Basic Principles of Forex
Forex (Foreign Exchange) refers to the trading of foreign currencies. In this market, different currencies are traded against each other. It is the largest and most liquid financial market in the world.
Key Features of Forex:High Liquidity: The trading volume is extremely high.
24-Hour Access: Operates from Monday to Friday.
Leverage: Allows trading with capital that is several times larger than the initial investment.- Common Forex Terms
Pip: The smallest price movement unit of a currency pair.
Lot: The unit of measurement for trade volume.
Spread: The difference between the Bid (buy) and Ask (sell) prices.
Margin: The collateral required to open a trade.
Leverage: The ratio of borrowed funds to actual investment. MT5 Trading Platform
The MetaTrader 5 (MT5) platform is one of the most popular and powerful trading platforms developed by MetaQuotes Software.
Features of MT5:Multi-Asset Trading: Supports Forex, stocks, CFDs, and cryptocurrencies.
Various Order Types: Market Orders, Pending Orders, etc.
Advanced Charts: Different chart types with technical analysis tools.
Technical Indicators and Tools: Over 80 indicators and tools.
Programmability: Allows the use of trading algorithms and robots.MT5 Trading Platform
The MetaTrader 5 (MT5) platform is one of the most popular and powerful trading platforms developed by MetaQuotes Software.
Features of MT5:Multi-Asset Trading: Supports Forex, stocks, CFDs, and cryptocurrencies.
Various Order Types: Market Orders, Pending Orders, etc.
Advanced Charts: Different chart types with technical analysis tools.
Technical Indicators and Tools: Over 80 indicators and tools.
Programmability: Allows the use of trading algorithms and robots.Analysis Tools
Technical AnalysisPrice Charts: Line, Candlestick, Bar, etc.
Technical Indicators: Moving Averages, RSI, MACD, etc.
Chart Patterns: Triangles, Head and Shoulders, Double Tops, etc.
Fundamental AnalysisEconomic News: Economic reports, interest rates, GDP.
Political and Social Events: Elections, wars, sanctions, etc.- Economic Calendar
An economic calendar is a crucial tool in Forex trading, containing information and schedules for the release of important economic reports and events. This tool helps traders anticipate potential market impacts of these events. - Indices and Charts
Market Indices: Dow Jones, S&P 500, FTSE 100, etc.
Price Charts: Analyzing price trends using various charts.
Drawing Tools: Trend lines, Fibonacci, channels, etc. - Types of Accounts
Standard Account: For regular traders.
Micro Account: For beginners trading with smaller volumes.
VIP Account: For professional traders with special conditions.
Demo Account: For risk-free practice with virtual money. Currency Pairs
Currency pairs are divided into:Major Pairs: EUR/USD, GBP/USD, USD/JPY, etc.
Minor Pairs: EUR/GBP, EUR/AUD, etc.
Exotic Pairs: USD/TRY, USD/BRL, etc.- Contracts for Difference (CFD)
CFD is a derivative instrument that allows traders to speculate on price movements of various assets such as stocks, commodities, indices, and cryptocurrencies without owning them. - Commodities and Indices
Commodities: Gold, silver, oil, natural gas, etc.
Market Indices: Stock indices (Dow Jones, Nikkei 225) and economic indices (Consumer Price Index). News and Its Impact on the Market
Economic and political news can have significant impacts on the Forex market. Events like interest rate changes, employment reports, sanctions, and elections can cause substantial market volatility. Traders must stay updated with the latest news and analysis to make better trading decisions.
Forex News Sources
To get reliable news and analysis in the forex market, you can use several reputable sources:
- Bloomberg
One of the largest and most respected financial news sources, providing comprehensive and up-to-date news and analysis - Reuters
Another global news source, offering extensive coverage of financial and economic markets. - CNBC
A 24-hour network that covers economic and financial news with detailed analyses and special reports. - Financial Times
A highly respected financial newspaper offering deep and comprehensive news and analysis about financial markets. - Investing.com
Provides a wide range of tools and resources for technical and fundamental analysis, along with up-to-date news and analysis. - ForexFactory
A reputable source for news and analysis, featuring a comprehensive economic calendar and user-generated analysis. - DailyFX
Owned by IG Group, this site offers various news, analysis, and educational resources about the forex market. - FXStreet
A reliable source for news and analysis in the forex market, offering a variety of analytical tools. - MarketWatch
Covers economic and financial news with detailed market analysis. - TradingView
Besides powerful analytical tools, TradingView has a news section that provides relevant financial and market news. - Yahoo Finance
Another trusted financial news source that offers news, analysis, and a variety of analytical tools.
Using these sources can help you stay informed about the latest market developments and make better trading decisions.