What Is Forex Trading | What Is Forex Market
Subscribe. To my free, Forex. Education. YouTube. Channel. Also. Press Bell icon, so, you never miss, any new, video. Update. Welcome. Forex. Traders, this. Is Muhammad, Nazim certified. Elliott, Wave analyst. In, this video, tutorial you will learn what. Is, forex. Trading. Before. I start. I must tell you the reason, of creating. This Forex, educational. Video, I, have. Seen many, forex, educational. Videos, which. Only talk about how to make money in forex. Trading or Futures, Trading or, options. Trading. But, first traders. Must, know what, exactly, is forex. Trading. In. My judgment, forex. Traders, must have at least the, basic knowledge, that, how forex, trading, actually. Works, before. They actually start, playing with. Real, money. The. Word forex. Stands. For for an exchange there are different names to say all right but, they all means the same thing, such. As forex, market, rolling. Spot forex, forex. Trading. Concentrating, market, forex, FX. Or just, FX, market. Each. Country. In the world, prints, specific, currency notes which. They, use, to buy or sell products. On a national, and international, level. Now. In forex, market, participants. Buy sell, and exchange, currencies. For the purpose, of buying and selling assets. And goods. You. Could visit. Our physical. Money exchange. Dealership. To, buy sell. Or exchange and. In currency. In. Forex. Market. There, is no central. Location, present. Instead. Money. Is traded. Through. A network, of, banks, importers. And exporters. International. Dealers. Individual. Traders. Hedge funds and forex, brokers. Different. Type of businesses. Use, the forex, market, when, they, are buying services. Or products. From other countries. For. Instance. Let's, say our United, States of America. Firm, wants. To buy a motorcycle, Indian. From. The United Kingdom, the. Motorcycle. Indian, is transferred. From the UK, to the United, States of America. And the. USA company, has to convert, US dollars, to British, pounds, to pay for the product, which. In this case is a motorcycle. Engine. For. The sake of payment, the USA, firm uses, forex, market, to convert US dollars, to pounds. At current. Foreign, exchange, rate, which. Is also known as money, exchange. Rate. How. The, profit, is made in forex, market. Traders. Investors and. Speculators, would. Attempt. To sell different currencies, that they. Think will. Decrease. In value and, buy, currencies. They, think, will increase, in value. In. Sport. Forex, market. Currencies. Are traded in, pairs however. Forex, trading is different, from a stock market, because, currency. Valuation. Is relative, to other currencies and, that, is why the, price is given in relation. To a second, currency. For. Example. Gbp/usd. Sapir, which. Means great, british pound versus. United, States dollar. With. The help of internet, a currency trader, could. Buy, or, sell, a currency in, few, seconds. Time. In. Order to conduct our, currency. Trading, transaction. There. Are many online, forex. Brokers. Available. What. Is a, Forex. Broker, a, Forex. Broker is, a company. Which. Provides, currency. Traders, with access. To a forex, trading platform or. Forex. Trading terminal. The. Online, currency trading software. Allows. Forex. Traders, to buy and, sell, foreign. Currencies. In pairs. Conceive. Trading, broker, also, known as a, retail, Forex, broker, handles. A very, small, portion of trading. Volume. Of the. Overall. Foreign. Exchange. Market. Currency. Traders, use online forex. Brokers, to access, 24-hour. Currency. Market. It. Is a good. Idea. To, briefly, talk, about the. Three, main. Types, of, forex, trading markets. In. Sport. Forex, trading you, mainly buy, and, sell, currency. Pairs at market. Price and you. Can hold the, trade, open. You. Could also buy, and sell sport, gold vs. US dollar and sports. Silver, vs. US dollar. In. Currency. Futures. Trading. You, buy and sell, contracts. With an expiration. Date. Set. By, different. Trading, exchanges. You. Can trade currencies. Energies. Financials. Grains. Disease meets metals. And softs in. Currency. Options. Trading, you buy call, option. Assets, at an agreed, price on. Or, before, a particular date, known. As, expiration. Date, or you. Can sell put, option, assets. At an agreed, price on or, before a particular, date, known. As, expiration. Date the. Expiration. Date is, set, by different. Trading exchanges. Just. A side, note for, those who are Muslims. Only, sparked. Forex, trading is allowed in Islam, with, a swap, for a llama, count, so. All Muslims, must only open, and trade with, a swap free, forex. Trading account. Now. You, may be wondering who. Controls, the forex, market, as, mentioned. Before there. Is no central. Location. Instead. Money. Is traded. Through, a network of, central. Bank's, importers. And exporters. Currency. Clearing, agents, hedge, funds individual.
Traders, And forex, brokers. However. State. Bank or central. Bank of all, countries, play. An important. Role in, the, foreign, exchange, market. For. Example. Central. Bank of the United States of, America, try, to, control, the money supply. Interest. Rate inflation, rate. And often, have official. Or unofficial. Target. Rates for. The US dollar they, can use their, often substantial. Foreign, exchange, reserves, to, stabilize, the market. Forex, regulation. And who regulates, the forex, market. Forex. Regulation. Is good, for, currency, trading, market, and you, must only do business deals, with. A regulated. Forex. Broker you. Want. To make show that. Your money is safe with. A Forex, broker if. You face any forex. Trading issues. At the, time of. Trading. With the Forex broker then. You can file an online, complaint, with, a regulatory, body, to, investigate. On your, behalf. People. Trading, for its market from all over world. And, because. Of Forex. Decentralized. Nature. In. Every country there's, usually, a regulatory, body, present. A. Forex. Regulatory. Body gives, license. To, brokerage. Firms, and money. Exchange, dealers, to, conduct, foreign, exchange. Business in. Currency. Market. Below. Are few examples, of for executory bodies, with. Contra, name and their website, addresses. What. Effects. The price of a currency pure. Forex, is a true global, marketplace. With. Buyers and sellers, from all corners, of the globe. Participating. In trillions of dollars of trades, each day. There. Are many. Important. Elements. That contribute, to, a change, in, currency. Exchange, rate, of any, country. Here. Is a list of fundamental. Evens. Natural. Disasters. Such as earthquake. And hurricane. Gross. Domestic product. GDP. Numbers. Unemployment. Rate, import. And export numbers. Political. Stability. Interest. Rate decisions. Inflation. Rate, consumer. Price index, CPI. Producer. Price index PPI. Purchasing. Managers, index PMI. Now. We have learned some, important, things about forex. Market, let, me now provide, you more details, about forex. Trading. How it actually works, my. Focus, will be sport. Forex, trading. How. To open. An online. Sport. Forex, trading account. There. Are two main types of, forex, trading accounts. Live. Forex. Trading account. Demonstration. Forex. Trading account. Demonstration. Forex, trading account, is also, known as demo. Forex, trading account, or virtual. Money forex, trading account. Live. Forex. Trading account, is also known as real, forex. Trading account, or real money forex. Trading account. We. Are now, going, to do practical. Work and, we. Will learn the, following. How. To find, a regulated, forex. Broker. How. To download, and, install. Online. Forex. Trading terminal. Software. How. To open, an, online. Demo, forex. Trading account. You. Will learn how to open, a buy, trade, in forex. Market. You. Will learn how to place, a pending. Buy stop, order. You. Will learn how to place, our pending. Buy limit, order. You. Will learn how, to place, a sell trade in forex. Market. You. Will learn how to place, a pending, sell, stop order in.
Forex. Market. You. Will learn how to place a pending, sell limit, order. Once. The trade is open, you need to control risk, so, you will learn how to place a stop. Loss. You. Will also learn how to place, a protective. Trailing, stop to lock and profit. You. Will learn how to place a take, profit level, in, case. Forex. Market, does not move. In the favor of your trade, direction. Then, you may want to close the trade manually. Instead. Of waiting for the price action to actually hit, your, stop-loss or, take. Profit, level so, you will learn how to manually, exit. A Forex. Trade I. Will. Be using, material. For trading, terminal, software. By. Meta, codes Software, Corporation. So. Let's get started. How. To find, a, regulated. Forex. Broker. Visit. Ready. Forex.com. Next. Click, on forex. Brokers. Next. You will see a list, of, online. Forex. Brokers. For. Example, let me click on FX. Ile you. See this Forex, broker, is online, since. Year, 2006. And you could see rest of their details, such, as payment. Options. Forex. Trading, platform name. Regulated. By. Customer. Support available in, which languages. Support. Methods, they. Also offer, free, Slovak, account and they also allow, mobile. Trading. Now. Click, on their website link. So. This is how you, find a regulated. Forex. Broker, and there. Are number. Of forex. Brokers. Listed, on ready. Forex.com. Website. You. May be interested. To check out ecn. Forex, brokers. Metatrader4. Only, false brokers. Few, live in UK, or USA, then you can check these Forex, broker links. How. To download, and. Install. Online. Forex. Trading terminal. From, a forex, brokers, website. Before, you start doing, forex. Trading it is mandatory, to. First. Download. And install. Online. Forex. Trading, terminal. Software. From. The forex, brokers, website. Just. A side note for, those traders. Who want, to open, a live forex, trading account, need. To click over here and then, you need to fill an online. Account, opening, form next. FX flailing, dot-com, will ask you to upload and, submit your, scanned, documents. Such, as copy, of your passport or, national, identity, card and proof, of address such. As your bank account statement. Which shows your home address. Every. Forex, broker. Always. Ask. Documents. For, account. Verification. Before, allows, our Forex, trader to start trading with real, money for. More details, you can check out their website, and, terms. Go. To platform. Next. Click. On download. Empty. For now. I am using Microsoft. Windows. Operating system. Click. On download. Empty, for. Save. File, and. It. Will take few seconds. Now. Open, file, click. On run. Here. Is the e EULA, and user, license. Agreement click. Next. Now. Just, wait for, the software, to complete, the, installation, process. Click. On finish. How. To open, an, online. Demonstration. Forex. Trading account. Now. We, are going to open FX. Seal demonstration. Forex, trading account, so. You may need to select it if this. Option is. Click, Next, we. Are going to open a new demo account click. Next. Now. This, window, is asking, to input, my personal. Details, let me just fill. All of these input. Fields. Next. Checkmark I agreed to subscribe. To your newsletters. Click. Next, and, now. Wait. Click. On finish. Bottom. Right, hand side corner. You. Will see connection. Status, right. Now it says no, connection. Once, it connects, to the metatrader4. Server. Computer. Then, we, will see kilobytes. Over, here. Click. On trade tab and you. See right. Now I, have a five thousand. US dollar. Virtual. Money trading, account, on. The. Top of the title bar you could also see the Forex account number, and the.
Trading, Server, address. Which is FX EO dash, demo. -, demo account. So. It means if I open a buy or a sell trade, the order opens, at FX. Cleaning.com. Demonstration. Matter, fader for server, and it, does not execute, the. Trades, in forex. Market. I'm. Going to customize, my. Charts, because, I always, like to customize, my charts, and I'm going to close. Some unnecessary, windows. As well so. Click on file new chart, I'm going to open a chart. Of team, PUSD, currency, here. Right. Now this chart looks pretty. Ugly in my judgement, so, I'm going to customize the. Chart and. Background. Layout, color scheme, it's. Right click switch. Off grid right. Click again go to properties, under the. Common tab I'm, going to. Mark show, period, separators. And this. Shows me, basically, the start of the day and the. End of, the day there. Are 24. Individual. Candlesticks. Present. Inside. 1 hour timeframe. Let. Me switch over to candlesticks. The. Chart looks, good, but I need more, customisation. So just right click go, to properties. Black. On white looks. Much better clearly. Visible candles. Right-click, again go, to properties. For. Beer. Candle. I'm going to use a red color for, bold candle, I'm going to use a green color. I'm. Going to switch over to a 5 minutes, time for, him because I, am entrusted, to do. Short-term. Trading. So. This is how you open an online, demo. Forex. Trading account. How. To open, a, buy, trade, in, forex. Market. Let. Me teach you how to open a, buy, trade, in forex, market, this. Right click go to trading, a new, order. Now. This is the volume, right. Now the, lot size is one standard, lot, if. You want you can reduce or increase the, large size depending, upon your trading, account. Balance. I will. Talk more about lot. Sizes. And few, minutes, time just, for the sake of example I'm. Just going to leave it one, standard. Lot, next. Part is to place a stop loss and take profit level, which I will talk later so. I want, to open a by trade type is. Instant. Execution, so. If you want to open a by trade just, click on the Buy button and, it, will allows you to open a buy in a fast moving, market. You may need to enable. Maximum. Deviation, from. Quoted, price. You could select maybe up to two. Pips three. Or four or five or ten that's up to you I like. To use two, pips, in. A fast moving market, it may not going to work we, want to buy at the market so, what you see is what, you get, in other words one point, 2947, or one point 2948, once. I hit a Buy button I will get this price. Now, sometimes. Market. Moves fast and sometimes market. Moves slow, to. Make it easy for new traders, just click on enable maximum. Deviation from. Quoted, price and select, two pips so it, means once, I hit the Buy button if market. Price changes, up to two pips I will, still get a fill, if. It moves away more, than two, pips then I won't get, a fill so, let me click on by. The. Brokerage firm. Executed. My buy, order. In the forex, market, but as I have already told you it's a virtual money trading account so, profit and loss isn't real, if you want to print the ticket. Number which, is right over here 3 7 3 5 8 - 3 - then you could I, am. Just going to click on OK because you could also see the ticket number or order, number right. Over here as well so, just click on OK, so. This is how you open a buy droid, in forex, market. How. To place, our pending. Buy, stop, order. Now. Let, me teach you how to place, a pending, buy, stop, order but. First let me tell you the reason, behind. Placing. A pending, buy stop, order let. Me zoom out, everyday, there. Is one high, of the day and one low of the day, draw. A trend line, let. Me also fix this trend line. This. Is the high of the day and this is the low of the day now, we, want to, open our. By trade. Once market, breaks above. The, high of the day so. I want to open a by trade but I have, a trading criteria. I want, the, market, to come at my, terms. I don't. Want to face the market, at market terms. So, I want, the market, to first move, up and then secondly, breaks, above, the eye of the day which, is currently, 1.29. 74. Then, I, want, to go into the market, with my buy, entry. Instead. Of just sitting in front of computer, screen, and waiting. And waiting I just, place, a buy stop pending. Orders, just, right click go to trading go, to new order now. The price, of this high, of, the, day is 1.29. 74. Go. To type. Place.
Buy. Stuff and type, in. 1.29. 74. And this. Will place a buy. Stop pending. Order just click on place button. So. I just placed a buy stop pending. Order you can see inside the trade. Tab by stop, this. Is the lot. Size the, trading, symbol at, which. Price I want to get into, the market, in this case 1.29. 74. I haven't. Placed stop, loss and take profit level. And this, is the price that you see right now 1.29. 46. So, now I'm going to just wait for, the market to move. Up and fill, my buy stop pending, order if, market. Is really going to move up then fine the brokerage, firm will, automatically. Execute. The. Pending, order even, if I lose is my internet. Connection. Still, this, order is now parked, at FX. Clearing. Metatrader4. Server. So. If I loses my internet, connection, the brokerage firm will. Execute, my, pending. Order. How. To place, our pending. By limit. Order. Let's. Say you, want get into, the market, but, you don't want to do a breakout, trading. You. Want to do swing, trading, maybe. Market, is going to drop a little bit more and then, price. Is going to rise up in deviously, currency, pair in such. Our market, scenario. You. May want to place a pending, order at this. Price, level which in this case is 1 point 29 29 so, just right click go to trading go. To new order, and. Click on pending, order X elect buy. Limit one. Point 29. 29, and, click. On place. Now. The trading, condition, is if. Market. Is going to drop all the, way down to one point 29, 29 then. Brokerage. Firm will execute, my, buy entry. And this is known as buy, limit. How. To open, a sell. Trade in, forex. Market. Let, me teach you how to open a cell trade at the market, this. Right click go to trading. New. Order and once. I hit the sell button the brokerage firm will, open a sell trade and market. Click, on sell. Sell. Is open and right, now you can see the sell entry inside, the trade tab if. Accidentally. You closes, the terminal, window. You can always reopen. It by going over. To view and then. Terminal. So. This is how you open a sell trade in forex, market. How. To place, our pending. Sell, stop, order. Let's. Say you are a breakout, trader, and want. To take a sell trade but, first, you, want to wait for the market to brakes below. The. Most, recent. Swing, low, which. In this case is low of the day over, here, so. Far low of the day is one point. 29:21, so, just right click go, to trading. New. Order, one, point. 29:21. Go, to, pending. Sell. Stop. One. Point, 29:21, and hit, the place button. So. We have just placed a sell stop the. Trading. Criteria. Is if market. Is really, going down then, it should breaks below, prominent. Swing, low which in this case is one point twenty nine twenty, one if. Market, isn't going, to drop if market, goes up then. The. Brokerage firm is, not going to execute my, pending. Sell. Stop, order, so. This is how you place a pending.
Sell Stop order. How. To place, our pending. Sell limit, order. Let's. Say you are a swing trader, and we. Got this nice decline, in market. Now you're waiting for a pullback or, the price to move up a little bit and then, you expect the market to drop, again, so. You want to get in but you do not want to get in now using. The instant, execution sell, entry you want to sell at one, point. 2958, in. Such, a market, scenario, you, use a pending. Sell limit order, at one point, 29:58. This. Right click go to trading new. Order, go depending, order sell. Limit next, type in the entry, price, 1.20, 958 and click, on place. Now. The brokerage firm has, placed, a sell limit ending. Order, the. Trading criteria. Is market. Should go up and then starts, to decline. Now. Let's, say price, isn't. Going to move up and it just keep going down and down and down then obviously we, will not get a fill in such. Case we may need to adjust our sell limit sell. Limit is written over here as well at the left-hand side of the screen you. May want to drag it down a little close now. Once, the market which, is near your pending. Order, you could see a green color over, here so, this is how you place a pending. Sell limit, order. How. To place, a stop. Loss to control, risk, in, forex. Trading. Now. Let, me open a cell trade. Let's. Go to trading, you, order, and. Click on sell. Now. Once, the. Trade is open, you need to control, risk. So, what, we are going to do is we're going to place a stop. Loss so. I would, like to place a stop loss at one. Point twenty nine seventy, four which is a prominent, swing. High, so. Let me teach you how to place a stop loss just right click go to. Modify and. Type. In. 1.29. Seventy, four click. On modify. By. Placing, a stop loss I'm telling. My Forex, broker, that I am only willing to risk, twenty-nine. Pimps. I don't. Want to lose more, than 29 pips, if market. Moves. Against. My, sell trade. I, took. A sell, trade in deviously. Currency, pair few, minutes, ago and, right. Now market, is going down in, the, favor of my sell. Trade, you. Can see the sell, trade over, here here's my sell entry 1.29, 44, and I, have also placed a stop loss at one point twenty nine seventy four now, once, we are inside, the market. And market starts, moving, in the favor of the trade then, we want to control, the risk as much as we can a good, crunchy, trader always, think about how, to control. The, loss. How. To place, our protective. Trailing, stop. So. What, we are going to do is we're, going to place our protective. Trailing stop clock in few, pips profit in. This way, we will remove the, stop loss, completely. And we. Will make sure that now. We, are not going to lose this, trade no, matter which way market, is going to move. So. Just right click over, here go. To modify. So. To castle entry at one point 2944, so, what we're going to do is we're going to move, this, stop-loss, down, below. Oversell. Entry, so. I'm going to place, my stop-loss. Below. 1.29, 44. I would like to place my stop loss at 1.29. 42. In this, way I'm locking in, two. Pips, profit and. I. Have completely. Removed. The, stop-loss. Same. Stop-loss. Is going to act as, a, protective. Trailing stop the, worst-case, scenario is market, is going to fire up and it will hit my, protective. Trailing stop and I will get out of a market with, two pips profit which, is still fine at least, I am NOT going to lose money. How. To place, our take, profit level. Let. Me teach you how to place, a take, profit level. The reason behind placing. A take profit level. Is we. Want to exit. This trade at a predetermined. Take. Profit, level as a human, being I cannot, sit and watch, this, trade, for 24, hours, time, so. What, I'm going to do is I'm just going, to place my take profit level, so, let's say I place, my take, profit level. At one. Point twenty nine twenty, four just. Right click over here go to modify one, point twenty nine twenty. Four. This means I'm telling, my Forex, broker, that if, market. Reaches one point twenty nine twenty four then, automatically. Close, the, trade. So. This is how you place, a take. Profit level. Now. Even, if I loses. My internet. Connection. I don't. Need to worry about, because. All of these, orders, the, stop loss which. Is now acting. As a protective. Trailing stop and they, take profit level all these, orders are now, pending orders, and they, are parked. Ad the, brokerage, server. How. To manually. Exit, our Forex. Trade. In. Case, forex. Market. Does not move, in, the favor of your trade direction. Then you may want to close the trade, manually. Instead. Of waiting. For, the price action to, actually hit your stop-loss, or, take. Profit level so, you, will learn how to manually. Exit. A Forex. Trade all. You need to do is you just right-click over.
Here And then. Select closed, order. And, this. Will close the trade, at, the, market. End, of. Part. 1 continue. By watching, part, 2.