What is the currency trading market?

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What is the currency trading market? What are the most important features of working with it?  the most important features of working with it

The word "Forex" means in short the foreign exchange market or the global exchange of foreign money, which is appropriate for the word "ForeignEXchange market" in the English language

And those currencies are bought and sold in US dollars or other currencies among them, which is known as currency pairs, in exchange for the US dollar or any currency against another currency. And currency speculation is the most profitable trade in stock exchanges, because of the rapid fluctuations in currencies from an upward trend to a downward trend or vice versa. In addition to the currency market, there are other types of stock exchanges: gold and silver exchanges, petroleum exchange, stocks and bonds, agricultural crops and energy. As for the currency exchanges, they are characterized by various indicators, technical analysis, news analysis, and the speed of obtaining profits. The daily volume of currency trading in the forex market reaches 3 trillion dollars. For comparison, the volume of activities of the New York Stock Exchange does not exceed $300 billion per day

The meaning of currency trading The forex market (FOREX) for interbank financial transactions was established in 1971 when transactions in global trade shifted from using fixed values ​​of currencies to float values. This is the result of a group of financial transactions carried out by financial market agents to transfer a certain amount of money in the currency of one country to the currency of another country at a pre-agreed value for a specific date. The exch ange rate of a particular currency in relation to another currency is simply determined based on the supply and demand for each.

The forex market brings together four regional markets: Australian, Asian, European and American. And trading operations continue in it all working days, and the market operates around the clock, ie 24 hours a day. Relative calm is observed from 20:00 to 01:00 GMT, due to the closing of the New York Stock Exchange at eight in the evening and the start of the Tokyo Stock Exchange at one in the morning.

The forex market is not related to the opening hours of the stock exchanges because trading takes place between banks located in different parts of the world. And currency rates make several large changes, which helps to carry out some commercial operations within one day.

It is known that declines have a significant impact on the financial markets, which may lead to the collapse of stocks or bonds, and this is the opposite of what happens in the forex market. The decline of the US dollar (for example) means the rise in the price of another currency and there is no collapse like stock or bond markets. The forex market has become available to everyone, especially after the spread of the Internet and modern means of communication, after currency trading was limited only to owners of large capitals, banks and large financial institutions.

The most important advantages of working in currency trading (forex) through the Internet

Huge liquidity

The forex market is characterized by its huge liquidity, there are always sellers and buyers at all prices, which means the possibility of opening and closing deals at the price you want, unlike the case in stocks where you can remain suspended in a deal due to the lack of liquidity in the stock you have purchased, or where it may not be You find bids at the price you want to buy the stock at.

The ability to trade at a time convenient for you-

The forex market operates 24 hours a day, and this gives the opportunity for traders all over the world to trade at their convenience through the Internet, regardless of whether they are free or not.

Profit in up and down directions:

In the forex market, you can take advantage of both directions. If you expect to go up, you buy and if you expect to go down, you sell, meaning that you can take advantage of all market conditions.

Margin Trading:

In the currency market, you can trade multiple times your capital with a margin system, which is not available in any other market, and enables you to make large profits from small amounts.

Trading without additional commissions:

There are no additional commissions on transactions in the currency market, as the broker does not take on the execution of transactions except the price difference between the purchase price and the selling price.

No one can control prices:

The huge liquidity of the currency market makes it impossible for any class to move the market and manipulate prices, as happens in poorly liquid markets, as even major banks and huge investment portfolios cannot control prices.

Possibility to trade small amounts:

The minimum amount to open an account in the currency market in most companies does not exceed $100, which allows small investors to trade in the market like other adults, with more money than they need.