The currency market or exchange market is a market characterized by free currency exchange, that is, its main objective is to facilitate international trade and investment. It is also known as FOREX (Foreign Exchange, which translates as foreign currency exchange)
Learn about the most popular currency pairs in the Forex world
Euro / US Dollar, referred to as USD / EUR
The British pound / US dollar, referred to as (USD / GBP)
The US dollar / Japanese yen, referred to as (JPY / USD)
The Euro / Japanese Yen, referred to as (JPY / EUR)
The Australian dollar / US dollar, referred to as (USD / AUD)
New Zealand dollar / US dollar, referred to as (USD / NZD)
Canadian dollar / US dollar denoted by (USD / CAD)
Euro / US Dollar, referred to as USD / EUR
The British pound / US dollar, referred to as (USD / GBP)
The US dollar / Japanese yen, referred to as (JPY / USD)
The Euro / Japanese Yen, referred to as (JPY / EUR)
The Australian dollar / US dollar, referred to as (USD / AUD)
New Zealand dollar / US dollar, referred to as (USD / NZD)
Canadian dollar / US dollar denoted by (USD / CAD)
What is Forex Trading? / forex trading
When you trade Forex, you are buying one currency in exchange for another, so the forex trader speculates on a currency pair and not just one currency in itself
Currencies are traded in the forex market in pairs, such as the British pound against the US dollar, the US dollar against the euro, with the aim of making profits through price differences
Currency prices are determined in the forex market based on the rate of supply and demand, while the difference in price between them is known as the "spread"
The forex market has a very large group of currencies in the world, and the foreign currencies in the market are divided into: major currencies, minor currencies and western pairs , and the major pairs include the 7 most common pairs mentioned above, while in the secondary pairs the major currencies are traded in Between them, except for the US dollar, the western pairs have one major and one minor currency such as USDNOK and EURTRY
The trading price of a currency pair is the value of the quote currency that you can buy for one unit of the base currency
Take the EURUSD currency pair for example, when you buy this currency pair, it means that you are buying the Euro using (selling) the US dollar
When you sell the currency pair, it means that you are buying the US dollar using (selling) the euro
Currency pairs are displayed as prices that reflect the ratio between the currency pair's values
For example, the purchase price of the British pound against the US dollar is 150514, that every 1 British pound is equivalent to 150514 US dollars
Forex Currency Pairs Groups
Forex currency pairs are divided into three main groups - the major currency pairs, the minor currency pairs and the non-traded currency pairs
The main difference between the pairs is their liquidity, which results from the trading volume of these currency pairs
Example: Major currency pairs are the most traded currency pairs, and each pair includes the US dollar and another currency, while the minor currency pairs include one of the three currencies that do not include the US dollar (the euro, the British pound, and the Japanese yen)
To learn more about forex trading or anything about investing in forex, we recommend that you visit the educational section, as there you can find terms, video trading lessons and webinars
At AvaTrade we provide direct access to the foreign exchange market through our trading platform, and you can also open an account to trade on for free only when you register with us, as the main goal we are looking for is to establish long-term relationships with our clients, so we are keen To support them with educational materials that can help them make successful trading deals
Why is AvaTrade one of the best brokers for Forex trading?
International Regulation
Working with an internationally regulated Forex broker is one of the most important matters of our time, and AvaTrade is considered one of the brokers that have international regulations on the Internet, it is regulated by 7 jurisdictions, as the company guarantees you low prices, in addition to maintaining the integrity Your money to have a lot of solutions in case you run into any problem
Competitive spreads when trading foreign currencies,
every trader must monitor his own trading costs first in order to improve his profitability, as the main goal of forex trading is to achieve profits while avoiding risks, and for this reason AvaTrade has signed an agreement that enables you to trade financial assets with Competitive spreads at all times, in addition to up to 20: 1 on currency pairs
Distinguished trading conditions
, thanks to many years of experience in the field , AvaTrade has succeeded in creating a distinct trading environment for its customers, from speculation that does not contain any restrictions and short selling to unlimited clearing and hedging operations and others, the company offers a large number of asset classes that They can be traded like , , CFDs, cryptocurrencies, , etc, in order to diversify your investment portfolio
Manage your trading manually or use automated trading, as AvaTrade provides many convenient and easy-to-handle platforms that you can need to boost your trades, from the Icon to the platforms such as , MetaTrader 5, WebTrade, applications and You can select the type of trading experience you want with AvaTrade
When you trade Forex, you are buying one currency in exchange for another, so the forex trader speculates on a currency pair and not just one currency in itself
Currencies are traded in the forex market in pairs, such as the British pound against the US dollar, the US dollar against the euro, with the aim of making profits through price differences
Currency prices are determined in the forex market based on the rate of supply and demand, while the difference in price between them is known as the "spread"
The forex market has a very large group of currencies in the world, and the foreign currencies in the market are divided into: major currencies, minor currencies and western pairs , and the major pairs include the 7 most common pairs mentioned above, while in the secondary pairs the major currencies are traded in Between them, except for the US dollar, the western pairs have one major and one minor currency such as USDNOK and EURTRY
The trading price of a currency pair is the value of the quote currency that you can buy for one unit of the base currency
Take the EURUSD currency pair for example, when you buy this currency pair, it means that you are buying the Euro using (selling) the US dollar
When you sell the currency pair, it means that you are buying the US dollar using (selling) the euro
Currency pairs are displayed as prices that reflect the ratio between the currency pair's values
For example, the purchase price of the British pound against the US dollar is 150514, that every 1 British pound is equivalent to 150514 US dollars
Forex Currency Pairs Groups
Forex currency pairs are divided into three main groups - the major currency pairs, the minor currency pairs and the non-traded currency pairs
The main difference between the pairs is their liquidity, which results from the trading volume of these currency pairs
Example: Major currency pairs are the most traded currency pairs, and each pair includes the US dollar and another currency, while the minor currency pairs include one of the three currencies that do not include the US dollar (the euro, the British pound, and the Japanese yen)
To learn more about forex trading or anything about investing in forex, we recommend that you visit the educational section, as there you can find terms, video trading lessons and webinars
At AvaTrade we provide direct access to the foreign exchange market through our trading platform, and you can also open an account to trade on for free only when you register with us, as the main goal we are looking for is to establish long-term relationships with our clients, so we are keen To support them with educational materials that can help them make successful trading deals
Why is AvaTrade one of the best brokers for Forex trading?
International Regulation
Working with an internationally regulated Forex broker is one of the most important matters of our time, and AvaTrade is considered one of the brokers that have international regulations on the Internet, it is regulated by 7 jurisdictions, as the company guarantees you low prices, in addition to maintaining the integrity Your money to have a lot of solutions in case you run into any problem
Competitive spreads when trading foreign currencies,
every trader must monitor his own trading costs first in order to improve his profitability, as the main goal of forex trading is to achieve profits while avoiding risks, and for this reason AvaTrade has signed an agreement that enables you to trade financial assets with Competitive spreads at all times, in addition to up to 20: 1 on currency pairs
Distinguished trading conditions
, thanks to many years of experience in the field , AvaTrade has succeeded in creating a distinct trading environment for its customers, from speculation that does not contain any restrictions and short selling to unlimited clearing and hedging operations and others, the company offers a large number of asset classes that They can be traded like , , CFDs, cryptocurrencies, , etc, in order to diversify your investment portfolio
Manage your trading manually or use automated trading, as AvaTrade provides many convenient and easy-to-handle platforms that you can need to boost your trades, from the Icon to the platforms such as , MetaTrader 5, WebTrade, applications and You can select the type of trading experience you want with AvaTrade
Forex trading resources
AvaTrade provides high-quality educational materials and daily market analysis, as the company enables traders to access a comprehensive library that includes educational resources such as and e-books, in addition to easy-to-use trading tools such as the Economic Calendar, Automated Trading, DupliTrade and ZuluTrade systems
Excellent customer service Customer comfort with AvaTrade is one of the most important things the company cares about in the first place As we provide customer service in your language, you can also use it through our Facebook, Twitter and YouTube, in order to get all the news related to the market
How do you open an account to trade with AvaTrade?
At first, visit the home page and click "Register Now" A window will appear for you regarding your details such as name and email address, which you must enter You can also register using Facebook or Google accounts, which is a very quick way to register
After the registration is done, you will get your login credentials, and you will be asked to verify your account by downloading a copy of your identity, and then you can deposit funds into your trading account and start trading operations
Trade Forex with AvaTrade, and enjoy the benefits of an award-winning and global broker!
How can you trade Forex with AvaTrade?
Forex trading platforms
AvaTrade offers a wide choice of trading platforms, both manual and automated, with unique features and tools to customize your trading experience
Whether you are interested in trading on your account or imitating others, our optional group is for all translators, so you can make sure you find the right option for you
We also offer an option to open a demo account on each platform in order to be able to practice trading on your chosen platform, with the goal of mastering your trading skills before you begin to actually trade with your money in the market
How can you open a trade position in the forex market?
In the following we will explain 3 ways to open a trade position on the MetaTrader 4 platform with AvaTrade:
Order window: Double click on the asset you want to trade, an order window will appear, fill in your trading information such as volume, lot, stop-loss levels, order type, whether market execution or pending execution) in order to then buy or sell the asset
Chart trading: Right-click on the asset chart window you wish to trade and select the word "Trade", and then set the trading parameters
One-click trading: You can activate trading by pressing once on the tab in the main menu, the trade available to you will appear in the trade section Then you start to buy or sell assets with one click
How can you download the MetaTrader 4 platform to start trading Forex with AvaTrade?
You can follow the following steps if you want to invest in Forex through the MetaTrader 4 platform:
Click on the AvaTrade MetaTrader 4 download link from the company's homepage
Run the avafxexe file
Enter your real account login information here
Start trading your favorite assets
Trade Forex with AvaTrade, and enjoy the benefits of an award-winning and global broker!
Leveraged trading
The ability to hold larger trading positions than a person owns capital is possible through the leverage feature provided by the brokerage firm
At AvaTrade, traders can enjoy up to 20: 1 leverage on most of their currency pairs
This means that the trader needs only 025% of the trade size in order to open a position
For example, if the euro currency pair against the US dollar is quoted at a bid price of 11123
To open a position of 100,000 units of the financial instrument, the trader needs 100,000 euros or 111,230 dollars
However, thanks to the leverage, the trader needs only 025% of the value of the deal, that is, 27807 US dollars or 250 euros
The ability to achieve leverage for a position is a great advantage that can increase the trader's profits
However, it must be borne in mind that the losses can also be significant
How do you calculate the cost of a forex trade?
When a trader opens a position through AvaTrade, he does not change any other commissions besides the spread
This difference is the difference between the buy and sell price which is calculated in pips - the fourth number after the pip
For example, if you buy the euro against the US dollar at 11123 and sell it at 11120, the difference in price is 3 pips
The difference in the price restricted on a position opened by a trader is the price difference multiplied by the size of the deal AvaTrade clients can choose between trading forex with a fixed price difference versus trading with a floating, flexible and changeable price difference, where the spreads are displayed starting from a minimum of 08 pips
How do you calculate points in Forex trading?
Price movement is measured in Forex trading in points, where currency exchange rates publish some very small differences, and the point is the last decimal place for the prices of the currency pair, where the price contains four decimal points, and some rise to 5 decimal points
When you trade a standard contract such as (100,000 units of currency), the pip value is fixed at $ 10 in the event that the US dollar is the quote currency, such as the EURUSD pair, when the US dollar is the base currency, such as the USD CAD pair, the point is calculated at $ 10 of the exchange rate Current, example of this if the price is 12000 then the pip value will be $ 83 ($ 10 / 12) When it comes to the Japanese Yen (JPY) the rule is to multiply the result by 100
Range of markets
AvaTrade provides traders with the ability to trade more than 50 currency pairs, as well as all major, minor and non-tradable currency pairs
For more information on leverage and spreads for all currency pairs offered by AvaTrade, please take a look at the trading conditions and fees
Trade Forex with AvaTrade, and enjoy the benefits of an award-winning and global broker!
What are the factors that affect the Forex market?
The foreign exchange rates in the market depend on several factors, including the rate of supply and demand, political and economic stability and monetary policy of countries, as the decisions of central banks and monetary policies taken by some countries are the main engine in the market, in addition to economic data issued by central banks and financial institutions Global, which relates to unemployment rates, total consumption, spending, etc
Investors expect what may happen in the market prior to this data In the event that their expectations exceed the issued data, the price of the asset will decrease, and when their expectations for data and reports decrease, the price of the asset will rise
As for other factors that may affect the foreign exchange rate in the market, they are the news reports of each country, the positive of which plays a role in increasing the demand for the currency of this country and thus the currency rises and vice versa
Market sentiment is one of the most prominent factors that may affect the movement and activity of the market When investors expect that the currency will head to the downside, they will trade with a decline, which reduces the demand for the currency and thus its price decreases
Another important factor is the credit rating of each country's currency, which is an independent assessment of the likelihood of repaying the country's debts
How to adopt a robust Forex trading strategy?
We cannot underestimate the importance of strategic strength in forex trading, so this plan must be adhered to under any pressure, as saying is easier than doing, and to build a strong strategy for trading in the forex market, you must follow the following:
A timetable
you must determine whether you will trade in the short term or the long term, as this timetable indicates if you are exploited, your focus may be on short term charts such as the minute and five minutes chart up to the 30 minute chart, but if you are looking at the charts Long term, which may last up to a day or a week
The trading methodology
must decide whether you can trade technically or fundamentally, as technical analysis consists of predicting the direction of the price in the future based on past price movements, while the fundamental analysis is an analysis based on how economic, political and social factors affect the prices of financial assets
Trading Rules
Point of Trading Rules is the backbone of your trading strategy, and this includes trading hours, trade ins and outs, stop-loss levels, profit-taking and indicators as well as how to deal with economic news
Risk management
The trading process contains the element of risk, and this makes it clear that your success may depend on your ability to manage risk, you must clarify your trading strategy and the times you trade it, the maximum withdrawal limit, your hedging plan, as well as how to retrieve the open positions, this matter It may make you a balance between your profits and your investment
Testing and optimization
You must test your strategy before placing a large capital, and this confirms that our demo account is very useful We provide free demo accounts that help you test your strategy without any risks AvaTrade supports automatic back-testing of your automated strategy