Man has always practiced commerce, which over time has become one of the most important activities.
As time went by, commerce saw many developments which were in line with human needs, commerce is an activity to generate income and satisfy different needs but for some people it is a hobby or a means of wealth and luxury. . Currently the Internet is available all over the world, even in developing countries, and using it digital commerce was invented.
What are the first stages we go through when trading forex?
For those outside the field of the digital economy, the concept of trading may seem frightening at first glance, given all those numbers that seem to confuse new traders, which is why professionals in this trade always advise beginners to approach the world of the digital economy in general, and the forex market in particular, to slow down and avoid running towards profit. It has been observed that those who suffer from financial difficulties are the first people who are placed in the mouth of the cannon, without realizing the potential risks caused by a commercial agreement, but they only look at the positive side that are the funds acquired.
On the other hand, money can go in vain if the person loses a precious agreement. For this, the first step is to spend some time learning the basics of trading, then gradually increase the knowledge ceiling.
Next, you should start with small amounts of money traded and avoid investing large amounts, if these steps are applied correctly, the loss rate will be low and ineffective. What are forex trading terms you should know?
Interpretation of currency pairs: Knowing how much a particular currency is worth when you convert it to another currency, this allows you to choose the currencies to trade with.
The base currency: it is the one that we find to the left of the currency pair, and it is the one that the forex trader buys and then sells. Like the EUR versus EUR/USD.
Margin - is the amount necessary to exist before the conclusion of any deal, which is released upon termination of this deal. Trading platforms: are the means through which transactions can be made on the Internet. These platforms also allow people to follow the market evolution of supply and demand. Leverage: It helps to increase a person's investment capacity in trading, as the foreign exchange market gives traders the opportunity to invest a small amount of money to be able to sweep multiple markets, but you need to know that this leverage can also cause large loss to people. .
Lot/Contract Size: Forex has special units of measurement, such as lots, that indicate the size of a particular transaction. There are different lot sizes, including mini lots and micro lots.
An individual can start trading only after learning about currency pairs on the forex platform, after which he has to study each pair separately, analyzing its most important points. This analysis is at the heart of the forex principle. In summary, we can say that there are three groups of currency pairs traded through Forex: the first group is called major pairs, the second group is known as minor pairs and the last group is exotic pairs.
The US dollar is a currency that is present in all currency pairs
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