Invest in Forex with CFD BEST BROKER
Forex is one of the largest and most liquid investment markets in the world. Forex market contributes to global investment and trade through exchanging currency with other one. Forex is widespread all over the world and operates 24 hours a day except for the weekend. Exchange rates in this market are enormous at over 4 trillion Dollars in a day, Which put this market in a position that is difficult to compare with any other market.
Know about the advantages of investing in Forex: Forex market is intended to trade foreign currencies, which is one of the largest trading markets around the world, as the daily trading volume of the Forex market times what is traded in the global largest stock markets.
The main reason for the large size of the Forex market is that the main players in this huge area are the central banks (the controllers of monetary policy of countries) along with large investment funds as well as hedge funds. Finally, the smallest participants in this market are retailers (this last part includes Forex companies)
How currency trading has developed?
In 1944, the Bretton Woods agreement was reached to ensure that the value of the currencies stabilized by stabilizing the price of gold at 35 dollars per ounce. During this time, most of the new countries had currencies based on the gold cover, and were called the period of currency stability. The disadvantages of this system have emerged because of the standard gold tends to create thriving economies threatened with bankruptcy. When the economy thrives and grows, the country needs to increase its imports aggressively to expand. This development is depleting the state's reserve of gold, which is mainly required to support its currencies, leading to the decline of the state's financial resources, rising interest rates and the slowdown of all economic activities within the country.
After the Second World War, countries needed to undertake massive construction work and thus needed to exchange large sums of money to increase the capital required for the completion of construction work. In 1971, the Bretton Woods treaty was abolished because the US dollar was no longer replaced by gold and now the forces of supply and demand are controlling currency rates in the major industrialized countries because the currency is free in exchange. The liberalization of currencies has encouraged large-scale currency trading, leading to major changes and currency fluctuations. In the end, with the advent of globalization and the great development of communication technology, the computer and the Internet, trading in currencies became the most easy and widespread among all investors, individuals and institutions. so, the value of daily trading in the currency market reached today to 4 trillion dollars.
Advantages of Forex trading
The Forex market includes a number of solutions that differentiate it from other international markets, and highlights of this is:
- Large volume of liquidity makes it difficult to manipulate against small traders.
- The possibility of trading in both directions selling or buying (reverse stock market).
- The availability of leverage that makes it easy for traders to trade in a relatively small amount.
- A good risk market if the required conditions are met in the management of capital.
How to trade in Forex market?
Through the Internet has become easy to enter into the forex trading world, by selecting a good company subject to recognized regulators, and then open the account with this company and after financing your account you can trade immediately in the market.
But there are some conditions before financing the account, specifically at the brokerage company:
First, choose a brokerage company that keeps your money.
Second, Choose the company that has an Arab support team to make it easier for you to deal.
Third, You should choose Company which has availability of trading conditions to suit your trading strategy, means of deposit and withdrawal appropriate.
Terms of Trading in Forex market
Some are attracted to trading in the currency market as an easy market that can achieve easy profits through daily speculation, ignoring that the possibility of rapid and large gain offset by the risk of the loss of severe, so trading in the currency market has some conditions that the trader must adhere to:
- Setting a trading plan to determine the overall risk ratio of the account as well as the ratio of the risk of each transaction.
- Follow the general trend in the market and do not trade reverse direction and built trading strategy on this basis.
- Good training by opening a demo account and tracking it to monitor the performance of your deals.
- Always commit to setting a stop loss point.
- Dont follow your personal intuition Market is a specific scientific rules do not enter your personal sense of it.
- When you lose a certain deal you do not think of retaliating against the market, it will offer you a bigger loss.