The field of Forex or Forex has become one of the most prominent and most famous fields at present that generate income and generate money, and many have begun to deal voraciously with this field, especially after the spread of many platforms that make it easier for people to enter and start the field of Forex. For us, and at the Aqua Web site, we did not have the opportunity to present previous articles on the Forex field (due to lack of experience in this field). However, since we have gained some good experience in this field, it is time to share it with you, as always.
In this article, we will learn about the forex field in general, this article is intended for people who will hear about the forex field for the first time, or were curious about this field and did not have the opportunity to know what it is and how it works and some of the axioms about it, if you are one of these people, this The article is for you.
What is Forex?
Forex, and in English Forex, which is a merging of the two terms Foreign Exchange, and can be criminalized into foreign exchange. Technically, Forex is considered one of the types of trading, so that in the field of trading in general there are many patterns such as stock trading, or crypto trading, But forex specializes in trading foreign currencies. In order to keep the matter as simple as possible, in the field of forex, you select a foreign currency pair such as the euro against the dollar, or the yen against the dollar, so you buy one of the two currencies and achieve a trading deal for a specific period of time, while the profit is made through the two currency teams. Assuming that 1 euro is equal to 1 dollar, then you received some news that says that the price of the dollar may exceed the euro, you choose the currency pair EUR / USD and buy, for example, 10 euros, after a day, for example (less or more according to the deal), 1 euro has become equal to 1.3 Dollars, and your trade ended at the same time that the dollar rose, in this case your total profit will be 13 euros with a net profit of 3 euros. The price may seem low here, but do not forget that the example is only for illustration, and at $ 10, you can imagine if you invested $ 300, for example, or a larger amount.
Is Forex a Profitable Business?
Yes, the forex field is a profitable field, as much as it is bankrupt as well. One of the worst fallacies that are promoted in the field of forex in general is that it is a completely net profit field, that is, access to the forex field requires only good capital, and then you will receive profits from all The deals you make, and this is wrong and promoted thinking. The truth is, the Forex field is very profitable as much as it is very bankrupt. If someone tells you that trading $ 100 in the forex field will return you with a profit of $ 200, it may also return to you losing the full $ 100 as well. Therefore Forex requires a lot of training and practice, reading articles, watching videos, and practicing in acquisition of profitable deals. And being prepared to win is as much as willing to lose, and this is the most important thing in the Forex field. In order not to be completely pessimistic, the profit side in the Forex field is also beautiful, as you can convert a small capital into wealth, if you gain the necessary experience and patience.
How does the forex industry work?
Like other areas based on the economy in general, forex depends on the principles of supply and demand, the more demand for a particular currency, the more it becomes in demand and the higher its price. In the forex market, the same principle applies here, as all economic movements around the world take place with money and in different currencies, those currencies imposed by the country of origin, and the importer must pay with the currency of that commodity. For example, if the European Union wants to import something from the United States of America, then the European Union must pay in dollars, and if the United States of America wants to import something from the European Union, it pays in euros. Therefore, the exporting country largely for all necessities and for all countries its currency is profitable and in the foreground, for example the US dollar, the euro, the Japanese yen or the Chinese RMB. This economic formation determines the price of the currency and the demand for it on the global stock exchanges, and investors make transfers from one currency to another with the aim of profit with the difference of the two currencies, and no matter how large the amount is, the higher the profits. The forex market is not different from this at all, except that the exchange here is a digital platform.
How can I get started in the Forex field?
There are many things that you must consider in the field of forex, and that every beginner must first know and understand before starting the field of forex, most notably:
To find the right broker, real exchanges cannot trade in them, you need a reliable and intermediary forex platform. Despite its large number, most of the forex websites do not provide accurate information and always try to manipulate the results in order to spoil the deals for you and profit in their favor, so always try to find and use reliable platforms in forex trading.
To determine the currency pair that you want to trade in, many go directly to the dollar and euro pairs, but one of the forex basics that anyone should know is that strong currencies such as the dollar or the euro are volatile and move quickly and it is preferable to leave them to professionals, you need a currency that does not fluctuate quickly So that the margin of loss is small and the profit rate in the transaction is high.
Observing currency movements in reality, the retirement is not necessary, many of those who do not want you to start in Forex tell you that you must have extensive knowledge of the economy and the real currency market, so that you know, for example, that the dollar will rise when America makes an arms deal with a country, and this is wrong, There are many indicators that help you to determine the right currency pair for trades, and there are even Telegram channels that help you choose the best deals for trading, called Forex Signals in the field of Forex.
Speaking of Forex Signals, this will refer us to another point, which is knowing the keywords for this field. While you are on one of the Forex platforms, you will find many terms such as Ask Price, Bid, Forex Signal, Pip, Resistance, Soft Currency, Hard Currency and others. And you may be confused by these resounding phrases, so we recommend that you take some time and understand them. And since we will start presenting some articles in the Forex field, we will definitely provide articles talking about these terms.
What are the advantages of Forex trading?
Forex is a double-edged sword, and it is characterized by its positive side and its negative side, and it is our duty to show you both sides in this article. Forex has many positive aspects that you can use to your advantage, which are:
Quick profit: unlike other fields, say, for example, the content industry on YouTube, in the Forex field, directly after this article, you can turn $ 50 into $ 100 in just an hour, while the rest of the fields may require months and years of work in order to reach Same result.
Available to everyone now: In the past, forex trading was restricted to a group of people or entities such as countries, unknown companies, and even individual companies, but today it is available to everyone, as it became possible for me and you to start trading forex today.
Little profit and a lot of profit: One of the most prominent features of forex is that it allows you to either win a little or win a lot, in the past, you had to spend hundreds of dollars in the field of forex in order to profit, and it may be a lot of profit or a big loss. Now, you can rely on the short profit through short trading with less loss (that is, in the case of loss, you lose a little, and in the case of profit you win a little as well).
With great financial liquidity: The forex market is one of the largest trading markets in the world, which makes it permanently moving and with a liquid financial liquidity in the continents, this provides you with greater opportunities to profit by choosing any market suitable for you, whether a large market or a medium market and even weak markets.
Not tampered with: In stock trading, there are manipulators in this market, even in the crypto market and digital currencies, for example, a group of people store large Bitcoin stakes and refuse to invest or buy them except when large trades take place in Bitcoin to raise its price. Simultaneously. In the Forex market, because it is a market that changes by the second and is not controlled by certain people, it remains reliable.
Automation feature: We mentioned earlier that you do not need much experience in forex in order to trade, as today there are bots that can trade for you after identifying some of the basics, but there are platforms now that allow you to track and monitor a person or company And trading like it.
What are the downsides of Forex trading?
No matter how much forex concepts are marketed to you in the finest terms, the best results and the most profitable, forex trading remains with many negatives that you should be aware of before starting in this field, most notably:
It is not always profitable: you will not make a profit in every deal you trade in forex, you must lose, the question here is whether the loss will be in a big deal or a small deal, the decision is up to you.
Rapid fluctuations: After going a little deeper in Forex trading, you will get acquainted with terms such as Soft Currency and Spiking, for example, for example, Soft Currency are currencies that fluctuate greatly and that trade in them with caution, and in this type of currency the so-called volatility or volatility occurs, It means rapid and sudden change badly. Therefore, it is always recommended to go to currencies with very slow fluctuations, even if their profit is weak.
Either the weak profit or the big loss: in a very, very brief way, you have two paths here that you have to take one of them: Either you invest in strong currencies with a large profit and a large loss ratio as well, or you invest in a slow currency pair with a low profit and a small loss. You have to accept that your profits will be weak if you do not want to lose a lot, and that the percentage of loss will be large if you want to win a lot.
Beware of fraudulent sites: always resort to the most famous Forex platforms, and try to stay away from emerging platforms even if their offers are attractive, as their problems are many and sometimes they manipulate trading indicators, which makes you deliberately lose their personal advantage.
The field of Forex is really a vast field, but we will try through a series of different articles to gradually introduce this field to our users and try to help them explore it more.