Profit from currency or forex trading has become attracting many people who want to invest their money and make a quick profit, and in this article we will explain to you everything related to forex and how to profit from foreign exchange trading through the platforms, in addition to explaining the reasons for the loss, and some important tips for new traders, so we advise you to read this article to the end.
Profit from currency or forex trading
When a foreign tourist comes to Egypt to visit the pyramids, he must pay the entry ticket price, or he may want to buy some souvenirs. Of course, its price is in the local currency (the Egyptian pound), while what the foreign tourist owns is either the euro or the US dollar.
Therefore, this tourist must go to the bank or exchange companies to exchange his currency for the local currency according to the exchange rate available at the moment of exchange, just as the Egyptian citizen, if he wishes to travel to Saudi Arabia to perform Umrah, or travel for tourism in any country around the world, he must exchange his local currency (the Egyptian pound) for the Saudi riyal, or the US dollar, for example.
Profit from currency or forex trading The people in the previous two examples have participated in the largest financial market in the world for currency trading to trade foreign currencies without paying any attention to it, which is called the forex market, in which thousands of people are currently participating in the desire to profit from currency trading.
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What is forex?
Forex can be defined as the process of exchanging currency pairs between buying and selling, and this is what is expressed by the term profit from currency or forex trading, that is, the trader performs two operations on a currency pair at the same time, where he sells one currency and buys another currency for it at the same moment.
Forex is a foreign term that represents an abbreviation of two foreign words, Foreign Exchange, that is, foreign exchange trading, so Forex is a global market like any other market, but the only difference is that the exchanged commodity is currencies.
The daily trading volume in the forex market has reached a very huge number, reaching about $6.6 trillion in April 2019, according to the reports of the Bank for International Settlements, which is considered the main controller of central banks around the world, as it promotes financial cooperation and international monetary between central banks in various countries of the world.
Forex between the past and the present
Profit from currency or forex trading as we all know that currencies of all kinds are very important to the majority of people, companies and countries around the world, because they need to exchange currencies for foreign trade, or for tourism and travel, and their goals of currency exchange were previously limited to that only.
But several years ago, a new goal of foreign currency exchange appeared, which is investment and profit from currency trading, and this is the common meaning of the term forex, as you no longer need to go to banks and exchange companies in order to exchange currencies.
The forex markets are very similar to the stock and bond markets, but forex traders speculate on the fluctuating values of currencies between two countries with the aim of profiting from the price differences as we said. Profit from currency or forex trading is no longer limited to individuals (traders) or small investors, but rather includes trading companies, central banks, investment management companies and hedge funds as well.