company specialized in online business and has many directors working through it, it simplifies your deal with the market, so you do not have to be in New York to open a trade on EUR/USD pair for example, rather than you are able to open this trade through their trading software at your home on your computer/laptop by 1 click only in less than 10 seconds by this easiness!
(2) Leverage
This is the system used in forex & it implies opening a trade with a quantity of money multiplied 100 to 500 times than the original money in your portfolio,
not clear ha? let's simplify it: say for ex you have bought 10$ of USD/JPY pair @ market price 82.30 aiming to gain 10 pips of profit so you will close this trade @ market price 82.40
when you select to open this trade you will enter the market with 1000$ not just 10$, although you didn't spend cent more than the previous 10$, this what makes forex very profitable than any other type of trading.
(3) Spread
This is the benefit of the broker from you, for ex when you aim to get 10 pips of profit, & each pip= 1$, the broker takes 2 pips from you (the spread is different among different brokers & different money pairs) this means they took 2$ from you so you earned 8$ only.
They resemble money exchange places, this is their benefit only.
(4) Trend
when the market is taking one direction for a specific period of time, this is called "trend"
so you now realize there is up-trend, down-trend, and flat-trend, also there is long-term trend, intermediate-trend and short-term trend according to direction and duration successively.
(5) Bulls
when the market is moving in up trend it is called "bull" market metonymy of their nature and their violent horns.
(6) Bears
when the market is moving in down trend it is called "bear" market metonymy of their nature and heavy weight.
N.B:- Now you got a hence about forex and how it works, when i remeber more terms i will update this post in the blog, ready to hear any questions from all.
Cheers!
Important terms
First of all you have to be patient and gather the necessary information before you walk any step in the road, so i will reveal some terms used in the forex & stocks market which will be heard thousands of times through the learning period:
(1) Broker
It is a company specialized in online business and has many directors working through it, it simplifies your deal with the market, so you do not have to be in New York to open a trade on EUR/USD pair for example, rather than you are able to open this trade through their trading software at your home on your computer/laptop by 1 click only in less than 10 seconds by this easiness!
(2) Leverage
This is the system used in forex & it implies opening a trade with a quantity of money multiplied 100 to 500 times than the original money in your portfolio,
not clear ha? let's simplify it: say for ex you have bought 10$ of USD/JPY pair @ market price 82.30 aiming to gain 10 pips of profit so you will close this trade @ market price 82.40
when you select to open this trade you will enter the market with 1000$ not just 10$, although you didn't spend cent more than the previous 10$, this what makes forex very profitable than any other type of trading.
(3) Spread
This is the benefit of the broker from you, for ex when you aim to get 10 pips of profit, & each pip= 1$, the broker takes 2 pips from you (the spread is different among different brokers & different money pairs) this means they took 2$ from you so you earned 8$ only.
They resemble money exchange places, this is their benefit only.
(4) Trend
when the market is taking one direction for a specific period of time, this is called "trend"
so you now realize there is up-trend, down-trend, and flat-trend, also there is long-term trend, intermediate-trend and short-term trend according to direction and duration successively.
(5) Bulls
when the market is moving in up trend it is called "bull" market metonymy of their nature and their violent horns.
(6) Bears
when the market is moving in down trend it is called "bear" market metonymy of their nature and heavy weight.
N.B:- Now you got a hence about forex and how it works, when i remeber more terms i will update this post in the blog, ready to hear any questions from all.
Cheers!
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