The abbreviation of the words ‘Foreign Exchange’ in English Forexrefers to markets that show the value of the currencies of countries against each other. To the markets where all currencies are traded against each other, bought and sold ‘Forex The market is called.
When do Forex markets open?
Forex markets are open to transactions for 5 days and 24 hours on weekdays. The transactions that start after 24:00 on Sunday night continue until 24:00 on Friday night. According to the Turkish time, the transactions start at 01:00 on Sunday night and continue until 01:00 on Friday night.
Who can make transactions in the Forex market?
Forex operations; It is open to everyone from states to central banks, from companies to traders, from large investors to small investors. Each investor and legal entity may be a party to these transactions.
How to determine Forex markets?
In the Forex market, the prices of foreign exchange pairs consist of the balance of supply and demand in free market conditions. Various factors, especially macroeconomic data and interest rates in countries, affect prices.
Which financial products can be invested with Forex?
Within the scope of Forex transactions, investment in the following products can be made:
- Foreign exchange parities
- Precious metals
- Energy commodities
- Agricultural commodities
- Industrial commodities
- Stock market indices
- Foreign stocks
What are the most traded currency pairs in the Forex market?
- In foreign exchange parities; EUR/USD, GBP/USD, USD/JPY,
- In precious metals; Gold (XAU/USD) and Silver (XAG/USD),
- Energy commodities; Brent Petrol (Ukoıl), USA Crude Oil (Usoil) and Natural Gas (Natgas),
- In agricultural commodities; Wheat (Wheat) Coffee (Coffee), Cocoa (Cocoa) and Egypt (Corn),
- In industrial commodities; Copper (copper),
- In indices; Dow Jones (Dow30), SP 500 Index (SPX500), NASDAQ (NAS100), Germany DAX Index (Ger40), UK FTSE Index (UK100) and Dollar Index (DXY) are among the highest FX products with the highest volume volume.
Factors affecting price changes in Forex
Since the value of the currency of the two countries in Forex transactions is measured;
Macroeconomic indicators such as growth, inflation, employment data and policy interest rates of both countries are decisive in the formation of the parity value.
‘Swap’ and ‘Carry Trade’ transactions due to interest rates are also decisive in the FX market. FX transactions are carried out in the form of ‘borrowing’ or sales in the low currency and ‘purchase’ process in the high currency.
Movements in Forex markets can also be affected by areas other than economy. These are mainly due to political, military and social movements.
The main basic terms used in Forex and their meanings
Pip: The smallest unit price movement of the foreign exchange pairs traded in Forex markets is expressed as “Pip .. Exchange pairs are usually priced according to the 4 decimal step. 1 Pip is in the fourth place of the decimal step. It is usually valued as 0.0001. The smallest price change increase in many Forex parities is 1 Pip. In other words, the movements in exchange rates are measured by ‘pipes’.
For example; Price movements in EUR/USD parity continue as 1,0950-1,0951. The last 1 point increases in the last place are defined as “1 Pip ..
SPREAD: Forex markets do not have a single price. A purchase price also has a sale price. The difference between the purchase and sale price offered by brokerage houses or brokers is defined as “SPREAD .. Since there is often not a commission in FX transactions, intermediary institutions make as much profits as the “spread” range in foreign exchange couples in the transactions performed through themselves.
For example; In the EUR/USD parity, the purchase and sale range get 0950 – 1,0955. Here the spread range is 5 pips.
Lot: In Forex markets, transactions are carried out with units defined as “Lot .. Lot determines 1 share in stock transactions. The lot in FX operations is divided into various species and refers to different size. Lots in Forex are the unit of measurement. You will determine how many units of money you will make transactions with lots. It is widely processed with standard lot (100,000 currency) and mini lot (10,000 currency).
How to make Forex transactions?
You can do two transactions in the FX market.
1-The process (long/long position): You earn money as the parity or commodity rises.
2-SELLING PROCESS (Short/Short Position): You will earn earnings as the parity or commodity process is declined.
Technical and Basic Analysis Methods in Forex
Since there is a country risk in Forex markets; As a basic analysis, all macroeconomic and political events of that country should be taken into consideration. To give a current example;
In 2025, the tariff practices of the new administration in the United States increased inflationary risks and increased the US central bank’s expectation of “braking on interest cuts”. Thus, the dollar gains value against other currencies. The European Central Bank moves on the path of interest rate cut in 2025. This situation brings with it pricing in favor of the dollar in the EUR/USD parity. ”
As a technical analysis, all formations and indicators on the graphs can be used by using the past price movements and inferences for the future can be made.
Forex’s advantages and opportunities for investors
FX markets are open 5 days 24 hours. Investors can benefit from the possible opportunities that may occur in the markets at any time.
In Forex markets, ‘leverage’ transactions are performed in quantities above the transaction collateral. Officially 1/10 leverage is applied in Turkey. A profitability rate of 1 %is reflected in investors as 10 %earnings.
The leverage also allows investors to open a large position with small capital.
In FX operations, only the rise but also the decrease -oriented process can be performed. Thus, money can be made from decreases.
The Forex market is the most liquid financial market in the world. With minimum price margins, installed transactions can be done easily and quickly.
The fact that FX markets are a large and organized market reduces the risk of price manipulation.
Forex markets usually do not have a transaction commission. Low ‘SPREAD’ ranges between purchase and sale prices will cost the transaction cost. Thus, FX markets; It offers a low -cost trade.
To be careful to be a successful forex investor
Regular and tight market tracking: Figures in Forex markets; It is influenced by the economic data described during the day, political, geopolitical and social events. For this reason, tight follow -up is required.
FX Training and Analysis Support: Which economic data, in which pairs, how does it cause movements? Well known. It is important to devote time to FX training and to receive analysis support from the intermediary institution.
Managing investor psychology: In the moving market like FX; Psychology management should be provided with strategies such as ‘damage’, ‘average drop’ and ‘collateral completion’ by taking into account the maturity and balance power.
Risk of default and high volatility: In FX markets, especially non -expectation data and unusual events can cause rapid price movements. At this time, attention should be paid to the risk of default.
High Risk Risk: Leveraged processes, which are seen as serious advantage, also have high risks. In contrast to the position taken, the risk of loss increases in rapid movements. The leverage ratio must be adjusted correctly.
Choosing the right intermediary institution / Opposition Risk: In FX markets, there are intermediaries called “under the stairs”. These organizations, which are not supervised by regulatory authorities, can often victimize investors. In Turkey, there are fx and FX intermediary institutions operating, operating, subject to CMB audit and legislation.
Basis, whose foundations were laid in the Grand Bazaar in 1987 and have been operating with the necessary licenses since 2012. As one of the leading stock exchange and FX intermediaries in Turkey, it has been the reliable address of Forex transactions.
10 Basic Rules of Avoiding Errors in Forex Market
- To follow markets as much as possible
- To set the “leverage” ratio correctly
- Tenning in parity with depth.
- Using “Damage” and “Get Profit” orders effectively.
- Basic and technical analysis, knowing at the level of entry.
- Disciplined progress, constructing simple systems, avoid complex processes.
- Avoid a large number of and fast operations as much as possible.
- Not to take a parity just as “too much”, to investigate the reasons behind it.
- It is best to make transactions in the parities you know.
- Not to get into very short -term volatility, to focus on longer trends.
Is the Forex market different from the stock market?
Forex markets; Leveraged transactions differ from the stock markets with features such as gaining from decreases and continuing 24 hours of transactions. In foreign exchange transactions, there is no dividend gain as in stocks, and the price movements are provided.
Is Forex safe?
Forex transactions in Turkey are regulated by the Capital Markets Board (CMB) with regulations and rules. All of the CMB authorized intermediary institutions; It provides FX transactions to investors by committing to comply with these rules. The money sent to the accounts opened in these institutions is kept before Takasbank and is also under the supervision of the Central Registration Agency. Therefore, the accounts opened in CMB licensed brokerage houses are safe.
The most important measure taken by the CMB to protect investors; leverage ratios are limited to 1 to 10.
How to Open Forex Account?
Individual investors can easily open accounts in CMB licensed brokerage institutions today. For this purpose, it is sufficient to have a photocopy of the TC Identity, the Address Declaration (Residence or Invoice), Signing of the Brokerage Authority Agreement and signing the leveraged transactions purchase/sale contract.
Turkey’s Pioneer FX Intermediary Institution Colonel Investment Menkul Değerler A.Ş. You can also use the opportunity to open online accounts without going to the branches from your location and start forex transactions immediately with individual customer representative and demo account support.
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