How Forex Trading Works?

The main goal of forex (foreign exchange) trading is to simultaneously buy and sell one currency. With daily trading of nearly $7 trillion, it is the world's largest financial market.

What is Forex?

Foreign Exchange is referred to as Forex or FX. The USD, EUR, JPY, and GBP are among the currencies that are exchanged on this international market.

Forex traders do so in order to:

• Profit from adjustments in prices.
• While traveling, exchange money.
• Protect yourself against currency danger.

How Forex trading works? 

Pairs are used in forex trading, such as EURUSD.

It implies :

• You are buying the euro and selling the US dollar when you buy EUR/USD.
• You are selling the euro and buying the US dollar when you sell EUR/USD.

A variety of factors, including inflation, interest rates, news, traders bias influence price fluctuations.

How Currency Price Moves?

Prices are driven by demand and supply. Let’s list the factors affecting demand and supply with their effects :-

Trading and analysing forex pairs 

Let’s say that you are willing to trade EUR/USD, then you must 

✅ Analyse charts of EUR/USD to build a bias.

✅ Check upcoming events relating to euro or usd.

When you can trade forex pairs in Dubai?

Forex market operates 24 hours a day from Monday to Friday. The forex market moves through 4 major sessions.

Which is the best session for forex trading?

As a forex trader, it is very important to understand that all of the sessions are not equally active. It is often recommended to trade in sessions having high trading volume.
So, let’s breakdown active trading volumes across Sessions

Note :- The chart below indicates active volume across Sessions

How beginners can start forex trading?

• Open your forex trading account with a broker.
• Learn to read charts and perform technical analysis on tradingview.
• Practice, Practice and Practice with a demo account.