Forex, which is an abbreviation of the term “Foreign Exchange Market”, meaning “the foreign exchange market”, which is the largest financial market in the world. It is one of the types of direct trade, through trading one currency against another, with the aim of making a profit. The Internet and modern means of communication.
It is considered one of the largest financial markets in the world in terms of liquidity and trading volume, reaching $6.6 trillion per day in April 2019. Forex cannot be compared to any other financial market in terms of liquidity. For example, the New York Stock Exchange, which is the largest stock market in the world, does not exceed Its daily turnover is $70 billion.
This huge liquidity in the currency market is due to the presence of different categories of traders such as major investment banks, central banks, investment funds, investment management companies, brokerage companies, individual traders and traders for non-financial purposes such as hedging purposes, in addition to the development of means of communication and online trading, And the use of financial facilities or financial leverage to trade in forex, and this is what attracts more and more investors to the currency market day after day.
Among the most important advantages of forex in the currency market:
Possibility to trade a small amount:
The forex market allows its traders to open accounts with small amounts, which does not require large amounts of money.
High liquidity in the foreign exchange market:
It is considered the most prevalent in the world and this is what gave it the advantage of high liquidity, and this means: Investors are always there, whether sellers or buyers, and at all prices, as the value of daily trading, according to the latest statistics, reaches 5-6 trillion US dollars.
It cannot be controlled by anyone:
There is no central bank that controls the market price, which means that this market is not controlled by anyone, even the central banks. Despite this, there are many geopolitical and economic influences that affect it.
The possibility of opening a free trial account to try the service, learn and experiment:
Many trading platforms offer the possibility to open a demo account in order to gain experience and learn to make profits before starting with a real account and real money for beginners, as well as for professionals to try their innovative strategies without any real risks before implementing them on their real account.
Trading with leverage:
Trading using leverage that provides the possibility of investing multiple times the size of the capital, which enhances the chances of achieving a higher profit rate. As for the leverage ratio, it varies according to the broker, and with Uniborsa you can trade with a leverage of up to 1:400.
The forex market enables clients to make a profit in both directions (buying – selling) a currency against a currency.
The forex markets operate 24 hours a day, 5 days a week, from Monday morning until Friday evening, excluding global public holidays.
The most famous global currencies are traded in the forex market, and they are the currencies of countries with the strongest economies, which are called “major” countries, as they control one or both of the two sides of the currency pairs:
The US dollar USD – the currency of the United States of America.
EUR – the currency of the European Union countries.
GBP – the currency of Great Britain.
JPY – the currency of Japan.
Australian dollar AUD – currency.
New Zealand dollar NZD – the currency of New Zealand.
Canadian dollar CAD – the currency of Canada.
CHF – the currency of Switzerland.
The major pairs preferred by traders are:
The euro against the US dollar EURUSD
The EURUSD currency pair is one of the most traded pairs in the forex market, and it includes the two strongest economies in the world.
The British pound against the US dollar GBPUSD
One of the strong currencies that was in reserve even before the emergence of the US dollar, investors are very inclined towards this pair.
USDJPY . USDJPY
A pair of two strong economies, especially in the field of cars and electronics, and therefore there is strong competition between countries, which means the speed of volatility of the pair, which is what the investor is looking for.
US Dollar vs. Swiss Franc USDCHF
One of the preferred pairs because of the high reliability of the Swiss banks, due to the neutrality from conflicts, in addition to that, when the markets decline in other countries, the franc becomes a popular currency.
The US dollar against the Canadian dollar USDCAD
Canada is characterized by the export of raw materials such as natural gas and timber to the United States, which greatly affect the economy, so the pair occupies a privileged position among investors.
Australian dollar against the US dollar AUDUSD
One of the favorite pairs as well, especially since Australia occupies distinguished positions in the mining industry and the production of zinc, lead and iron, and thus affects the market prices with rather rapid fluctuations.
New Zealand Dollar to US Dollar NZDUSD
New Zealand occupies advanced positions in the agricultural industry as well as companies engaged in the production of goods that meet the needs of road transport and aviation, so it has a high export movement (to the United States), which affects the value of the pair significantly.
Investors prefer many pairs during their trading in the global currency market, for many reasons, including high liquidity and rapid volatility, and thus high profits, where the investor is able to sell the currency at the best price at any time, in addition to buying the currency at the right price.
In the framework, the EUR/USD is one of the most traded pairs with a daily rate exceeding 30% of the total market turnover, while the USD is the most widely traded currency, due to the size of the US economy.
To enter the world of forex and start investing, you need a trading broker,