Al-Salam Investments’ Forex Instruments
Our Most Popular Instruments
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*Note that the margin price fluctuations are influenced by leverage
All Forex Instruments
Click on any instrument for further specifications
*Note that the margin price fluctuations are influenced by leverage
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Forex FAQ
Currency pairs are two different currencies that are traded against each other. Each pair consists of a "base" currency and a "quote" currency. The value of the base currency determines the value of the quote currency.
For example, if a trader believes the European economy is stronger than the US economy, they would sell EUR/USD pairs.
Currency pairs are quoted using bid and ask prices (buy and sell).
When you buy a currency pair from Al-Salam Investments, it means that you are buying the base currency and selling the quotation currency. And when you sell the currency pair, it means that you are selling the base currency and receiving the quotation currency.
The value of a currency is determined by a number of factors, including economic indicators, political stability, etc.
Economic factors are the most significant element in influencing currency prices. When a country's economy is strong, its currency's value tends to increase in relation to other currencies. This is due to the increased demand for cash as investors direct their funds to the country's assets and businesses. In contrast, when a country's economy is weak, its currency often drops in value compared to other currencies. In this instance, investors lose interest in the country's assets and businesses, and currency demand falls.
Currency values are also heavily influenced by political stability and other factors.
Because all forex trading involves purchasing one currency and selling another, it is priced in pairs. If you expected the base currency to strengthen versus the quotation currency, you would buy the pair; if you predicted the reverse, you would sell.
It should be noted that in forex, you buy or sell one currency against another without owning the underlying currency.