What is Forex? How to Trade Currencies and Profit from Forex? Simple Explanation

[00:02] Instagram, or on the WhatsApp group for the trading course are asking the same question: What does trading mean? What does Forex mean? Why do we buy when the price goes up? Why do we sell? Why does the price go up in the first place? And

[00:15] who controls the market? You'll see all of this explained in this video in a very detailed and simple way. Peace be upon you. This is your brother, Ahmed Al-Abadi, and this channel specializes in making money online.

[00:27] If you're interested in working and making money online, please subscribe, and I promise you'll benefit. First, let's understand what Forex is. It's a network of buyers and sellers who

[00:39] exchange currencies between them. This is the way companies, central banks, and individuals—you and I—exchange one currency for another. Now, another question: Where is Forex located, and

[00:53] another. Now, another question: Where is Forex located, and how is this process managed? The Forex market is managed how is this process managed? The Forex market is managed through a global network of banks distributed across four through a global network of banks distributed across four Forex trading centers in different time zones:

[01:06] Forex trading centers in different time zones: New York, London, Sydney, and Tokyo. For those who don't know, New York is America, London is Britain, Sydney is Australia, and Tokyo is Japan. Now, let's talk about the Tokyo is Japan. Now, let's talk about the Euro versus the Dollar exchange rate. Okay, Euro. In exchange for

[01:22] dollars, we'll deal with this currency pair. If you sell, let's say you sell the Euro/Dollar. If you If you sell, let's say you sell the Euro/Dollar. If you sell, do you sell Euros or Dollars? And

[01:34] if you buy, do you buy Euros or Dollars? Now you'll understand. First, keep in mind which currency comes first. The base currency is the base currency, and the quote currency is the quote currency.

[01:47] So, if you sell, you sell Euros because they are the base currency, and you receive Dollars in return. base currency, and you receive Dollars in return. And if you buy, you buy Euros and sell Dollars. Let me give you an example to make it clear. I have one Dollar, and

[02:05] I have one Dollar, and you, the viewer, have one Euro. Okay, the value of your one you, the viewer, have one Euro. Okay, the value of your one Euro is equal to Euro is equal to my one Dollar. So, at the moment, the Dollar

[02:17] I have is one Dollar, and you have your one Euro. Their value is equal; one Dollar equals one Euro. Okay, and I see on the news today that the dollar is going to rise. What will I do? I'll give you my one Dollar and take your Euro.

[02:29] the news today that the dollar is going to rise. What will I do? I'll give you my one Dollar and take your Euro. one Dollar. So, I'll give you my Dollar and take your one Euro. Here, I expect the dollar to

[02:45] rise according to the data and the market. For example, five dollars for one euro. The euro will rise, and one euro will be worth five dollars. When it reaches that point, I'll sell it and get my five dollars back.

[02:58] euro will be worth five dollars. When it reaches that point, I'll sell it and get my five dollars back. Now I have one euro, and you have one dollar. I expected it to rise, and when it does, it will be worth five dollars, so I'll sell my I expected it to rise, and when it does, it will be worth five dollars, so I'll sell my

[03:13] one dollar. It's very easy. So, based on this, do I dollar. It's very easy. So, based on this, do I need to have dollars, euros, pounds, sterling, and so on? Because you know there are different currency pairs, and you can trade all of them.

[03:31] Do you need to have all these currencies in your general account to trade? The answer is no. All you general account to trade? The answer is no. All you need is one currency in your trading account, most likely dollars. Then you can analyze any currency pair you like. It's not just any currency pair;

[03:47] any currency pair you like is fine. Okay, and you can trade and make profits. Guys, before I continue, the number of likes you're giving the channel is very low. If you like us, we should continue. Give us a like. If you don't like us, we should close the channel. This helps with spreading the word. Let's continue with the video. Now let's talk about

[04:04] helps with spreading the word. Let's continue with the video. Now let's talk about why the price on the chart is rising or falling, what this means, and who actually controls these things. Trading is a struggle between these things. Trading is a struggle between buyers and sellers, a struggle between them over a

[04:20] buyers and sellers, a struggle between them over a specific currency pair. For example, the sellers sell the EUR/USD pair. If the sellers sell this pair, the chart will go sellers sell this pair, the chart will go down. Then the buyers buy the

[04:34] EUR/USD, and the chart will go up. And so on. The market is all about buying and selling; there's no third option. So, who is buying and selling? You know the trading value: five trillion dollars a day

[04:47] trading value: five trillion dollars a day in Forex—a terrifying number. Those who exchange currencies in Forex are: 43% commercial banks, 30% companies,

[05:00] 43% commercial banks, 30% companies, 17% various other companies, 8% central banks, and only 2% individuals— individuals— that is, you, me, and all the traders in the

[05:13] that is, you, me, and all the traders in the world. We only make up 2% of world. We only make up 2% of Forex trading. So, those who control the Forex trading. So, those who control the chart movement and the rise and fall in Forex are

[05:25] commercial banks, investment companies, and the others we mentioned. Now, mentioned. Now, what you need to do is, if you see a currency pair with a certain number of buyers... If there are more sellers than buyers, meaning the chart is

[05:39] rising, join them and buy to profit. The join them and buy to profit. The same applies if the number of sellers exceeds the buyers on a currency pair; join them and sell. This is forex trading in its simplest form.

[05:57] If you check the description, you'll find a link to our forex course, "Learn Forex from Beginner to Professional." We explain the basics of trading in detail, how to trade, how to profit,

[06:11] and how to avoid losses – literally from zero to professional. We've also kept the price symbolic, which is part of our assistance to you. That's the end of this short video. I

[06:27] videos on the channel about how to trade, analyze, and so on. I noticed that and so on. I noticed that

[06:50] understand the previous video better understand what forex is. What is Forex? This is Forex explained simply. Don't forget to subscribe, like, and turn on notifications so you don't miss any like, and turn on notifications so you don't miss any new videos.