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.
Currencies are needed for exchange to carry out foreign trade operations. This is the largest and most liquid market in the world. It captures different markets to the extent of even a stock trading system with a normal exchange estimate of approx.
It is a worldwide decentralized market for the exchange of monetary forms. This market decides the distance trade. The main members in this market are the larger universal banks. In this market there is a wide range of multiple types of buyers and sellers.
The Forex market is unique due to the following characteristics:
Huge volume of exchange, addressing the largest class of resources on the planet leading to high liquidity;. Continuous task, 24 hours a day with the exception of weekends;
• Geographic dispersion;
• Continuous work, 24 hours a day except on weekends;
• Various factors affecting the exchange rate;
• Low profit margins compared to other markets;
• Use of leverage to increase profit and loss margins.
The Forex trading market is called the market closet of the ideal of perfect competition.
With such a huge number of experts inalienable to Forex exchange, there are several dangers associated with it that must be considered.
You need to make sure that their internet connection and computer is running very smoothly at all times. We all know that things happen, servers go down and our computers freeze or shut down depending on the current activities. This may affect transactions, so keep in mind that things can happen during a trade.
There are also risk-free accounts that allow you to practice without losing your own money.
The Forex market is always on 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 give me a break from trading.
It is scalable. With this feature, the trader can control and limit the risk depending on his account.
Leverage is one huge advantage of the Forex trading market, where brokers allow you to trade up to 2% of the total contract size against the stock market. You can use a small account to trade large sizes where the gains can be quite large and you only need small capitals to get it.
Data and software are free; you don’t have to pay, all you have to do is log in to your broker’s website. Download the software, charts will be displayed as soon as you login.
No commissions; so you pay in spread costs that depend on how much you trade.
As an individual, you face a lot of competition, especially from foundations that are about huge money with prepared marketers and many dollars of resources invested in programming and equipment.
There is no centralized exchange, unlike the stock market. A broker acts like a stock exchange which makes it a market maker.
You have no idea about capital exposure and how to calculate leverage, then you will experience huge losses.
Good traders enter trading with only 2% of initial capital and no more than.
The forex market moves differently throughout the day, there are only a few peak hours that are worth your trading time.
Margin trading also comes with 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 an amount you cannot afford to lose.
Likewise, it is your commitment to spot every one of the dangers that accompany Forex trading before you go before your first exchange.
Leverage is one of the biggest risks in Forex trading. This could bring a big profit if you are winning, but on the other hand, a huge loss if you are losing.
Forex trading in Islam.
According to Islamic law, it is difficult to give a definitive answer to the question. Trading money under certain conditions is halal as indicated by an Islamic specialist, however there is a question under the correct conditions.
This implies that any type of business that involves an element of interest is completely forbidden under Islam. Forex trading is not allowed in Islam and is defined very broadly. A retail forex trader mirrored the market by paying or charging the enthusiasm between the two parts of any money match whose position remains open in the medium term. It seems that it is only allowed as long as (the exchange) is hand to hand. Prophet Muhammad (peace be upon him) had in mind the exchange of different types of goods. It would be made between the two parties, recognizing that it is a natural aspect of trade.
Most Forex experts reacted to show the power and weight of Islamic dealers by creating an “Islamic Forex broker” and offering “Muslim Forex accounts” that work without war of intrigue.
However, “regular” Forex trading offered by Forex brokers, with overnight interest or fee payments, could remove the fish hurdle.
Online trading requires an online cryptocurrency exchange. Many online exchangers make it easy by providing strong security, fast transactions and stability. Some of them are Binance, Changelly and newly introduced Nexchange. These platforms deal in trading different cryptocurrencies.