Forex trading

Forex trading

is a process of changing one currency against another for a variety reasons such as commercial conditions , tourism conditions or other , Forex market provide a way to hedge currencies risk by fixing a rate at which the transactions will be completed, also the trader is buying or selling currency in swap market which locks in an exchange rate, trade flows, tourism and  economic strength affect  supply and demand for currencies, also create daily volatility in Forex markets, Forex trading refers to the buying and selling one currency exchange for another, it is the most heavily and largest trading in the world, so many business men and countries all participate in it, for example, when a person goes on trip and convert one currency to another, by this way, this person is participating in the global foreign exchange market, in Forex market, currencies always trade in pairs, when the trader exchange, there are two currencies involved, for every foreign exchange transactions, trader must exchange one currency for another, the trader  on Forex market is  range from huge financial organizations which mange billions to individual who trade with a few hundred dollars, Forex trading is the biggest finical trading in the world with daily volume of more $5 trillion.

the Forex market uses symbols to designate specific currency pairs such as euro is eur, us dollar is usd, British pound is gbp, Japanese yen is jpy, Austrian dollar is aud, Newfoundland dollar is nzd or others, each Forex pair have a market price associated with it, many currencies pairs move about 50 to 100 pips, its movements depend on overall market conditions, pip value is how much each pip is worth , the first currency listed in the pair is always being the directional currency on  a Forex price chart, when the price on the chart is higher, the value of first currency will be higher relative to the second currency, but when the price on the chart is lower, the value of first currency will be lower relative to the second currency.

the exchange rate between two currencies is the most thing in Forex market, exchange rate change several time at second, also exchange rate show the health or unhealthy of  economy of first  currency against  second currency, ,when the first currency go up that reflect the higher exchange rate and the better economy of first currency  against the second, also reflect trader's profit, but when the first currency go down that reflect the lower exchange rate and the badness of economy of first currency  against the second, also reflect the trader's  loses.

Forex trading include long trading and short trading, long trading is a process which trader buy currency pair wishing to sell it later at a higher price, but short trading is a process which trader sell currency pair wishing to buy it later at cheaper price, either short trading or long trading are depending on the up or down of exchange rate.

the spread for Forex pair consists of a bid price and offer price, bid price is a price which the trader sell and it consider the lower end of the spread, the spread of bid price reflect the price of selling for the first currency to second currency, but offer price is a price which trader buy and it consider the higher end of the spread, the spread of offer price reflect the price of buying for the first currency to second currency, and through these transactions, the trader will determine his profits or losses.

In Forex trading, there are a leverage which offer by Forex broker, so the trader can trade with more money that he have in his deposit, and take a large position and get bigger profits or losses.

 to enter Forex market, trader must have a device with Internet access, then open his trading account with Forex brokers and practice his trading, also he  must have a great care when placing his trade to avoid losses and have a lot of profits, after he pick a currency pair, then choose quantity, and  press buy if he think that the value of currency will increase to get profits, or  press sell if he think that the value of currency will decrees to save his money and avoid losses, further more for beginner trader, it is preferred  to open free account to practice Forex trade first and getting much experiences about Forex trading in practically without risk or lose.