Forex Trading Basics – How Forex Trading Works

The foreign exchange market is one of the largest markets

In the world if not the largest. 9 billion, more than 3 times greater than

The stock / stock market is five times larger than futures contracts, give forex فور

Traders have virtually unlimited liquidity and flexibility. It was appreciated

Nearly $2 trillion of currency exchanges are traded every day.

World currencies on a floating exchange

Price and is always traded in pairs, for example EUR/USD, USD/JPY or USD/INR.

A forex currency pair is a single unit, an instrument that is bought or sold

in the forex market. Each currency pair is expressed in counter units

The currency required to obtain one unit of the base currency

The first currency is called the base currency and

The second currency listed is called the quote currency or the counter currency. Al-Qaeda

Currency is the basis for a buy or sell transaction. For example if you put

A buy order in EUR/USD, you are actually buying dollars in EUR and

Selling US dollars.

Example

EUR / USD

Interest rates are set to fall in the United States and

So you think the euro will rise because of the presence of the European Union الاتحاد

higher interest rates. So in order to take advantage of this and create a file

You bet against the US dollar to buy the EURO / USD. This purchase order is active

Buying dollars with Euros and selling US dollars.

Or if you think Euro dollars will do

Decline due to economic problems such as high inflation and rising unemployment

And you want to make a deal where the dollar in the euro goes down against the US dollar

You will need to sell the EURO/USD currency pair. This sell order is also referred to as

GOING SHORT Effectively selling Euros for dollars and buying US Dollars.

So in short:

Buy EURO / USD (Buy EURO) – Buy EURO Sell USD

Assuming the euro will rise against the US dollar الدولار

Sell ​​EURO/USD (Sell Euro) – Sell EURO Buy USD

Assuming the dollar will rise against the euro.