Forex trading steps for beginners 2023

Forex trading steps for beginners Forex started on the basis of the barter principle, where in ancient times people practiced the process of trading by bartering goods with each other because there was no money or banknotes at that time. The barter system was the basic building block of the currency trading system. Trade such as snails, precious stones, and others in commercial operations, where the value of the commodity is determined by a certain number of these means, such as buying meat for four snails.

Forex trading steps for beginners

Soon these mediums were replaced by pieces of gold, silver and precious metals, then people tended to use paper currencies as an alternative to gold and silver. So that banknotes were printed that express a certain amount of gold, and this was the beginning of the emergence of the money we know today.

How much is the trading volume in the forex market?

Forex trading steps for beginners – The forex market is the largest financial market in the world in terms of liquidity and trading volume, reaching $7.5 trillion per day in April 2022, equivalent to approximately 28.2 trillion Saudi riyals per day. Forex cannot be compared to any other financial market in terms of liquidity.

For example: The New York Stock Exchange (NYSE), which is the largest stock market in the world, with a daily trading volume that does not exceed $70 billion.

Who trades in forex? What is the reason for his huge liquidity?

This huge liquidity in the forex market is due to the presence of different categories of traders such as major investment banks, central banks, investment funds, investment management companies, brokerage firms, individual traders and traders for non-financial purposes such as hedging purposes.

Forex trading steps for beginners In addition to the development of means of communication and trading via the Internet, and the use of financial facilities or financial leverage for trading in Forex, this is what attracts more and more investors to the currency market day after day.

Read more: How to earn money for beginners 2023

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Forex trading steps for beginners
Forex trading steps for beginners

When can forex be traded? Forex market opening times and trading hours

Forex trading steps for beginners – The forex market is a decentralized market that operates through various means of communication around the world without a specific geographical location as a center for trading.

As the market operates 24 hours a day, for five days a week, from the beginning of trading on Monday until its end on Friday, and the market closes on Mondays Saturday and Sunday are international weekends.

Forex market trading goes through four main periods: the American, European, Asian and Australian trading period, and thus trading does not stop throughout the day as these periods overlap with each other and continue for the next day.

Pairs trading in the forex market

Forex trading steps for beginners – Trading in the forex market takes place in pairs, whereby two currencies are added together in one pair, and one currency is traded against the other.

It means selling a currency in exchange for buying another currency at the same time, that is, the currency pair contains two currencies, a base currency and a counter currency.

Each currency pair has an exchange rate, which expresses what is required to be paid from the base currency to obtain one unit of the counter currency.

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