Explained for beginner: Forward Swap

A forward swap is a type of financial agreement in which two parties agree to exchange cash flows at a specified future date. The cash flows are based on a set rate or floating rate that is agreed upon at the time of the agreement. The goal of a forward swap is typically to manage interest rate risk or to benefit from expected changes in interest rates.

Explained for beginner: Forex Broker

A Forex broker is a company that provides traders with access to a platform that allows them to buy and sell foreign currencies. Forex brokers earn a profit by charging traders a spread (the difference between the bid and ask price of a currency) or by charging a commission for each transaction.

Explained for beginner: Minor pairs and Cross pairs in Forex

Minor forex pairs refer to currency pairs that are not as heavily traded as the major pairs. These pairs typically have lower trading volumes and wider bid-ask spreads, which can make them more challenging for traders to navigate. Some examples of minor pairs include:

Explained for beginner: Major Pairs in Forex

The foreign exchange market, also known as the forex market, is a decentralized market where currencies from different countries are traded. The major currencies in the forex market are the U.S. dollar (USD), the European Union's euro (EUR), the Japanese yen (JPY), the British pound (GBP), the Swiss franc (CHF), the Canadian dollar (CAD), and the Australian dollar (AUD). These currencies are considered major because they are the most heavily traded currencies in the world and are considered to have the most stable economies.

Explained for beginner: 9 Famous Forex Traders

These traders are known for their successful trades, market insights and strategies, and contributions to the field of forex trading.

Explained for beginner: Types of Forex Trading Account

Forex brokers offer a variety of trading accounts to cater to different types of traders and their unique needs. For example, a standard account may be ideal for an experienced trader with a larger amount of capital, while a mini or micro account may be more suitable for a new trader with a smaller amount of capital. Similarly, an Islamic account would be suitable for traders who follow Islamic religious laws, and a demo account would be suitable for traders who want to practice trading before using real money.

Why Beginners Fail in Forex Trading?

The Forex market is known for its accessibility and round-the-clock trading opportunities, which attracts many traders looking to grow their wealth by buying and selling different currencies. While it may seem easy to start trading in the Forex market by finding a reputable online broker, depositing funds, and making your first trade, the reality is that many beginners fail in their efforts. In fact, statistics show that up to 95% of novice traders are unable to achieve success in the FX market. Here we will explore the main reasons why beginners struggle in the Forex market and discuss the common problems that prevent amateur traders from achieving their goals.

Explained for beginners: main types of forex trader

There are several different types of forex traders, but some of the most common include:

Scalpers: Scalpers aim to make a small profit by taking advantage of small price movements in the market. They typically hold positions for a very short period of time, only a few seconds or minutes. They use high leverage and high trading frequency to make many trades in a short period of time in order to capture small profits. Scalping requires a high level of discipline and focus, as well as the ability to make quick decisions. Scalpers are typically best suited for traders who are comfortable with a high level of risk, as the short-term nature of the trades can lead to rapid losses if the market moves against them.

Explained for beginners: what determine the currency’s value?

The main determinants of a currency's value include interest rates, economic growth and stability, political stability, and inflation. Other factors such as trade balances and intervention by central banks can also impact a currency's value. The relative strength of other currencies and global market sentiment can also play a role in determining a currency's value. Additional factors that can impact a currency's value include government debt levels, balance of payments, and investor sentiment.

Explained for Beginners: types of orders in Forex trading

In the foreign exchange market, an "order" refers to the way in which a trader initiates or closes a trade. There are a variety of order types available in the forex market, which can vary depending on the broker chosen by the trader. However, there are some basic order types that are widely offered by most brokers. In this article, we will examine some of the most used order types in the forex market.

Explained for Beginners: trader and forex trader

A trader is a person who buys and sells financial instruments, such as stocks, bonds, currencies, commodities, or derivatives, with the goal of making a profit. Traders can work for financial institutions, such as banks or brokerage firms, or they can be independent and trade for their own account.

Explained for Beginners: forex trading hours and sessions

Forex (foreign exchange) markets are open 24 hours a day, five days a week, except for holidays. This is because currency trading does not occur on weekends and most national holidays.

Explained for Beginners: fixed exchange rate in Forex

A fixed exchange rate is a type of exchange rate regime in which a country's currency is pegged to the value of another currency or to a basket of currencies. This means that the value of the country's currency is fixed and not allowed to fluctuate freely in the foreign exchange market. In this system, the central bank of the country is responsible for maintaining the fixed exchange rate by buying or selling its own currency in the foreign exchange market as needed.

Explained for beginners: Market Sentiment

Market sentiment refers to the overall attitude or feeling of investors towards a particular financial market or asset. It is a measure of the general tendency or bias of investors towards buying or selling an asset or market.

Explained for Beginners: Spreads in Forex

In the foreign exchange (forex) market, the term "spread" refers to the difference between the bid and ask prices of a currency pair. The bid price is the price at which a trader can sell a currency, while the ask price is the price at which a trader can buy a currency. The spread, therefore, is the difference between these two prices.