What is Forex trading?
Forex, also known as foreign exchange and foreign exchange market, is where currencies are traded. Currencies are important to people around the world.
To conduct a foreign trade business, you need currencies to exchange. This is the largest and most liquid market in the world. It measures various markets, even the stock trading system, around a normal exchange rate.
It is a global decentralized marketplace for exchanging forms of money. This market determines distance trading. The main members of this market are the larger universal banks. There are a wide variety of buyers and several types of sellers in this market.
The Forex trading market is unique because of the following characteristics:
Huge exchange volume, which speaks to the largest class of resources on the planet, suggesting high liquidity; Continuous duty, 24 hours a day, except weekends;
• Geographic dispersion;
• Continuous work, 24 hours a day, except for weekends;
• Various factors that affect the exchange rate.
• Low profit margin compared to other markets.
• Using leverage to increase profit and loss margins.
The Forex trading market is called an ideal market closet of perfect competition.
With such a huge number of experts integral to Forex trading, there are several risks associated with it that must be considered.
You need to make sure that their internet connection and computer are always running very smoothly. We all know that things happen, servers go down and our PCs freeze or shut down depending on the current activity. This can affect transactions, so be aware that things can happen during trading.
There are also risk-free accounts that allow you to practice without losing your own money.
The Forex trading market is always open 24 hours a day, 7 days a week. It doesn’t matter your time, location, internet connection and computer, you can log in anytime to relax me.
It is scalable. With this feature, the trader can control and limit the risk depending on his account.
Leverage is one of the huge advantages of the Forex trading market, where brokers allow you to trade up to 2% of the total contract size compared to the stock market. A small account can be used to trade large amounts, where the winnings can be quite large, and only a small amount of capital is needed to obtain it.
Data and software are provided free of charge. you don’t have to pay, all you have to do is log in to your broker’s website. Download the app, charts will be displayed as soon as you log in.
There are no commissions; well, you pay spread costs that depend on how much you trade.
As an individual, you face a lot of competition, particularly from traders trained by funds associated with huge amounts of money, and large amounts of dollars are invested in programming and equipment.
There is no centralized exchange house, unlike the stock market. A broker acts as an exchange which makes it a market maker.
You have no idea about the impact of capital and how to calculate leverage, then you will have huge losses.
Good traders start trading with only 2% initial capital and no more than.
The Forex trading market moves differently throughout the day, there are only a few peak hours that are worth your time trading.
Margin trading also has a high level of risk that a smart trader should avoid. Always assess your capital and the amount of risk you are willing to take when trading.
Never enter Forex trading with money you cannot afford to lose.
It is likewise your responsibility to see all the dangers that accompany Forex trading before you go on your first exchange.
Leverage is one of the biggest risks in Forex trading. This can lead to a huge profit if you win, but on the other hand, a crushing loss if you lose.
Forex trading in Islam.
According to Islamic law, it is difficult to give a definitive answer to the question. Trading money under specific conditions is halal, as shown by an Islamic expert, but there is a certain question under the right c conditions.
This implies that any transaction involving an element of interest is completely prohibited according to Islam. Forex trading is not permitted in Islam and is very broadly defined. A retail Forex trader mirrored the market by paying or charging enthusiasm for any monetary overlap between the two parts whose positions remain open in the medium term. It seems that this is permissible only as long as it (the exchange) is beneficial. Prophet Muhammad (peace be upon him) had in mind the exchange of various types of goods. This would be done between the two parties with the understanding that this is a natural aspect of trade.
Most Forex professionals responded to the demonstration of the power and weight of Islamic dealers by creating an “Islamic Forex Broker” and offering “Forex Muslim Accounts” that work without intrigue payments.
However, regular Forex trading offered by Forex brokers, with overnight interest charges or fees, can clear the hurdle of riba.
Online trading requires online currency exchangers for cryptocurrency trading. Many online exchanges contribute by providing strong security, fast transactions and stability. Some of them are Binance, modified and newly introduced. Exchange. These platforms deal in the trading of various cryptocurrencies.