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How to start forex trading and what are forex terms

How to start forex trading.Stock trading or forex trading, they are similar to each other. We will learn how to start your journey in forex trading

How to start forex trading and what are forex terms

How to start forex trading and what are forex terms

How to start forex trading.

  • Learn more about forex.
  • Set up a brokerage account.
  • Develop a trading strategy.
  • Always be aware of your numbers.
  • Develop emotional balance.

  • Learn more about forex.

Forex trading is not complicated, although it requires specialized knowledge, for example, the ratio of financial leverage for trading forex is much higher than the ratio of financial leverage in trading stocks
There are many online courses available for beginners that teach how to trade forex

  • Set up a brokerage account.

In order to start trading forex, you must create a trading account with a brokerage firm, although forex brokers do not charge commissions for that.

They earn money through points known as the price difference between the selling price and the purchase price

For beginners, the Micro Forex account is the withdrawal of an account for them to trade with comfort and determine their own trading style.

Using a small trading account with small capital requirements is suitable for beginners
Brokers can limit clients’ trades to a small amount of up to 1,000 parts of the currency, knowing that the standard ratio for the account is 100,000 parts of the currency.

  • Develop a trading strategy.

It is not possible to predict the movement of the market and determine its direction. Developing a strategy that is especially suitable for you will help you in developing a road map for you and general guidelines for you.

The trading strategy depends on your financial situation, the amount of risk you can take and the amount of money you put into trading

Remember that forex trading has high leverage and is in fact very dangerous for your capital. I misused it and it also offers rewards to those who are fully willing to take risks.

  • Always be aware of your numbers.

Once you have started eating, you should always check your positions and deals at the end of the day. Most trading programs already provide daily accounting for all your friends and trades. Always make 

sure that there are no pending positions that need to be filled, and always make sure that you have enough money in your account to make your future trades.

  • Develop emotional balance.

Forex trading is always fraught with emotional fluctuations and there are a lot of questions that come to your mind such as whether I should have stayed a lot of time in this deal to make more profits How did I miss this opportunity How did I miss this news How did I miss this deal

The large number of these questions will surely cause you confusion, and this is very dangerous in trading. Do not get carried away by your passion in trading, as you always learn to exit your deals at the right time.

Forex terms.

Before starting the forex journey, you should learn its language. Here are some of the most commonly used terms in forex

  • forex account.

In order to start the currency trading process, you must have a forex account, which depends on the size of the lot, and there are three types of accounts

1. Micro forex account.
It is an account that allows trading 1000 units of currency in one lot

2. Forex mini accounts.
They are accounts that allow trading 10,000 units of currency in one lot

3. Standard forex accounts.
They are accounts that allow trading 100,000 units of currency in one lot

  • Important note.

Margin funds for leverage are included in the size of your trading contract. The broker can provide you with a pre-determined ratio capital. For example, he may put $100 for every dollar you use in trading. If you use $10, you can trade currencies with a value of $1,000.

  • ask.

The bid or ask is the lowest price of the currency you want to buy the currency has the ask price is always greater than the bid price

    • bid.

    It is the price that the currency reaches and you intend to sell the currency at. Bids are often more than the asking prices. In cases of great demand, the bid prices are more than the asking prices.

    • A bear market.

    A bear market refers to a downward trend and occurs as a result of pressure from economic fundamentals, natural disasters, or financial crises.

    • bull market.

    A bull market indicates an upward trend and occurs as a result of the optimistic news of the economy

    • Contract for Difference.

    It is speculating on the movement of currency prices without owning the underlying asset. You are betting on the direction of the market, whether it is rising or falling, and do not forget that the use of financial leverage in trading involves risks and huge losses that cost you all your capital.

    • Financial leverage.

    It is to use borrowed capital to multiply returns. The forex markets are characterized by high financial leverage and traders use it to enhance their profits and also involve very high risks.

    • Lot size.

    There are four sizes of lots, which are standard, small, micro and nano. The standard lot size is 100,000 parts of the currency, the small lot size is 10,000 parts of the currency, and the limit of the micro lot is 

    1000 parts of the currency. The brokers also provide the traders with the size of the nano lot with a 
    value of 100 units of currency there. A common factor between choosing the size of the lot and the gain or loss. The larger the lot size, the greater the profits and also the large losses.

    • margin.

    It is money that is placed on the side in the traders’ accounts for currencies and helps to ensure the broker that the trader will always be able to fulfill the obligations even if the market is reflected on him 

    and the margin always depends on the trader and his balance during a period of time and the margin is always along with the financial leverage

    • the point.

    A pip is a percentage or an interest rate point. One pip equals 0.00001, 100 points equals one cent, and 10,000 points equals one dollar. Depending on the standard lot, the value of the point changes because the currency markets use large leverage, so small price movements can have a big impact.

    • The spread.

    It is the difference between the bid and ask price or the buying and selling price of a currency. The spread is affected by the volume of demand for the currency and the volume of trade on it

    • Hunting and hunting.

    It is one of the advanced ways in which you can sell or buy a currency at a predetermined point to enhance profits


    Mostafa Abd allah