What is Forex ?

"Forex" is an abbreviation of the word Foreign Exchange.

"Wikipedia : The foreign exchange market (forex, FX, or currency market) is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies."

• Forex Market have 2 way.Profit can take when market prices are up or down.
• 24-hour market, "Forex" schedule begins on Monday at 00:00 GMT and close late on Friday.
• While in the day Saturday and Sunday,Forex Market is closed.(24 hours a day except weekends)
• Market liquidity is always active.Trade liquidity had reached USD $ 4.5 Trillions per-day.
• The Forex market is not controlled by any individual, association even a country. (Global)

For those who are Muslim, "Forex" is lawful, is confirmed by the Mufti Perak.You may refer the issues in Perak Mufti website: http://mufti.perak.gov.my/kemusykilan/Musykil_utama.htm

There are many who doubt the law Forex.

Generally there are 2 types of accounts offered by Forex Broker, 

• a "swap" account
• a "swap free" account.

Swap here means a charge imposed when trading through a day of trading (GMT 00: 00), if this happens then we will be charged as "overnight charge". The concept is like usury in which this type of account is unlawful by syarak.But many brokers also provide "swap free" or Islamic accounts for Muslims.

These accounts are usually only charge a trading / commission payments once upon entering the trading, the account type is allowed in Islam.

The difference between Forex and Stock

Forex Market

• 2-Way Market
• Buyers and sellers no limit
• Traders can trade anytime, 24 hours from Monday to Friday (00:00 GMT)
• Traders can buy and sell currency
• Not in the manipulation of any party
• Can buy at lower prices and sell at high prices (simultaneously)

Stock Market

• 1-Way Market
• Buyers and sellers of limited
• Traders can trade at working hours only
• Traders can buy and sell shares
• Easy manipulation by some
• Need to buy at lower prices and sell at high prices

Forex Account Type

There few types of accounts in forex, which are the Regular and Mini Account,an accounts usually have a leverage.Leverage is the form of loans given by the broker to the trader (forex player's), this is calculated as a ratio such as 1:200 or 200:1. devoted to the mini account traders with any sensible small capital traders got times for large capital is devoted in the Regular account.

The difference between the Mini Account and Regular Account

Mini Account

• In the matter in the form of cent
• Capital issued by the broker for a lot = 10,000
• Leverage has a large

Regular Account

• In Count in U.S. Dollar
• Capital issued by the broker for a 1 lot = 100,000
• Leverage has a small (some brokers provide great leverage)

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