The desire for foreign currencies or Forex is witnessing increasing activity in the United Arab Emirates, as it constitutes an attractive factor for many investors because of the great profit opportunities it entails. But on the other hand, it may represent a fraudulent trap for new traders or those who have not gained sufficient experience to confront these fraudulent practices. Many individuals find themselves victims of scams and scams. Individuals’ desire to improve their financial situation and achieve quick wealth is often played on, and they are tempted by being generous with false promises. Then the trader soon finds himself falling into a trap. We will mention the things that should be taken into consideration before embarking on trading in the Forex market in an attempt to avoid exposure to fraud. As for those who have already fallen into the trap of fraud, they can choose between several alternatives as an attempt to recover their stolen money.
What is Forex?
The word Forex refers to the foreign exchange market and is an abbreviation for the Foreign Exchange Market. The Forex market is considered the most traded and liquid market due to the large volume of transactions, as trillions of dollars are traded daily. It is not a central market. A global cross-border market. We can look at it as a mechanism by which sellers and buyers of foreign currencies are brought together through various means of communication, where foreign currencies are bought and sold, and the price is determined according to supply and demand, and traders achieve profit through the change in prices. Currency prices are greatly affected by economic and political factors. The Forex market operates around the clock, starting from Monday until the end of Friday. The Forex market includes four main trading sessions: Sydney, Tokyo, London, and New York.
The main players in the Forex market:
The Forex market includes a variety of major players, including central banks, commercial banks, brokerage companies, investment funds, and individuals. This was initially limited to banks and financial institutions. Now, everyone has the ability to access the Forex market and trade easily through brokerage companies.
Concepts related to trading in the Forex market:
(Currency pairs) Currency pairs
Trading takes place in the Forex market in the form of pairs of currencies, one currency against the other. The first currency composing the currency pair is the base currency and the second currency is the counter currency. Such as EUR/USD Euro Dollar GBP/USD British Pound Dollar – USD/JPY Dollar Yen.
(Leverage) Financial leverage
A tool that enables you to trade and open deals with a value greater than the deposited capital, thus maximizing purchasing power and reaping more profits.
(Margin) Margin
Margin is the amount of money needed to open a trading deal and is deducted when the deal is opened.
(Pip) The point
The smallest movement in the price of a currency pair.
(Lot) The contract or lot
It is a measure of the size of a trading transaction and is denominated in a number of units of the base currency. The standard lot size in the Forex market is 100,000 units of the base currency.
(Bulls)
Bulls indicate or symbolize traders who expect prices to rise, meaning that the market is taking an upward trend.
(Bear) Bears
As for the bear, it indicates to traders that prices are expected to decline, which means that the market is taking a downward trend.
Safe trading experience:
If you decide to invest your money in the Forex market, you should be careful and study your steps carefully to have a safe trading experience:
