Forex trading has the goal of making profits from changes or fluctuations in exchange rates. The currency exchange rate changes all the time. It can be seen in the bank that the nation’s currency exchange rate against the USD can change very quickly. Now, this currency exchange rate is the object of forex trading in Bahrain, and you can visit http://www.arabforex.pro/en/bahrain/ to find some of the best forex brokers in your country.
The forex trading market in Bahrain has different characteristics, ways of working, and risks from other financial markets, such as:
Over the Counter (OTC)
Unlike stocks where transactions occur centrally on the stock exchange between 3 parties (you, the broker, and the Stock Exchange), forex transactions are Over the Counter only between two parties (you and the broker). In forex, because transactions do not occur on one exchange, but occur between you and the broker, as a result, the foreign exchange rate can differ from one broker to another. In addition, the absence of exchange in forex makes the role of the broker very central. Due to only brokers from Bahrain and you make transactions. It must be certain that the broker can be trusted and legitimate because there are no other parties involved in forex transactions.
Without Exchange of Goods
Forex trading is different from stock trading. You don’t have the stuff. There is even no currency exchange, like when you make a transaction at a money changer. When closing a forex position, you only see the price difference, and pay (receive) the difference, depending on your profit or loss.
So many Bahrain people and organizations conduct forex transactions every day, so it is very liquid, which in turn is profitable for traders because they can sell and buy quite easily.
Liquid markets are important because:
– It makes transactions more efficient. The price formed is the best price for both sellers and buyers. – It allows sellers and also buyers to trade all the time without worrying the transaction will not be processed.