Trading as a new type of digital commerce – Grape Baladi

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Editorial announcement

Man has always practiced trade, which is one of the most important activities throughout time.

With the passage of ages, trade witnessed many developments that were in line with human requirements. Trade is an activity to generate income and meet different needs, but for some people it is a hobby or a means of wealth and luxury.

Currently, the Internet has become available all over the world, even in developing countries, and by taking advantage of it, digital trade has been invented.

What are the first stages that we go through when doing forex trading?

For those outside the field of digital economy, the concept of trading may seem terrifying at first glance, given all those numbers that appear to confuse new traders, so practitioners of this trade always advise beginners coming to the world of digital economy in general, and the forex market in particular, to slow down and avoid rushing into the field. Make profits.

It has been observed that the cash-strapped are the first people to put themselves in the mouth of the cannon, unaware of the potential risks of an ill-conceived trade, but only looking on the bright side of the money earned.

But on the other hand, money can go to waste if a person loses a valuable deal. For this, the first step is to allocate time to learn the basics of trading, and then gradually raise the ceiling of knowledge.

After that, you should start with small amounts of money traded in, and avoid investing large amounts. If these steps are applied correctly, the percentage of loss will be low and ineffective.

What are the forex trading terms you should know

  • Interpretation of currency pairs: It is knowing how much a particular currency is worth when converted into a different currency. This allows choosing the currencies that are dealt with.
  • The base currency: It is the one that we find to the left of the currency pair, and it is the one that the forex trader buys and then sells. Like the EUR relative to EUR/USD.
  • Margin: It is the amount required to exist before any deal is concluded, which is liberated when this deal ends.
  • Trading platforms: are the means through which transactions can be made via the Internet. These platforms also enable people to follow the developments of the supply and demand market.
  • Leverage: It allows to increase a person’s investment capacity in trading, as the forex market gives traders the opportunity to invest a small amount of money in order to sweep more markets, but it must be known that this leverage may also cause huge losses to people.
  • Contract/Lot Size: Forex has special units of measurement, such as lots, which indicate the size of a particular transaction. There are several different lot sizes, including mini lots and micro lots.
  • Contracts for Difference: CFD trading is a contract between a seller and a buyer to settle the difference in the value of a financial asset or a financial instrument.

What are the currency pairs traded on forex

An individual can only start trading operations after realizing the currency pairs on the forex platform, after which he must study each pair separately, while analyzing their most important points. This analysis is at the heart of the forex principle.

In short, we can say that there are three groups of currency pairs traded through Forex: the first group is called the major pairs, the second group is known as the secondary pairs, and the last group is the exotic pairs.

The US dollar is a currency found in all pairs of the first cohort, it can be just a quote currency or it can be a base currency.

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