First Lesson Currency Market

First Lesson
Currency Market

Is undoubtedly the currency market of the largest global markets at all, what is pumped every day more than trillions of dollars is the most popular markets without doubt because of this market features and services rarely found in other markets and before we come to define this market
We will remember what the market is like
What makes the currency market one of the most popular and popular markets is the following
1- Market is traded on 24 hours a day for 5 days
This means that it is suitable for everyone and anyone who has been according to the schedule of daily operation can be traded
2 - may not require excessive as other markets, which requires that the liquidity is high for satisfactory profits 3 - Software and orders in the currency market different from other markets

We will mention this feature in more detail

4 - Market follows technical analysis and basic analysis like other markets, but on the contrary, currencies are more committed to technical analysis than other markets

So what are the currencies?
The currency market in short is a large exchange market in which the currency is exchanged as the buyer sees according to the data based on it
For example, when you see that the turnout will be towards the euro, you are buying the euro now in the hope that the rate will rise purely for the other currencies and here, after the rise, you will find that your purchase produced a profit

for example
When the euro exchange rate = $ 2 currently
And you have converted $ 1,000 to a Euro counterpart, you can only buy € 500 here because of the exchange rate against the dollar

Now what if the euro rose more against the dollar and became the exchange rate
In the following verse
EUR = $ 2.5 and not as its predecessor when it was a calculator
EUR = $ 2
Here you'll find a high rate of exchange to $ 2.5
Your Euro is equivalent
500 * 2.5 = $ 1250 and not as the previous $ 1000

Profit permission $ 250

This is the idea that is based on the currency market in short
They are money changers as are exchange shops
But more organized and managed

How trading in the currency market looked

It should be recalled that the currency market before 1996 was the monopoly of the major banks such as central banks and senior financial institutions and institutions,
The cut meant that the minimum trading allowed was $ 100,000
Every contract must be so much
But with the development of communications and the Internet, employers of these markets have found it useful to open this market to the public and individuals to share it with their facilities

They introduced intermediaries who played a prominent role in winning large numbers of traders and entering more preparation
The movement has become very excited and fertile ground for speculators. What speculators achieve in these markets may not be able to achieve any project and I say any project was not just another market
What speculators may achieve in the currency market may reach 100% in one day, so that some of them achieved more than this in one day
We will also talk about this in detail

As we have said, the emergence of intermediaries has helped to create larger numbers of traders with different categories and material possibilities
It is no wonder that we can say that anyone can be traded for around $ 300 only, which means about 1000 riyals and make profits when you find the trade more than what you might earn from another market and more than this amount ten times

With the development of market systems and the emergence of intermediaries who have accepted to provide facilities for their clients to trade the market no matter how much capital

How brokers played a role in rallying traders

Everyone knows that the currency market may differ from stock markets with some differences
Which is called the contracts and Mar Jean

Before we go into this we will talk about how to trade currencies
We said earlier that these were called the cut-off markets
Cutting means that each piece is valued at $ 100,000
This was a difficult sum for everybody

Here came the mediators who adopted this dilemma to the traders and facilitated them
And so on
You do not have to have this amount to open a single contract
We mean intermediaries who will provide you with no trouble
And without interest is also riba
So the customer has to pay a sum of insurance no more
Betting on the market
And here created the service contracts and Mar Jan

Instead of putting the trader $ 100,000 to open a single contract
The Broker shall ensure that this amount is placed in place of the Dealer
The trader should only agree with the broker about the value of the insurance
They are either
$ 1000, 500, 250
And the mediator to complete this amount until the value of one contract already was as it was $ 100 thousand dollars
The paid $ 1,000 will put the broker at $ 99,000
If you put $ 500 in insurance, the broker will put $ 99,500
And so on
Will be in the market driven by liquidity is very high equivalent to almost the text of one million riyals for those who open a single contract for $ 250 and the more the number of contracts and you opened the more liquidity and entered the market
If, for example, 10 contracts with a $ 250 security guarantee are all you have set up, only $ 2,500 from your account to enter the market is backed by a high liquidity of up to $ 1 million from the broker account

Imagine what you might gain from the amount of $ 1 million if you know how currencies move

Here we ask whether there are any other consequences of this mediator

Of course, the entry of a person in the amount of $ 1 million in the form of facilities in a very volatile market and movement is very strong around the clock may be a huge loss
A person may not be able to pay the broker

And before we know this how they should know
The nature of the movement and the calculation of profit and loss rates

That the movement of currencies is a very volatile and volatile movement and that the reasons for this strong movement is the strength of Margin used in this market, everyone brings a small amount and uses Margin high on the expense of intermediary
So opportunities are available all the time for quick speculative action that produces the greatest profits