What is currency trading?

currency trading
currency trading or Foreign Exchange is known as Forex, a decentralized global market in which currencies are traded and exchanged around the world according to currency exchange rates. The Forex market is one of the largest and most liquid markets where the average daily exchange rate is 5 Trillion dollar, a very large rate; as all the global stocks combined do not approach this volume, The Forex market facilitates the sale and purchase of currencies around the world, and the mechanism of work to profit by selling the currency in the case of high price , Buy low, and serious currencies Noting that there is a high degree of risk arising from which may lead to significant losses for currency traders exchange transactions.
The currency is of great importance in the lives of individuals around the world; where the individual needs to exchange and transfer from one currency to another for the conduct of various businesses,This can be measured across different positions and businesses, and as such shows the main reason why the exchange market is one of the largest and most liquid financial markets in the world, it is important for individuals to exchange currencies.

History of currency trading

In 1876, the idea of ​​stabilizing the world's currencies began by linking them to the price of gold, and the application of the so-called gold standard began. It was based on the consolidation of all paper currencies with solid gold. The idea was theoretically good; however, it led to stagnation and recession. In practice, leading to the overthrow of this principle, and despite the decline in the price of gold, but was actually canceled this idea at the beginning of World War II; where the European countries did not have enough gold to support the paper currencies that were printed in large quantities for Play Large military woes.
In 1944, a decision was made to set fixed exchange rates and the US dollar was the only currency to be supported by gold. The system was known as Bretton Woods. In 1971, the United States announced that it would not support its currency And thus stopped the exchange of gold against the US dollar, and decided not to link it to the price of gold and ended the Bretton Woods system, and in 1976 the foreign exchange market or foreign exchange market, which resulted from the global acceptance of foreign exchange rates, Starts only m The mid-nineties solutions

Currency Trading Agencies
Some banks can trade billions of dollars a day. Sometimes, currencies are traded on behalf of customers. Some traders also trade currencies for the bank. The private. Individuals: Individuals participate in the foreign exchange market by exchanging money while traveling to another country for any purpose, whether at the airport or at the bank. Companies: Different companies use the foreign exchange market to trade currencies and deal with other companies in different countries, in order to sell or buy goods or provide certain services to other countries. It is worth mentioning that an important part of the activity of the foreign exchange market comes from companies that exchange Currencies to deal with different destinations in other countries.
Investors: Portfolio investment companies require their clients to use the foreign exchange market to facilitate their transactions related to foreign securities. Governments and central banks: The central bank of a given country has an important role in the foreign exchange market, where the reason for the increase or decrease in the value of the currency in the same country may be through trying to control interest rates. Reserves owned by foreign currencies.

Forex Trading Skills

Here are some of the skills one needs to achieve his goals in the Forex market: [4] Full confidence in the ability to achieve goals by following a strategy. Flexibility in Forex trading, adapting to changing circumstances for success in achieving goals. The ability to accept loss if it happens. Dedication to work; so that the individual becomes a professional Forex trader. Be patient while following a specific Forex trading strategy. Focus to stay on the plan and not to deviate from the set track. Ability to organize and walk on positive business habits. Consider the exchange market in a logical and objective way. Realism in dealing with the exchange market, and the tendency of the individual to become rich quickly; so as not to fall into the problems during the currency trade. Stay informed, stay informed, and keep track of market events. Control and not over-volume to avoid some undesirable things.