Forex

Forex Basics

28 August 2025 3 min min read

Forex trading, also known as foreign exchange trading, is the world’s largest financial market, with daily transactions exceeding $7 trillion. It offers traders the opportunity to buy and sell currencies, speculate on price movements, and access a market that operates 24 hours a day, five days a week.

At NAJM Capital, we provide traders in MENA and globally with access to professional-grade forex trading platforms, tight spreads, and multiple account types that match every trading style.

What is Forex Trading?

Forex trading involves exchanging one currency for another in the hopes of making a profit. The market is decentralized, meaning it operates through banks, brokers, and electronic trading networks rather than a single exchange.

Currencies are traded in pairs, such as EUR/USD or GBP/JPY. The first currency is the base currency, while the second is the quote currency. Traders speculate on whether the base currency will rise or fall in value relative to the quote currency.

Learn more about account types that support forex trading in our Account Comparison Page.

Why Trade Forex?

Traders worldwide choose forex because:

  • Liquidity –  With trillions traded daily, it’s the most liquid market.
  • Leverage – Forex allows traders to control larger positions with smaller deposits.
  • Accessibility – Forex markets are open 24/5, across time zones.
  • Diverse Opportunities – Major, minor, and exotic pairs provide options for all strategies.

At NAJM Capital, clients benefit from leverage up to 500:1, institutional-grade spreads, and global market access.

How Forex Trading Works

Forex prices move due to supply and demand factors such as interest rates, inflation, global trade, and geopolitical events. For example:

  • If traders expect the U.S. economy to perform strongly, demand for USD may increase.
  • If oil prices rise, commodity currencies like CAD (Canadian dollar) often strengthen.

Traders profit by buying when they expect a currency to rise and selling when they expect it to fall.

Types of Forex Pairs

  • Major Pairs – Most liquid pairs like EUR/USD, USD/JPY, GBP/USD.
  • Minor Pairs – Pairs excluding USD, such as EUR/GBP or AUD/JPY.
  • Exotic Pairs – One major currency paired with an emerging market currency, like USD/TRY.

See our Forex Trading Page for detailed insights on live rates and pair categories.

Forex Trading Platforms

A forex trading platform is your gateway to the market. NAJM Capital offers:

  • MetaTrader 5 (MT5) – The industry’s most popular forex trading software with advanced charts, automated trading, and cross-device support.
  • NAJM Capital Proprietary Platform – Tailored for MENA traders, offering intuitive navigation and fast execution.

Explore our Trading Platforms Page to learn more.

Risks in Forex Trading

While forex offers opportunity, traders should understand the risks:

  • High Leverage Risk – Amplifies gains but also potential losses.
  • Volatility – Sudden news or events can move markets quickly.
  • Psychological Pressure – Emotional decisions can affect trading performance.

NAJM Capital emphasizes risk management tools, educational content, and demo accounts to help beginners practice before trading live.

Strategies for Beginners

  1. Trend Following – Identifying upward or downward market trends.
  2. Range Trading – Trading between support and resistance levels.
  3. Scalping – Making small, frequent trades on short-term moves.
  4. Swing Trading – Holding trades for days or weeks to capture medium-term moves.

Conclusion

Forex trading is the foundation of the global financial market, offering unparalleled liquidity and opportunities for traders at every level. At NAJM Capital, we provide trusted forex trading platforms, multiple account types, and professional support to help traders succeed.

Ready to get started? Open a Forex Trading Account today and experience the difference with NAJM Capital.


Sign up and start trading now

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