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Forex trading is known to be the most common type of trading among speculators in the financial markets on a daily basis, looking for profit opportunities through trading the foreign exchange market. Trading in foreign currencies or what is called the foreign exchange market – Forex is speculation on currency pairs and their movements through Companies and trading platforms dedicated to this.
How does forex trading work?
Forex trading works by entering traders into deals, which are concluded or executed through platforms and trading companies licensed to conduct these deals, such as the well-known AvaTrade company in the world. Forex deals are usually short-term, i.e. day trading.
Forex differs from stock trading, as in forex you choose the size of the deal per lot, but in stock trading you choose how many shares you want to buy.
In forex trading you must adopt Licensed forex trading companies Just avoid fake companies whose ads abound everywhere on the Internet.
Facts about the forex market that many do not know
- The largest financial market at the level of global stock exchanges is the forex trading market.
- Over $6 trillion is traded in the foreign exchange market on a daily basis.
- The trading volume in the foreign exchange market increases on a daily basis, by 53 times the trading volume of the New York Stock Exchange.
- The largest forex dealer in the world is Deutsche Bank.
- The forex market operates 24 hours a day, on a weekly basis.
- The forex market is 27 times bigger than the stock market.
- The most traded pair in the forex market is EUR/USD for spot trading – Spot Trading.
How are reliable Forex trading platforms selected?
The search for reliable forex trading platforms, or trading companies in general, can be shortened by choosing the AvaTrade trading broker, which is known to be one of the largest trading companies authorized in the countries of the world to provide these services.
Trading companies’ licenses can also be examined through websites dedicated to this, as the “Thiqa” website offers the advantage of examining trading companies’ licenses for free to help traders avoid fake trading companies.
You should always choose a trading broker that holds strong licenses, or the so-called first-class licenses. The most important licenses that must be approved are:
- CySEC License cyprus
- UAE ADGM license
- Australian ASIC Licensing
- UK FCA license
When trading with a company that holds one of these licenses, the investor guarantees his right, because the platform is under the control and supervision of the regulatory bodies concerned with that.
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Is forex trading suitable for beginners?
Forex trading needs experience before entering this market, as it involves some risk of losing invested capital, but everyone can start learning smoothly and enter the forex trading market safely.
The best way to start trading forex is to choose a licensed broker, and through this broker to open a demo trading account and start reviewing the educational materials published by the broker, as licensed companies always work to support continuing education in the field of forex and stock trading.
Upon obtaining the necessary experience, it is possible to move smoothly to trading with real money, and to benefit from the leverage feature that strengthens the ability to buy in the foreign exchange market and contracts for difference.
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Forex trading in Saudi Arabia
The Kingdom of Saudi Arabia is considered one of the largest Arab countries hosting professional investors and Forex traders. Despite the emphasis placed by local banks and local authorities on Forex trading, there is still an opportunity to enter this market through licensed companies.
The best way to enter the forex trading market from Saudi Arabia is to choose a company licensed or in the UAE or licensed internationally and provides deposit and withdrawal services from within the Kingdom smoothly.
The investor can fully guarantee the right, by adopting platforms licensed by local bodies such as ADGM in Abu Dhabi, and DFSA in Dubai, as these bodies are considered one of the few local bodies that license forex trading in the region.