Lesson 02

What Is Forex Trading

Let's find out about Forex Trading in this chapter little deeply. Lesson for beginners!

Embarking on a Forex Adventure: Exploring the Basics, Tools, and Thrills of Currency Trading

Welcome aboard! Imagine a world where currencies dance to their own tunes, rising and falling, shaping global economies. Today, let’s take a stroll into the fascinating realm of Forex trading. Buckle up as we explore the basics, tools, and the exciting twists and turns of this financial adventure!

Let us start with an example as story. 

You along with some of your friends decided to go on a tour from United states to France. As you know we can’t use United States Dollars you decided exchange those in Euros. 

You exchanged $1000 and obtained Euros 905. The good thing going to happen. One of your generous friend decided to spend the for your tour and he is making you trouble free. Wow! Isn’t it? (I wish I have friends like that) You had a wonderful tour and spent nothing . Came back home with your 905 Euros. 

You are going back to the same exchange center and exchanging back Euros to USD as you can’t use Euros any more in United States. In return you got USD 1022. 

What exactly happened there. The value against the Euro falls due to some circumstances and in just two week you got $22 in profit. 

Now that is how the exchange dealings work. The circumstances giving you the chance to earn what you never expected. 

The tricky part is understanding those circumstances when you invest professionally. 


Currency 101 – Understanding the Dance of Money”

“Ever wondered why one currency’s value shifts against another? It’s like a seesaw, where factors like economic health, political stability, and global events affect the balance. Learning these shifts is the key to unlocking the secrets of Forex.”

It is like getting to know what will happen in the near future in one country.  What good can happen and what not. Isn’t that too much to learn. Trust me! It is fun. You will appear smart with loads of good and bad information. Now you are mentally ready to take the shift. I believe! 

Tools of the Trade – MT4 & MT5 Unveiled”

Metatrader platforms are developed by Metaquotes – a Cyprus based company. In this article we will show you the main differences between MT4 vs MT5.

“Now, imagine MT4 (MetaTrader 4) and MT5 (MetaTrader 5) as your trusty guides in this currency adventure. These are powerful tools, like a compass helping you navigate the Forex world. MT4 is like your reliable starting point, while MT5 offers enhanced features for advanced explorations.”

Plotting Your Journey – Using MT4 and MT5″

“MT4 and MT5 aren’t just any tools; they’re your magic wands in Forex. With their user-friendly interfaces, these platforms offer charts, indicators, and analysis tools. MT4 focuses on Forex trading, while MT5 broadens the scope to include other assets like stocks and commodities.”

Which platform is better? MT4 or MT5?

It depends on the preference of the individual trader. If you are looking for a platform which can offer more symbols and markets, more order types and partial fills, then Metatrader 5 can be a potentially better match. Traders who use EAs to trade on MT4 are going to find the transition more difficult, because they will need to adapt their code for MT5. Therefore sticking with MT4 could be the better option for them.

If you’re interested in learning more about the differences between MT4 and MT5, you can refer to the following resources:

  1. Hantec Markets: This website provides a detailed comparison of MT4 and MT5, including their features, benefits, and drawbacks .
  2. LiteFinance: This website offers a comprehensive guide to MT4 and MT5, including their differences, advantages, and disadvantages .
  3. Forex Education: This website provides an overview of the main differences between MT4 and MT5, including the type of assets they allow you to trade .
  4. Trading Platforms: This website offers a side-by-side comparison of MT4 and MT5, including their features, trading tools, and user interface.

Why we need a MT4 and MT5 for forex

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are both trading platforms for Forex traders. MT4 is the industry standard and offers backward compatibility, making it a reliable choice for brokers who heavily rely on custom indicators and trading tools developed for MT4. On the other hand, MT5 provides advanced features such as market depth, multiple execution types, support for various asset classes, and hedging capabilities.

MT4 is much easier for newer Forex traders. It only supports forex assets and CFDs and has fewer features than MT5. MT5 offers a greater volume of technical indicators, timeframes, and graphics, along with improvements such as an economic calendar. It also offers more markets that traders can trade, including stocks, futures, and options 

Latest Currency News Updates

BYJU's Under ED Scanner For Foreign Exchange Violations Worth Rs 9,362 Crore - Details
BYJU's Under ED Scanner For Foreign Exchange Violations Worth Rs 9,362 Crore - DetailsMSN
Read More
The Enforcement Directorate on Tuesday said it has issued a foreign exchange violation show cause notice of more than Rs 9,300 crore against edtech major BYJU's and its CEO and co-founder Raveendran Bjyu..
What awaits Turkey's economy as its foreign exchange woes ease?
What awaits Turkey's economy as its foreign exchange woes ease?Al Monitor
Read More
Decreasing uncertainty after the presidential and parliamentary elections in May laid the ground for foreign-currency assets held abroad or “under the pillow” to flow into the formal economy. That confidence was increased after Mehmet Simsek, an economist highly regarded among international investors, took the reins of the economy in June...
Botswana Offers Window of Incentives to Foreign Investors
Botswana Offers Window of Incentives to Foreign InvestorseTurboNews
Read More
The Government of Botswana offers a cutting-edge package of fiscal and non-fiscal incentives to attract foreign investments to its tourism industry in the context of the structural reforms it has undertaken to enhance the industry’s value chain and its multiplier effect on other sectors of the economy.

If you really want to learn the basics of global events the decides the currency fluctuations, where one can exactly get the news about that

Key Takeaways

  1. How foreign exchange trading works in a simple world

  2. Understanding the trading factor and the impacting factors are essential for foreign exchange profit and loss calculations

  3. There are two Tools that can enable taking part in trading activities such as MT4 and MT5

  4. MT4 is ideal for beginner

  5. MT5 has a complex form of structure to do trading