Profit from trading

1. Forex education for beginners: how
does forex work
?
https://uii.io/tradingUK
Are you interested in the world of financial markets? Do you want to get forex
education and trading in the forex market from scratch
?
There are more and more people interested in this wonderful world, but it is not
always easy to find information that really helps you understand the forex market and
how to work in it
.
That is why in this article we teach you everything you need to know about forex
education and trading, if you are a beginner. We will explain what the forex market is,
how to learn forex, and where you can get the right forex education to start investing
in the forex market
.
Consider this article "Forex Education Guide for Beginners
"
How does forex work
?
To answer this question? We'll break down two basic terms here
:
●
The term forex trading is the activity through which one currency is exchanged
for another. You can trade with a myriad of instruments: forex, commodities,
indices, stocks, cryptocurrencies, etc
.
●
The term forex refers to the market in which some currencies are exchanged
for others, as well as other types of financial instruments
.
So how does forex work? Forex trading is an activity, or even a profession, by which
currency pairs are bought and sold to speculate that the price of these pairs will rise
or fall
.

2. This activity is open to anyone with a computer and access to the Internet. Forex
trading is a type of day trading on an international scale. Countries, companies, and
even individuals like you work with currencies every day
.
This trade takes place through computer networks between merchants around the
world. This is the main reason why the forex or currency market is the largest and
most liquid market in the world, the most easily accessible, and as a result also
considered the most risky
.
Brief Introduction to Forex
Forex (also known as foreign exchange market) is where currency pairs such as
EUR/USD or GBP/USD are exchanged and their price movements are invested in
the market to make money. The forex market is an over-the-counter (OTC) market;
Investors and traders buy and sell currency pairs through it
.
Currencies, in contrast to most other tradable financial assets, are economic
instruments as much as they are economic indicators . In other words, if countries
were corporations, the currencies would be their stocks
.
The forex market is the most liquid (as well as the most accessible). Therefore, it is
the most difficult market to manipulate
.
It is the largest financial trading market in the world
Forex is the largest financial market in the world, with more than 5.09 trillion US
dollars traded every day. In other words, in one day, more money will be traded in the
forex markets than the value of Japan's GDP! Of these transactions, $254 billion is
traded through CFDs and other derivative financial instruments
.
Being the largest and most active financial trading market in the world, it is also the
most liquid market in the world, which means that it is easy to participate and trade
currencies for new beginners and enter and exit trades. And for the most liquid pairs,
they can trade currencies at a very low cost (even as little as 1 pip!). This also

3. means that the forex market is very volatile, which creates many opportunities for
tradershttps://uii.io/tradingFR
to profit from positive and negative moves in currency trading
.
Forex Education for Beginners: Terminology
Basics
Knowing the vocabulary used by investors and forex brokers will not make you a
successful trader , but it is necessary to know in order to become a trader in the
beginning
.
Here are some of the most important forex fundamentals
:
●
currency pairs
●
Spreads and points
●
margin
●
Leverage
●
Contract size/lot
●
Trading platforms
●
Contracts for Difference
●
Swap
Any investor who wants to start trading in the forex market needs to understand how
this market works and also needs to know the basic terms used in that particular
market. Getting started with a demo trading account is a good way to start learning
forex and understanding how to trade the financial markets
.
To solve the question of how Forex works, we need to clarify some key concepts
:
Currency Pairs

4. It is a key concept within the basics of forex business. To keep it simple and within
the context of the forex market, imagine that currency pairs are one financial
instrument
.
For example, EUR/USD
.
●
The first currency in this pair, the Euro, is known as the base currency
.
●
The second currency, in this case the US dollar, is called the quote currency
.
A forex quote is the comparison of the values ​
​
of the base currency and the quote
currency
.
When looking at the EUR/USD or any other quote on your trading platform, you will
see two numbers
:
●
Selling Price (Bid
)
●
Purchase Price (Ask
)
Which is displayed this way: EUR/USD: 1.10973 / 1.0978
.
This quote indicates the following
:

5. ●
You can buy 1 EUR at 1.0978 USD, which is the purchase price
.
●
You can sell 1 Euro for 110,973 USD at the selling price
.
Imagine that you want to buy the euro and sell the US dollar. By pressing the buy
button, your broker borrows part of the funds from your trading account as security
for the transaction
.
After a while of closing the order, assuming that the market moved in the direction
you expected, ie the Euro has increased in value relative to the Dollar or the latter
has decreased compared to the Euro. At this point, your broker sells you euros that
have appreciated against dollars that are now less valuable
.
There are two things to consider
:
●
First, traders sell coins they don't already own
●
Second, a buying and selling process takes place in every transaction; For
this reason it is known as "currency exchange
."
These are the basics for working in forex with respect to the mechanical part
.
point (pip
)
It is the minimum unit of change in price and at the same time one of the most
popular terms within the basics of forex trading. When the EUR/USD sell price goes
from 1.1234 to 1.1235, it means that it moved by 1 pip
.
Lot/Lot
It is the size of the deal within the market and is measured in lots (lots) . When the
trading volume corresponds to 1 lot (100,000 units of the base currency), 1 pip
equals 10 units of the quoted currency. For example, when trading 1 lot of the
EUR/US pair, 1 pip equals 10 USD
.

6. https://uii.io/tradingFR
Spread
The spread is the difference between the buying price and the selling price. As you
read earlier, the quote is the comparison between these two prices. The buy price
will always be higher than the sell price, making financial trading as much about
timing as it is about price
.
The spread is the reason why there is a small negative balance when opening a
position. One of the basic concepts of forex is that prices have to move in the
trader's favor to make a profit
.
Margin
Simply put, it is the amount of money a trader invests in a trade. A retail forex trader
is not likely to have the margin to trade the market directly, as the minimum is
100,000 currency units. For this reason, leverage is used on the deposit margin
.
In an example, if a trader wants to open a position of 1,000 euros and the exchange
rate of EUR/USD is 1.2500, how much money does the trader trade? The answer is
1250 dollars

7. If a trader has $2,000 in his account, $1,250 will be taken from his account as
operating margin for the trade, and this is known as the margin. This margin is
maintained until the closing of the position
.
Note: The free margin is the result of subtracting i.e. 2000-1250 = 750
Leverage
It is another basic term for understanding the basic concepts of forex. Leverage is a
multiplier of money. For example, a leverage of 1:100 can convert a 100 EUR
account into an account that controls 10,000 EUR for a currency pair, making even
the smallest price fluctuations profitable. However, keep in mind that leverage is an
opportunity that also has its risks, since the amount of margin available is directly
proportional to changes in currency rates. Therefore, if the market moves against
you, it will affect in real time the available margin in your account, and if you do not
have enough funds, the broker will liquidate your trades, because they will not be
able to keep them open
.
Based on our previous example, if the trader's leverage is 1:100. This means that the
trader contributes 100 times less, so the margin for the same transaction will be
$12.5
Free Margin
It is the difference between the account balance and the total margins for open Stop
Out
Finally, we have the Stop Stop which is the minimum margin level from which the
broker starts closing your open positions. In the case of Admiral Markets this level is
50% for retail clients and 30% for professional clients
.
trading account

8. The account offered by the broker to the forex trader for trading
Trading platform
Programs that the broker offers to the trader so that he can access the market and
trade
Purchase order
When a buy order is placed on the EUR/USD pair, a portion of the funds in the
trader's account are used to buy the pair's base currency - in this case the Euro -
and sell the pair's quoted currency - the US dollar
.
The broker carries out this transaction which is called submitting a purchase order.
The order is either placed with the broker (market builder) or connected directly to
the interbank forex market (ECN execution), which is where the main market
participants are. When the trader is satisfied with the profit, he closes the order and
the broker executes the opposite transaction, i.e. he will sell the Euro and buy the
Dollar
‫شراء‬ ‫امر‬ - ‫فوركس‬ ‫تعليم‬
Source: EURUSD, 1 hour chart - MT5 Admiral Markets. Please note that past
performance is not a reliable indicator of future results
.

9. sell order
The reverse process, also called short trading or short selling , the trader will first
open a sell order. The reason is that once the market is analyzed, the trader
considers that the price of the instrument has fallen, so he first places a sell order,
and as soon as he has accumulated the profit he wants, he closes the position with a
buy order
.
‫بيع‬ ‫امر‬ ‫الفوركس‬ ‫تعليم‬
Source: EURUSD, H1 chart, MT5 Admiral Markets. Please note that past
performance is not a reliable indicator of future results
.
All these terms related to currency trading can be seen in more detail in the following
YouTube tutorial
:
‫الفوركس‬ ‫تداول‬
Forex Education: The Most Important Currency Pairs in Forex
This guide on forex education would be incomplete without a review of the most
popular assets available to a trader
.

10. We will learn about major and minor currency pairs and all the other currency pairs
present in forex trading which are generally called “exotic currency pairs” and
represent less than 10% of all foreign exchange transactions
.
1
.
US Dollar (USD
)
The US dollar, with its myriad nicknames (including the green currency), is the main
currency of one of the world's largest economies. Although it is widely influenced by
central bank policy announcements and interest rate policy, it is backed by economic
fundamentals such as GDP
.
2
.
Euro (EUR
)
Also known as the "enemy of the dollar," this currency tends to be slower when
compared to the British pound or the Australian dollar, with an average movement of
30-40 pips
.
3
.
British Pound Sterling (GBP
)
This currency is more volatile than the Euro, as it tends to trade more broadly during
the day, daily fluctuations can reach between 100 - 150 pips. Its most volatile times
are between the London and US sessions, and the slowest times are during the
Asian hours
.
4
.
Japanese Yen (JY
)

11. This currency has low interest rates and can sometimes be very erratic. Its daily
trading range is between 30 and 40 pips, and may reach 150 pips
.
5
Australian Dollar (AUD
)
Thanks to government policy, the Australian dollar is characterized by high fixed
interest rates, which makes it the preferred choice for trading. This coin provides
reliability and a wide range of benefits
.
Other important currencies include the Canadian dollar (CAD), the Swiss franc
(CHF), and the New Zealand dollar (NZD
.)
The aforementioned currencies have the strongest economies in the world, and as a
result of this, forex trading options are incredibly popular because they have a high
level of liquidity
.
While trading forex if you choose to trade major currency pairs, you will usually fall
into the following forex pairs
.
The most common major currency pairs and symbols are
:
EUR/USD
USD/JPY
GBP/USD
AUD / USD
The most popular trading pairs also include
:
NZD / USD
USD / CAD
USD/CHF

12. USD/CHF
The values ​
​
of these major currencies constantly fluctuate against each other, as the
volumes of trade exchanges between the two countries change on minute-by-minute
basis. These currency pairs are naturally associated with countries that have
financial strength and large volumes of trades all over the world. These pairs are
also characterized by high volatility, and price fluctuations can be high during the
day
.
When you first get into the forex trading market, the first thing you will needto
determine is the foreign currency pairs you will be trading. Although there is no right
or wrong answer when it comes to your chosen currency pair and the majors are not
necessarily the best, they do have the best trading conditions as their spreads are
low. However, no matter which currency pair you choose, it is always essential to
trade a successful trading strategy and implement your strategy properly on the
trading platform
.
Forex Education: Who Can Trade Forex
?
The most important traders and investors in the forex market are
:
Central banks
.
governments
.
private banks
.
Hedge fund investors
.
ETF investors
.
intermediaries
.
Beginners, Professionals, and Investors
.

13. Of all the forex market traders, central banks have the greatest influence on forex
prices. Indeed, their policies (quantitative easing) and decisions (interest rates) are
regulated by the "supply" of the currency and they are responsible for it
.
Novice traders and investors have only a limited influence on the forex market, due
to the amount invested compared to the total amounts of trillions of dollars in
existence
.
To understand the forex market, one must know that the supply and demand for
currencies is constantly evolving. Traders can track price development through
trading platforms using candlesticks or charts
.
Forex Education Steps for New Affiliates
After comparing several brokers and their trading account types, the trader opens a
trading account with the best broker and deposits his money for investment
.
You must have downloaded the MetaTrader trading platform
.
Now, you have many financial tools at your disposal to start trading forex online. The
next thing that a trader should do before starting to trade is to train on the instrument
or market he wants to trade on
.
It is not recommended to act quickly, although it may be interesting about trading
patterns or market situations. But for this, the trader must have experience
.
Fundamental analysis can cover as many aspects as a trader deems appropriate,
but the most basic are
:
Exact conditions for entering the market with an order
money management
Estimated operation assumption time

14. Forecast of fluctuations for the relevant period
Proximity to relevant economic events
-
And most importantly - the conditions for exiting the process
.
All this must be analyzed before any operation is carried out. Once again, analysis is
the key to forex trading. Analyze the good things for both the emotional side of the
trader and for his account balance
.
The ability to find, analyze, synthesize and apply information is what provides
success in forex. Taking these actions is what makes the difference between
success and failure in online forex trading
.
After all these analyzes or preparations, the process itself is carried out with a simple
click of the mouse, using specially developed software, which is usually known as a
trading platform or a trading platform. Clicking is the least important part of the
negotiation, and the important thing that has been done before
.
To understand how forex works you must know what moves the forex market
!
To know how forex works, you first have to understand well how this market works,
and therefore ask yourself the following questions
:
What do I know about the basic principles of price formation for every asset in the
world
?
What is the basic structure of the trade industry
?
What is the nature of international economic interactions
?
What are the basic principles of basic schools and market analysis techniques
?

15. What are the psychological characteristics of a trader
?
What actually happens when the merchant presses a button
?
Supply and demand
In economics, supply and demand is a model that explains the formation of prices in
a freely competitive market. The same principle applies to the foreign exchange
market or the forex market
.
Every time a currency is bought, more demand is created in the market, which
pushes the price up
.
Likewise, every time a currency is sold, an excess of supply is created, which
pushes the price of the currency down
.
The impact of each purchase and each sale in the forex market is directly
proportional to the trading volume of each transaction
.
The price equilibrium philosophy is the key to understanding how forex and online
currency trading works, as all economic events in the world have an impact on the
market
.
The general logic is simple. Everyone who begins to do trading activity thinks about
the following question: How can I make money in forex trading. This market trader
buys something when he thinks it will rise in value, or sells it when he thinks it will fall
in value
.

16. For example, imagine that the value of the Euro today is $1.0845. Once the market
is analyzed, the trader believes that this value will increase in the next 24 hours.
Open a buy today and wait. The next day the Euro is worth $1.0895 and the trader
closes the position, guaranteeing a profit of 50 pips
.
How much money does this represent
?
It will depend on how much money the trader has invested in this particular
operation. The profit can be as high as $5,000 or even $50,000
.
Draw a mind map of the industry before you get lost
When you think about how the currency market works, imagine an ever-changing
ocean. There are many fish in that ocean, from big to small, depending on their
purchasing power
.
In addition, there are decisions about monetary policy and forex trading that cause
large waves, and unbalance the prices of most assets. There are medium-sized fish
- private investors, companies in need of hedging, private banks, and then there are
small participants - financial brokers, smaller banks, small investors
.
Most of the aforementioned market participants have direct interbank access to
forex, the market where all the magic of currency trading takes place. This means
that they can work between them without having to go through intermediaries
.
The smaller participants, interpreted as the plankton of the financial ocean, try to
survive long enough to grow further as a retail forex trader, which of course includes
you
.
The buying power of a casual trader is generally very small compared to the big
shots that you need a forex broker or bank to provide you with a leveraged trading
account and market access through the trading servers
.

17. Understanding how the forex market works, as well as one's attitude to the volume of
things, will inspire the necessary caution when trading
.
I want to invest in forex
Our advice, work with a trusted broker
Start playing
Forex is the currency market. Currencies, unlike other stock assets, are economic
instruments as well as economic indicators. Generally speaking, if countries were
corporations, the currencies would be their stocks
.
Policies in central banks are the main adjuster of the capital supply, making
decisions about their monetary policies a primary factor influencing forex trading and
how it works
.
The most obvious and simple example is the interest rates that the National Bank
sets for every country in the world. Like the US dollar, the euro, the British pound,
and the Japanese yen, they are the most traded currencies in the world
.
The Federal Reserve, the European Central Bank, the Bank of England and the
Bank of Japan, respectively, are the "big shots" of the ocean
.
Understanding how all of this affects the economy will help you understand how the
forex market works
.
Pay attention to interest rates

18. The forex market, which reflects the prices of currency pairs, is affected by several
factors
:
interest rates
political and economic news
natural disasters
Gross Domestic Product (GDP
)
Supply and demand for the underlying instrument
You can always check the latest news from the economic calendar that displays the
most important news for the day and week and their impact on the related financial
instrument
When interest rates rise, something that can only be done by national banks, it is
more expensive for market participants to borrow that currency from the central
bank. In moments, this leads to a shortage of currency and leads to an increase in its
price
.
What is true good? Who does not want a strong national currency
?
Well, not really. In the short run, this means that there will be less capital to develop
trade relations, lower national income and, ultimately, a slower rate of economic
growth. However, it also slows inflation and the inevitable rise in debt - which is a
good thing in the long run
.
Alternatively, when interest rates are reduced, all market participants can borrow
more capital. Intraday, an excess supply of capital is created and the price of the
currency falls. In the short term, this means expansion of firms, increased national
expenditures and growth of the economy
.

19. Does it look really good
?
Well, again, not really. The more money you borrow, the more capital you owe. In the
long run, the accumulated credit in the bank falls on everyone's heads as if a great
storm created a financial crisis. This is called the macroeconomic cycle
.
This process is common in all economies of the capitalist type. National banks are
constantly trying to balance the scales by raising and lowering interest rates. This is
called the microeconomic cycle
.
These business cycles are similar to those of climate change - slow, unstoppable,
and too dangerous for market participants who can't see their arrival time
.
Forex analysis is an integral part of forex education
Forex analysis is not the only key to success when it comes to trading; It is, in a way,
the ability to do good analysis is essential to becoming profitable in the forex market
.
There are two main methods of market analysis: fundamental analysis and technical
analysis
.
The first of them can be absorbed in the financial audit of countries, countries or the
whole world. It is the oldest form of analysis and takes into account many elements
such as the current economic situation, the expected situation, and the political
climate
.
Gross domestic product, unemployment rates, inflation, trade balance, retail sales,
elections, natural disasters, and wars are factors that can be considered when
conducting a basic analysis. It requires a good understanding and knowledge of the
global economy, as it deals with factors that the markets may not have taken into
account yet. Most investors use fundamental analysis to make long-term decisions
.

20. The downside of this analysis method is the resulting aberration due to the large
multiplicity of important parameters
.
On the other hand, technical analysis is the latest analysis method. It is based on
two factors: time and price. Both are measurable. This is why many forex traders
prefer technical analysis over fundamental analysis
.
When you use support and resistance, identify key areas or look at indicators or
candles, you do not get information about the cause of the change in supply and
demand
.
To make it easier, fundamental analysis is based on economic factors and their
predictions, while technical analysis is based on what happened in the past in market
cycles with the formation of statistics for them
.
Why invest in forex
Below, we will examine the various reasons why the forex market, in less than 20
years, has been one of the trendiest. These reasons make forex trading a great
choice for both novice and experienced traders
.
Ease of access
Unlike other markets where you have to deposit large amounts of money, in the forex
market you can work with a very low deposit
.
Is this why forex trading is so special
?
Not right. Ease of access makes forex trading popular, but other features that
certainly indicate why this activity is so widespread
.
volatility

21. The mechanics of trading are very simple: you buy an asset at a favorable price and
then sell it. How do we relate the concept of volatility to the market? Well, the more
volatile the market, the more opportunities there are to buy and sell an asset
.
Supply and demand
When trading forex, you can expect almost instant demand for any currency,
regardless of its size
.
As long as normal market conditions exist, you can be sure that your orders are
executed within seconds, since there is a lot of supply and demand in this market
.
For this reason, the forex market is considered the most liquid in the world
.
Technological developments
Advances in technology are a great advantage of forex trading which is what makes
it so special
.
Why is the forex market so advanced in the technological aspect
?
The number of forex brokers is very high and the competition in the market is
intense. This makes the forex market very competitive and this forces the brokers to
provide the best possible conditions for their clients
.
While brokers have to suffer different costs in order to reduce their margins, different
trading platforms help them get a larger market share to increase their income
.
For this, some brokers prefer to invest in the development of their trading platforms,
when Admiral Markets offers them the latest version of the most popular trading
software, MetaTrader Supreme Edition
.

22. In addition to providing the market-leading forex trading platform, Admiral Markets
also enables its clients to trade through the MetaTrader apps for iOS and Android
devices
.
When you try forex trading, you will see that the developments in this software are a
clear reason why this market is excellent for trading
.
advanced society
With the emergence of forex trading and its development with the development of
the Internet, so did retail traders who are looking for additional information to excel in
their trading potential
.
This has given birth to a large number of forums in forex trading that have a large
number of active contributors, and the ability to find information about this market in
almost any language. Since the market operates 24 hours a day, 5 days a week,
there are forex traders from all over the world
.
In addition to forums, forex traders can find different means and different new ways
to communicate. Despite the fact that there are a wide variety of groups on
Facebook about forex trading, this market has developed into something bigger, due
to the presence of many social networks specially designed for traders
.
Is this why forex is so social
?
Not quite right. There is still more. Forex trading has evolved beyond pure
communication to take action. The forex market is a very interesting market because
it has given rise to what is known as social trading
.
Forex trading on margin
As we have already explained, trading with CFDs makes it possible to trade with
margin and leverage. This distinguishes forex CFD trading from other markets where
you must have a large capital to make large volume transactions
.

23. Possibility to learn with demo accounts
If you want to test this market and see if forex trading is right for you, you have the
possibility to learn with completely free demo accounts
.
For this you can open a trading account with playing money and start practicing
within a few minutes. These types of accounts do not require any deposits or any
other commitment on your part. All you have to do is register to open a demo
account with Admiral Markets and you will immediately receive in your email the
information to login to your account
.
The conditions in the demo account are similar to those in the real accounts, so you
can improve your skills in working with virtual money without making any deposits.
For this reason, it is very easy to start trading in the currency market
.
video-previewplay
Regulation and licensing in the forex market
There is strict control over forex trading and many brokers are regulated by more
than one regulatory body. This means that even though it is a decentralized market,
it is still a safe market to operate. However, this point only applies to brokers that are
regulated and licensed
.
Conclusion in Forex Education
Don't let forex trading scare you. Instead, try to remember that success in forex
depends on good training and a lot of practice (without risk
.)
The good news is that we are with you
!
We hope that we have succeeded in providing you with a good start in forex
education and trading in the financial markets. And how you can constantly support
and build your knowledge, and most of all: continue and persevere in learning
!

24. If you have questions and inquiries, do not hesitate to register your details here , and
one of our best financial advisors will contact you to clarify any inquiries and
questions on your mind, and provide the best information from their practical
experience
.
Here are also some articles that may interest you
:
1
.
Currency trading for beginners | Your Ultimate Guide for 2020
!
2
.
How to choose the best trading company in 2020
3
.
How to protect yourself from scam trading companies - your guide from Admiral
Market
who are we
?
As a licensed trading company, Admiral Markets provides its clients with the
opportunity to access the global financial markets through the best platforms and
different types of accounts that suit your needs. Whether it is a demo or real account
, you have the opportunity and the ability to trade forex and more than 8000 trading
instruments on CFDs for stocks, energy sources, precious metals, and global indices
with the best conditions and services necessary for that. Open an account now and
start a new success story with Admiral Markets
.
This article does not contain and should not be construed as containing investment
advice, investment recommendations, or an offer or solicitation of any transactions in
financial instruments. Please note that this past analysis is not indicative of current or
future performance, as conditions may change over time. Before making any
investment decisions, you should seek advice from independent financial advisors to
ensure that you understand the risks .positions
.

25. Margin Level
It is (Equity / Margin) * 100. When the level is 100%, it means that the Equity and
Margin are equal. So the trader has no free margin to trade (open more trades). This
is called a margin call
.
Assume an account with a balance of 10,000 euros with a margin of 1,000 euros. If
you accumulate 9,000 euros in losses on this position, your margin equals your
equity, which is 1,000. This is called a Margin Call
.
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