Forex:
The word Forex (FOREX) is derived from the term Foreign Exchange Market and means foreign exchange of foreign currencies. Forex is a platform in which traders buy and sell currencies and the main and most important activity in this market is to convert currencies to each other. This exchange is used to buy and sell goods, services of companies and governments, travel expenses of travelers, investment of individuals and enterprises. Forex large financial institutions, banks, multinational corporations, traders, insurance companies, export and import companies, speculators and individuals, various currencies such as US dollar, euro, pound, yen and … They make a deal. The basis of this transaction is based on buying and selling currency pairs. The Forex market does not have a physical base and all traders trade their preferred currencies online. Although OTC is a market with no physical location, the main trading centers are located in London, New York and Tokyo.
Broker:
By providing an international platform, Broker has created a bridge between buyers and sellers of national currencies around the world to buy and sell their financial assets. It is important to know that the broker’s activity is not limited to the Forex market alone and may cover other valuable commodities such as stocks, energy, metals and digital currencies.
In order to start your business in the Forex market, you need to choose a broker that has the right conditions and provides financial services to Iranians. Creating an account and registering with a Forex broker is a very simple procedure, and with a few steps, your registration will be done.
There are many reputable international brokers, but due to the sanctions, only a limited number of Iranians cooperate with Iranians.
Brokers support your trading by providing you with a variety of trading platforms and currency pairs. Keep in mind that choosing a reputable broker is a very important and challenging task, as the protection of asset security and trading quality depends on the broker you choose.
Steps to start trading in the Forex market:
- Training
- Choice Broker
- Open Trading Account
- Practice with Demo Account
- Capital Determination
- Start Trading and Account Management
(Fundamental Analysis) :
Every day each country publishes news or reports about its economic events that have a direct impact on the relative value of a currency. Therefore, it can be said that fundamental analysis of Forex is an analytical method for examining the social, economic and political conditions of countries where traders can analyze the current economic conditions of the countries and predict the future currency movement in the future.
In general, it can be said that economic factors play an important role in fundamental analysis of Forex and as a result, traders should pay special attention to them. In fact, the more favorable a country’s economy is, the more investors are willing to buy and trade the country’s currency. The most important and important factors affecting the price Currency pairs in the Forex market, including the following:
- GDP or GDP
- Unemployment Rate
- Retail Price Index
- Consumer Price Index or CPI
- Producer Price Index
- Interest Rate
For example, a significant increase in the unemployment rate in the country indicates that the country is not in good economic condition and is associated with problems. In such cases, the currency of the country in question will drop and as a result investment in the country’s currency will not be the right decision.
Technical Analysis in Forex
Technical analysis in Forex uses historical price data and trading volume to predict the direction of future price movements. This type of analysis relies on the idea that price patterns and technical indicators can represent repeatable patterns in the market.
Some of the most important concepts and tools used in Forex technical analysis are:
1. *Price charts*: Various charts such as candlestick and line charts are used to display currency prices over time.
2. *Indicators*: Technical indicators such as Moving Average, Volume, Profitability and Price Oscillators are used.
*Price Patterns*: Different patterns such as triangles, amortizations, plugs and elliott waves are used to identify price trends and market changes.
4. *Support and Resistance Levels* Technical analysis involves identifying levels that the market is mutually showing resistance or support to price movements .
5. *Volume of Trades*: The amount of trading volume over time can indicate the confirmation or denial of price patterns.
Technical analysis in Forex can help traders make better decisions about entering or exiting their trades and implementing more successful strategies.
Choose a reliable and suitable broker to trade:
In order to choose a reliable Forex broker, you need to consider the following:
1. *Regulatory Licenses and Licenses*: Make sure the broker has the necessary permissions from the accredited regulatory bodies.
2. *History and Validity* Check how long the broker has been in the industry and how much credit and trust it has from traders and other clients.
3. *Trading conditions*: Make sure that the broker offers trading conditions that match your trading needs and styles, including trading volume, spread, and account limits.
4. *Trading platform*: Check which trading platforms the broker supports and whether they have enough functionality for your needs.
5. *Customer Support*: It is important that the broker has strong and effective customer support that answers your questions and problems during your trading activity.
6. *Additional Features*: Some brokers offer additional features such as training, market news, daily analytics and analytical tools that can be an advantage for you.
7. *Liquidity and security*: Make sure that the broker uses modern technology to secure and properly maintain your information and funds.
8. *Transaction Speed*: Deposit and withdrawal rate of deposits and withdrawals received from brokers
usually have the minimum possible time on withdrawals.
With that in mind, you can choose a broker that fits your needs and preferences.
Forex Market Risks:
The forex market comes with a variety of risks to consider. Some of these risks include:
1. *Exchange Rate Risk*: Sudden changes in exchange rates can cause a great deal of harm to traders.
2. *Spread rate risk*: Spread is the difference between the buy price and the sell price of a currency, and this difference may cause a trader’s earnings to fall.
3. *News Risk*: Important economic and political announcements can lead to sudden changes in the Forex market that can cause a huge loss for traders.
4. *Account Cancellation Risk*: In the event of an illegal operation or breach of the broker’s rules, the trader’s account may be frozen, and the funds deposited by the trader may be compromised.
5. *leverage risk*: Using leverage in Forex trading, if used incorrectly, can lead to increased risk and greater profit and loss.
6. *Technical risk*: Technical errors such as internet glitches or technical problems on the trading platform can result in loss of transactions or personal data.
To manage these risks, traders must use risk management strategies, use appropriate leverage, correct market analysis and adequate training.
Trading Strategy :
A trading strategy is a plan or procedure chosen by traders to make trades in the Forex market. These strategies are based on technical, fundamental or combination analyses of both and are used to achieve a specific goal, such as making a profit or managing risk. Some popular trading strategies include:
1. Trend Following: This strategy is based on identifying and following the price trends in the market. In this strategy, traders try to trade in the direction of trending the market.
2. Swing Trading: In this strategy, traders try to make profit from medium-term price changes and seek to get the right entry and exit times.
3. Reversal: In this strategy, traders seek to identify the turning points in the market that indicate the completion or change of price trends.
4. News Trading: Traders in this strategy trade based on important economic and political information and events.
5. Scalping: In this strategy, traders seek to make a profit from small price changes over short periods of time.
Every trader can choose a trading strategy that suits their style and preferences and improve it with experience and accurate market analysis.
Who is trader:
A trader is a person who works in financial markets such as Forex, Stocks, Stocks and other markets. Traders buy and sell currencies, stocks, commodities and other financial instruments in order to make a profit. They usually use various analyses such as technical analysis, fundamental analysis and market events to make decisions about their trades. Traders may use different methods and strategies for Manage risk and earn profits and make trades on the market depending on their personal style and preferences.
Trading sessions:
Trading sessions in the Forex market refer to specific times when trading activity is higher. These segments are divided into the following categories:
*Asian Session*: This session starts with the opening of the market in Asian countries such as Japan, Australia and New Zealand. This session usually has lower trading volume and lower price movements.
2. *European Session*: The forex market is more active when the European session begins with the opening of the market in European countries such as the UK, Germany, and France. This session has the highest trading volume and important price movements can occur in this session.
3. *US Session*: The forex market experiences more activity when the US session begins with the opening of the market in American countries such as the United States, Canada, and Mexico. This session also has a significant trading volume and important moves in the market often occur in this session.
Based on personal preferences, traders choose the right time to enter into trades, which may be consistent with different session hours.
Currency pairs:
Currency pair refers to two currencies that are compared in a forex transaction . These two currencies are placed as one against the other in a transaction. For example, in the currency pair EUR/USD, the euro is the first currency and USD is the second currency. The currency pair represents the exchange rate between two currencies, in other words, the number of units of the second currency that are used for one currency The first currency is required. When buying a currency pair, the trader hopes to increase the exchange rate of that currency pair and, if sold, acts in the hope of lowering the exchange rate of that pair.
Leverage or leverage:
Leverage : In forex trading, leverage refers to the concept of using additional investment or the possibility of raising the main capital to make trades. In other words, leverage refers to the ability of traders to trade with more capital than their actual capital. Leverage is expressed in relative terms, for example a leverage of 100: 1 This means that a trader can trade at a value of 100 times his real capital.
The use of leverage can allow traders to make more profit in Forex trading, but it can also carry more risks. This means that the more leverage is used, the higher the risk of trading and the risk of loss increases. For this reason, risk management and the balanced use of leverage are vital in trading.
Concept lat:
In the Forex market, price movements are measured in a unit called “pips”. Each pip shows small changes in the exchange rate. But a pip can be used accurately or as a larger unit called a “lot”. For example, in some currency pairs, one pip is equivalent to 10 lots.
For example, if the exchange rate of a currency pair changes from 1.2500 to 1.2501, this means a pip increase (or 10 lots). These minor changes that typically occur in exchange rates can be of great importance to traders, especially in strategies that depend on small price changes.
Pip concept:
pip stands for “Percentage in Point” and refers to the size of the smallest price change in a currency pair in the Forex market. Most currency pairs show up to four decimal places. For example, if the price of a currency pair goes from 1.2000 to 1.2001, that means a pip increase .
A pip has a different value per currency pair. For many currency pairs, a pip is equal to 0.0001 of the real value of the currency. But for some other pairs, such as currency pairs that contain a local currency, a pip is equal to 0.01 of the real value of the currency.
For example, in the EUR/USD pair, if the price goes from 1.2000 to 1.2001, this means a pip increase . But in USD/JPY, if the price goes from 109.50 to 109.51, it still means a pip increase.
Spreads:
Spread is the difference between the bid price and the ask price of a pair of currencies in the Forex market. In simple terms, spread is the amount of fee a trader has to pay to complete a trade on the Forex market.
Bid is the price at which a trader can sell the currency.
– Ask is the price at which a trader can buy the currency.
For example, if the buy price of a EUR/USD pair is 1.2000 and the sell price is 1.2002, the spread is equal to 2 pips (1.2002 – 1.2000).
Spreads can be variable or fixed and may be different for each currency pair and each broker. This is important because spreads have a direct impact on the cost and profit of trading, so choosing a broker with the right spread can be important for traders.
Skeleton :
Scalp refers to a short-term fast trade in the Forex market. This strategy is usually used by traders to take advantage of small, immediate changes in prices and make profit in short periods of time. Traders in this strategy seek to take profit from small price changes in short periods such as seconds or minutes. For example, a A trader may enter or exit a trade when the price moves up and down quickly to make a profit from small changes in price. This strategy requires a precise understanding of the market, the fastest possible execution and careful risk management.
Signal:
Forex signals refer to signals or information that give traders information about the time and price appropriate to enter or exit a trade. This information may come from technical analysis, fundamental analysis or market events. Traders use these signals to They decide to use their trades. Signals may come from a variety of sources, such as automated systems, technical analysis or fundamental analysis, or even from other types of traders and indicators.
Stop Loss and Profit Stop:
Take Profit and Stop Loss are two types of common orders in forex trading that help traders manage their risk and profit:
1. Take Profit (TP ) is the point at which a trader determines that he wants to close his or her trade to profit. In other words, this is the price level at which the trader decides to close the trade and take the profit.
2. Stop Loss (SL ) is the point at which a trader determines to close his position if the price moves in the reverse direction. This is to protect the trader’s capital if the market moves in a direction that is contrary to its imagination.
The use of the profit and loss limit is very important for managing the risk and profit of trading, and traders should use these two carefully and according to the market conditions.
Balance:
In Forex trading, the balance refers to the total balance of a trader’s trading account. In other words, the balance represents the amount of real money in the trader’s account, including the initial capital and profit or losses up to that trading moment. The balance is determined by all trades the trader has done so far.
For example, if a trader starts with an initial investment of $10,000 and then makes a profit of $2,000 on several new trades, his balance will increase to $12,000. If he loses $3,000 in the next few trades, his balance of account to 9 $1,000 will be reduced.
The balance is usually displayed when entering a trading account, display output or daily in trades that have been made, and may change during the day or other time periods.
Equity:
Equity) in Forex trading refers to the amount of real money in a trader’s account. This amount includes the initial capital, profits and losses of the trader so far. In other words, equity, represents the total value of the trader’s account.
The main difference between balance and equity is that equity also includes the profits and losses of the trader so far, while the balance only shows the total balance of the account regardless of profit or loss. In other words, equity, shows the balance along with the profits and losses of the current trading of the trader.
Equity can change over time and may increase or decrease as a result of consecutive trades and changes in the market . This amount is usually displayed live on the trading platform and is important for risk management and making trading decisions.
Margin:
Margin in forex trading refers to the amount of money required to have an existing trader to perform a trade. This amount is a guarantee for the broker and represents the level of investment of the trader.
1. Initial Margin is the amount required to enter a trade and is placed as a capital or guarantee for the broker. This amount varies based on the type of account and the currency pair that is traded.
2. Maintenance Margin is the minimum amount of money that must remain in the account to allow open trades. If the prevailing margin reaches a certain level, the broker may notify the trader to complete their capital. Otherwise, trades may be closed automatically.
Margin plays an important role in managing risk and allowing traders to trade more or larger but it must be carefully managed as it may increase risk and loss.
Free Margin:
You may refer to the concept of “free margin” in forex trading.
Margin is the amount of the trader’s capital available for new trades after all the margins of the current positions have been deducted. In simple terms, Frey Margin is equal to equity minus the margin required for open trades.
For example, if the equity of a trader’s account is $10,000 and the margin required for a trade is $1,000, the margin would be $9,000. This amount represents the capital that the trader can use for new trades.
Managing Margin Curve is very important because misusing it can lead to further financial risks and losses. Through proper risk management and careful margin use, traders can achieve greater success in Forex trading.
Margin Rating:
By “Margin Level”, you may mean the current margin to the equity of a trader’s account, expressed as a percentage. Margin level represents the amount that a trader’s account has for other trades.
The level margin is equal to (Equity / Used Margin) × 100.
Equity: The amount of real money in the account.
– Used Margin: The amount of margin used to open current positions.
Margin level is very important because once the margin level reaches a certain level, the broker usually tells the trader that they must complete their capital or close trades to avoid entering risky positions. The right margin means to keep it at a level where the risk of trading is manageable.
Call Margin:
The concept of “margin call” in forex trading refers to the time when a broker is asked to complete their account capital. This request is generally made when the margin level of a trader’s account is reduced to a certain level that exceeds a certain limit of the margin required to open current positions.
When a margin call occurs, the trader can handle two solutions:
1. Margin Top-up Trader can complete the account capital to reach the desired level and continue trading.
2. Close positions: If the trader cannot complete the account capital, the broker may automatically close some or all of the open positions of the trader to avoid entering risky positions.
Call margin is very important in risk management because it may lead to increased losses and even loss of a trader’s account if not managed properly.
Stop Out Level:
The Stop Out Level in Forex trading refers to a certain margin level where a broker can automatically close open trader positions. This level is usually determined as the minimum allowed margin level that a trader can have in his or her account.
Once the trader’s level margin reaches the stop out level, the broker may automatically close some or all of the trader’s open trades to avoid entering risky positions. This is usually done with the aim of saving capital and preventing further debt from entering a state of debt.
The level stopout value is usually determined by the broker and may vary between brokers. For many brokers, stopouts typically range from 20% to 50% of the margin level, but this may vary depending on the specific circumstances of each broker.
Hedging:
Trading Hedges refers to methods used by traders to manage risk in trading. These methods usually involve taking multiple positions in the market that are mutually mutually in currency pairs or other financial instruments. The purpose of trading hedging is usually to reduce the risk and balance of earnings and risks associated with trading.
An example of trading hedging would involve obtaining a long and long position in a currency pair. For example, a trader may hold a long long position on a currency pair, but at the same time create a short sell position to take advantage of short-term volatility changes in the market. This can help balance market positions and reduce the overall risk of the trader. Help me.
Swap:
Swaps in Forex trading refer to the exchange of interest or reduction between two parties of the trade when the relevant market positions are transferred. This exchange is usually done to maintain the market position for a longer period of time.
A swap usually involves paying or receiving interest as the difference in the exchange rate between the two monetary flows in the transaction. This interest rate is usually determined by the central bank of the respective country and may vary between countries.
The reasons why swaps are used in forex trading are:
1. Difference in interest rates between the two economies.
2. Need to maintain market position for longer time.
3. Risk management and profitability.
Swap may be used as an important factor in trading decisions and risk management in Forex trading.
Bonus:
Bonuses in Forex trading refer to the bonuses that brokers offer to traders. These bonuses are usually offered in the form of monetary amounts or other facilities such as a fee exemption or raising capital. The main purpose of the Bonus is to encourage traders to open their accounts and trade more with the broker.
Bonuses may have certain conditions and restrictions that need to be carefully examined. Some common conditions include:
1. *Trading Volume*: Specific trading volumes may be required to receive a bonus.
2. *Trading Time*: Some bonuses are limited to a limited time and must be made within a certain time.
3. *Risk Conditions*: Bonuses may be covered in certain circumstances related to risk and account management.
Also, it is important that traders carefully review the terms and restrictions associated with it before accepting a bonus, ensuring that they comply with these terms and can meet them.
Copytrade :
Copy Trading is a method in Forex and other financial markets that allows traders to copy others’ trades. In this way, traders can automatically copy others’ trades, without the need for prior experience or knowledge of trading.
This process is usually provided by brokers that offer trading platforms, and traders can choose other traders based on performance, trading history and trading style to copy their trades through the broker’s platform.
The advantages of copytrading include access to skilled traders’ experience, saving time and trying to learn successful trading. However, it should be noted that trading in the financial market always carries risks and past performance does not guarantee future performance. Also, it is important to carefully consider the criteria and conditions associated with copytrade and make reasonable decisions to participate in this activity. He did.
Demo account and rail account:
The Demo account and the Real account are two types of accounts offered by Forex brokers:
1. *Demo Account Demo Account is a demo account that is provided with funds and virtual currency. Traders can trade in real market conditions using a demo account, but without the risk of losing real capital. This account is usually used for training, testing trading strategies and getting to know the trading platform.
2. *Real Account is a real account that is opened with the real capital of the trader and real trades are made using real money. This type of account is used for real business and profitability, and any real profit or loss is created for the trader.
Note that both account types have their advantages and disadvantages, and before choosing either trader should consider their goals and needs and make a decision that matches it.
Slippage:
Slippage refers to the difference between the expected price to enter a trade and the actual execution price. In other words, a slippage occurs when in the position of opening or closing a position the actual price of a trade differs from the expected price of the trader.
Factors such as low liquidity, high volition, market situation and trading volume can cause slippage. This may happen to traders when prices are changing rapidly, especially during the announcement of major news or during market opening.
Slippage can make a difference in trading profits and losses and should be considered in managing traders’ risks and trading strategies.
Pair of major Forex currencies:
Major currency pairs in the Forex market refer to pairs that include the US dollar (USD) and one of the other currencies that have a high value in the global market. These couples are considered to be the most commonly traded pairs in the Forex market and usually have high trading volumes. Some of the most famous major currency pairs are:
1. EUR/USD (Euro/US Dollar)
2. USD/JPY (US Dollar/Japanese Yen)
3. GBP/USD (British Pound/US Dollar)
4. USD/CHF (US Dollar/Swiss Franc)
5. AUD/USD (Australian Dollar/US Dollar)
6. USD/CAD (US Dollar/Canadian Dollar)
7. NZD/USD (New Zealand Dollar/US Dollar)
These couples are the most popular and traded forex couples due to strong economic, commercial and financial connections between countries. Also, these couples have high liquidity and significant price changes, which provides traders with advantages such as flexibility and more trading opportunities.
Backtest:
Backtesting is an important method in financial trading, including in the Forex market, which uses historical data to assess the performance of a trading strategy in past market conditions. This process allows traders to test their strategies based on historical data and evaluate their performance quantitatively and qualitatively.
Benefits of backtesting include:
1. Accurate and explicit evaluation of the performance of trading strategies in past market conditions.
2. Identify the strengths and weaknesses of trading strategies and improve them.
3. Ensure traders know the performance of their strategies in the past and anticipate their future performance.
Although backtesting can help traders make trading decisions, it should be noted that performance in the past does not reflect future performance and market conditions may vary at different times. Therefore, backtesting should be done carefully and with reasonable constraints and assumptions .
Pendding Order:
Pending orders in Forex trading refer to a type of buy or sell order that is not positioned in the market, but allows the trader to make a future trade with specific conditions. These orders allow traders to automatically execute their trades using the specific prices they choose.
The main types of Pendding Order include:
1. Buy Limit is a buy order executed at a price lower than the current market price.
2. Sell Limit is a sell order executed at a price higher than the current market price.
3. Buy Stop is a buy order executed at a price higher than the current market price.
4. Sell Stop is a sell order executed at a price lower than the current market price.
Pendings are used to manage risk, enter transactions with limited decisions ahead and expect confirmation of the desired price level.
Dravidavan:
“Drawdown” refers to the amount of capital loss or profit earned in a trading account. In the world of financial trading، Dragdown represents the sensitivity of capital to sudden changes in the market.
Doordown may be offered in two ways:
1. *absolute dragdon: refers to the direct amount of capital decreased, i.e., the rate of decline from the greatest value of capital.
2. *Relative Draddon*: which refers to the ratio of the percentage of the highest value of the capital. For example, if an account with the highest value is $100,000 and its relative drudatown is 10%, that means the capital is reduced by $10,000 .
The desirability of Draddown is low because it indicates high risk and inability to manage capital. Generally, traders attempt to reduce their drudgery and manage their trades using appropriate risk management strategies to reduce the likelihood of large losses.
Dow Jones Index:
The Dow Jones Industrial Average (Dow Jones Industrial Average) is one of the most popular stock market indexes in the world. It is usually considered a major measure of the performance of the American capital market. The name “Dow” comes from the name of the inventor of the index, Charles Henry Dow.
The Dow Jones consists of 30 major U.S. industrial companies representing various industries such as technology, finance, basic industries, automotive, and energy. The index reflects the changes in the US capital market according to the performance of these companies.
Since the Dow Jones only includes 30 companies and represents only a measure of the US capital market, many analysts use the S&P 500 as the most unique measure of U.S. capital market performance because it includes more than 500 companies and offers a broader representation of the market.
Index:
An index is a measure or indicator that shows the performance of a group of different assets, industries or markets. These are usually created by financial organizations or exchanges to identify changes in the capital market or industry.
Indices can be used to benchmark capital market performance, different industries, countries, geographic regions, or even trading strategies. Some of the most popular indexes include:
1. The S&P 500 index : which includes the 500 largest U.S. companies and is recognized as a major benchmark for U.S. capital market performance.
2. Dow Jones Industrial Average ( USD): Includes 30 major U.S. industrial companies and shows the performance of the U.S. capital market.
3. Nasdaq Composite Index: which includes top technology and information companies and represents the American technology market.
4. FTSE 100 index: which includes the top 100 companies of the London stock market and shows the performance of the UK capital market.
These indicators are the most important metrics used by investors and analysts to examine and analyze the capital market and various industries.
SNP Index:
The S&P 500 is one of the most important and meaningful capital market indicators created by Standard & Poor’s. It includes 500 major and reputable U.S. companies trading on the New York Stock Exchange (NYSE) or the Nasdaq Exchange (NASDAQ).
The S&P 500 is considered a valid measure of the performance of the U.S. stock market. It is commonly used as a major representative of the economic and financial performance of the entire country, and its changes reflect the general trend of the U.S. stock market.
The S&P 500 combines companies from a variety of economic industries such as technology, health, finance, consumption, industry and energy, which is representative of the breadth and diversity of the U.S. economy. The index is adjusted based on the market value of the firms, which means that companies with a larger market value also weigh more in the index.
USD Index:
The dollar index usually means a measure or indicator that shows the performance of the U.S. dollar currency relative to other currencies. It may be calculated directly or obtained by comparing the dollar currency with other currencies.
One of the most important dollar indexes is the US Dollar Index, which measures the world’s largest and most influential currency, the U.S. Dollar, relative to a basket of other currencies such as the euro, Japaneseyen, British pound and Swiss franc. The index is calculated based on the prices of currencies in the Forex market and is usually used as a The Trader uses the performance of the U.S. dollar in the global market.
Factors such as monetary policy, economic and political events, paude rates, economic situation and other economic and financial factors can influence the dollar’s performance in the global market and therefore the dollar index.
Wall Street:
“Wall Street” is a term referring to New York’s central financial and trading district. It is commonly referred to as Wall Street and surrounding areas in Manhattan, which is the hub of many banks, financial institutions, exchanges, investment and trading firms.
Wall Street is known as one of the world’s most famous financial districts and is known as the heart of U.S. finance and global financial markets due to the presence of the New York Stock Exchange (NYSE) and large financial firms such as banks, hedge funds, and trading firms .
Wall Street is the focus of many transactions in stocks, securities, currencies, monetary policy, and other financial products and has a significant impact on the financial and economic markets of the world.
Symbol:
In financial and trading language, a “symbol” or “symbol” refers to a specific code or sign used to identify a financial asset, such as stocks, currencies, gold, and other financial products. These symbols are usually created by exchanges or financial organizations and are assigned to each specific asset a code or symbol.
For example :
1. *Stock symbol*: For every company traded on the stock exchange, there is a unique symbol or symbol . For example, for Apel, its symbol is on the NASDAQ AAPL.
2. *currency symbol*: There is one symbol for each currency pair in the Forex market . For example, EUR/USD or GBP/JPY.
*Symbol of financial products*: For example, the symbol of gold on the New York Stock Exchange is GOLD .
These symbols are important for the ability to quickly identify assets and make transactions accurately and efficiently.
Ask and Willow Price:
Bid and Ask are two basic concepts in financial trading, especially in forex, stock and other financial markets.
1. *Bid is the price that buyers are prepared to pay. In other words, it is the point at which buyers want to buy the desired currency or asset.
2. *Ask is the price at which sellers are ready to sell an asset or currency. This price represents the cost to buy the desired currency or asset.
There is a difference between the price of Willow and Ask, which is usually applied as a transaction fee for traders. This difference is calculated as a profit for the broker or exchange that makes the trade.
In short, Willow and Esc are the two main parties to any financial transaction that play a key role in determining price and making trades.
Risk and Riward:
Risk and Riward are two important concepts in financial and investment transactions that are interrelated:
1. *Risk refers to the degree of uncertainty or probabilities associated with making an investment or financial transaction. In fact, risk represents the probability of losing or dealing with a loss. Factors such as market volatility, uncertainty of price changes, economic and political situation, and the specific characteristics of each investment can affect the risk.
2. *Riward refers to the return or profit expected from an investment or financial transaction. This concept represents an opportunity for an investor to make a profit and improve his financial situation.
Financial markets generally follow the principle that higher-risk transactions are usually associated with higher returns, in other words, dealing with higher risk can lead to higher returns, but at the same time, may lead to loss or loss of capital. Risk management is used as one of the most important strategies in financial transactions to reduce the chances of losing capital.
Bear and Bull Market:
“Bear market” and “bull market” are terms used in the language of financial transactions that refer to market conditions and trends:
1. Bear Market In a bear market, prices typically fall sharply. The term refers to a period when shares, financial markets or the economy as a whole are falling. A bear market is usually accompanied by increased risk, investor disappointment and a decline in public confidence in markets.
2. *Bull market. In contrast, in the bull market, prices typically rise sharply. During this period, the value of stocks and other assets increases constantly. This market is usually accompanied by a high mood and increased confidence in the markets.
These two terms are used as a description of the overall market trend and can be applied to various financial markets such as the stock market, the currency market, and the investment market.
Risk Ferry:
“Risk-free” or “risk-free risk” is a term commonly used in cases where a person or organization earns a profit or benefit from an opportunity without engaging in transaction risks . In other words, the term refers to transactions or opportunities that result in good returns and profits without significantly increasing the risk.
A simple example of risk-free might be in cases where a company has an opportunity to expand its operations in a new market, but this expansion does not come with a lot of financial and operational risks. For example, a company may increase its profitability by increasing production lines or entering new markets without significantly increasing risk.
In financial transactions, risk free may refer to transactions that have a high probability of success, but there is still no risk that has a significant negative impact on returns or investments.
Risk Management:
Risk management is important in trading because every financial transaction has its own risk, even when it seems to be low-risk. In fact, the main purpose of risk management in financial transactions is to reduce the potential loss of capital and maintain the investment. To manage risk in trading, you can consider the following ways:
1. *Stop loss*: Setting a reasonable stop loss that dissuades you from proceeding if the trade goes backwards. This helps to control the amount of the trade and avoids the possibility of losing capital.
2. *Adjust trading volume*: Using the volume of the trade according to your capital and risk level can help you reduce the risk associated with each trade.
3. *Use technical signals*: Using technical analysis and trading signals to identify entry and exit points of trading can help you manage risk.
4. *Variety of Transactions*: Diversification in trading means trading in different markets using different financial instruments. This helps disperse risk and helps to maintain capital.
5. *Forecast and Market Study*: Market study and analysis before entering any trade can help you reduce risk and make more effective decisions.
Commission:
Forex trading commissions are not directly charged as the fee that a broker charges for providing trading services to traders. Instead, brokers often use a commission model called “spread”.
Spreads are the difference between the price of Willow and the ESK price of a currency pair. In simpler terms, spreads are the fees that the trader pays the broker and the broker deducts this fee from the difference in the price of buy and sell currencies. Therefore, the spread is usually considered as a trading fee and is covered by the spread rather than commission directly.
The spread fee is usually calculated as a number of pips or points and can vary between brokers. Choosing a broker that offers a suitable spread can be effective for traders because it reduces the direct trading cost and affects the effect of trading on profit and loss .
Pricing Gap:
“Price gap” is a term in financial transactions that refers to the time interval between two consecutive prices of an asset or currency. In other words, the price gap represents the difference between the recent price of an asset and its previous price in the market.
The concept of price gaps is commonly used in price charts, especially in candlestick and bar charts. These chats can be used as important points in technical analysis of trades and represent important price movements in the market.
For example, if the currency price of an asset rises by 1,200 pips in a given minute and then falls by 500 pips in the next minute, the price gap between the two prices will be 700 pips. This can be used as an important information for traders in technical analysis and trading decisions.
Arbitrage:
Arbitrage refers to the use of price differences between two or more different markets or assets to make risk-free profit in the financial market. The term usually refers to trading techniques used by traders to exploit price differences in the markets.
Arbitrage is usually done as follows:
1. Identify price differences: Traders identify price differences between two or more different markets or assets.
2. Execution of Trades: Using these price differences, traders make long and short trades in different markets to profit from these differences and perform arbitrage.
3. Earn Profit: By closing trades at the right time and taking advantage of price differences, traders earn arbitrage profits.
Arbitrage is usually done very quickly and using complex trading techniques and requires speed and high accuracy. This method is commonly used to reduce risk and make risk-free profit in financial markets.
Compatibility Size:
Counterbalance Size refers to the volume or size of a traded counter in financial markets. This size is specified by an exchange or exchange and represents the number of standard units or the amount of assets traded per exchange.
For example :
– In the futures market, the size counter may refer to the number of standard units of a certain asset. For example, in the stock futures market, each contraction may be equal to 100 shares or units of shares of a company.
– In the Forex market, the size counter usually refers to the number of standard units of a given currency. For example, in Forex futures, each contraction may be equivalent to one lot of currency.
– In other markets such as commodity markets, over-exchange products, etc., the size of the container is determined as a quantity of goods. For example, in the oil futures market, each contraction may be equivalent to 1,000 barrels of oil.
Counterbalance is an important size in trading because determining the correct amount is very important for managing risk and making the right trades.
What is an EA?
The term “expert” in English means “expert” and “expert”. Meta Quote, which was the designer of the MetaTrader 4 and 5 trading software in the Forex market, has provided traders with a functionality that allows them to convert their programs and methods into a program or a robot to automatically implement these methods in the market.
This robot is programmed to run 24 hours a day in the Forex market which has helped traders a lot, to work with EAs you only need to give the robots the values of the rules and regulations for entering and exiting the trade, and leave the relevant decisions to the experts. Of course, you should implement your programs completely in your EA.
