What is currency trading

Most researchers attribute that the principles and foundations of the money and currency trading market go back to the Babylonians, as they knew how to exchange among themselves since ancient times. The Babylonian merchants used to exchange their goods among themselves.

What is meant by currency trading is the trading of foreign currencies specifically, and it is within what is known as the stock exchange, or a market extending to all countries of the world, and is known internationally as an economic term with the word (Forex), in which many participants exchange currencies, such as international banks, and also such as financial markets, and some individual traders. As well as some international institutions, it is the largest global financial market.

Thanks to the increasing development of means of communication, and thus the creation and spread of technology, all of this facilitated the spread of currency trading, in a special market in it, where it is possible to buy, sell and trade via the computer and the Internet.

In this market, or stock exchange, thousands of millions of currencies or dollars are bought and sold every second, and the daily trading volume of currencies is estimated at thirty thousand billion US dollars, and currency trading is seen as bringing more profits than stock market trading. Buying and selling, i.e. trading, is done in the basic currencies, which are:

The US dollar, the European euro, the British pound, the Japanese yen, the Canadian dollar, and the Australian dollar. It is known as dual currency, meaning the exchange of one currency for another currency of equal value, such as the value of the US dollar against the value of another currency.

This market was the biggest reason for America's economic crisis at the end of the last century, due to the lack of government participation and support for this market, and also due to this market losing its main center, which led to its spread and expansion in all countries of the world, and its lack of discipline.

Arabs have a noticeable presence in the global stock market, as a study showed that more than seventy thousand Jordanian people trade approximately seven million US dollars in foreign currencies daily.

Despite the ease of trading in this market, as it can be followed by phone and the Internet with the banks of the world, and despite the desire of most Gulf youth to trade and exchange currencies, due to the weakness of the economic media, and the lack of follow-up of currency activities, the public is still far removed from this market.

It remains to mention that the market closes its activity for two consecutive days a week, on Saturday and Sunday, and at 21 GMT on Sunday of each week, the currency market begins its activity again, continuing for 24 continuous hours. Those wishing to trade in the Forex market are required to be over the age of 18, and to own computers, the Internet, and a Forex account.