ARTICLE #107 — FOREX TRADING (English–Malay)

1. What Is Forex Trading? (English)

Forex trading—short for “foreign exchange trading”—is the process of buying and selling global currencies with the goal of making a profit. The forex market is the largest and most liquid financial market in the world, with more than USD 7 trillion traded daily.
Unlike the stock market, forex operates 24 hours a day, five days a week, across major financial centres such as London, New York, Tokyo, and Sydney.

How Forex Trading Works

Forex trading always happens in pairs (currency pairs), for example:

EUR/USD (Euro vs US Dollar)
GBP/JPY (British Pound vs Japanese Yen)
USD/MYR (US Dollar vs Malaysian Ringgit)

You buy one currency while selling another. If the currency you buy increases in value, you profit.

Why Forex Is Popular

Low capital needed
High liquidity
24/5 trading
Can profit in rising or falling markets (buy & sell both available)
Global access via apps and brokers

2. Apakah Itu Forex Trading? (Bahasa Melayu)

Forex trading ialah aktiviti jual beli mata wang asing untuk mendapatkan keuntungan. Pasaran forex adalah pasaran kewangan paling besar di dunia, dengan lebih USD 7 trilion didagangkan setiap hari.

Berbanding pasaran saham, forex beroperasi 24 jam sehari, 5 hari seminggu.

Cara Forex Berfungsi

Forex sentiasa didagangkan dalam bentuk pasangan mata wang, sebagai contoh:

EUR/USD
GBP/JPY
AUD/USD
USD/MYR

Jika anda membeli EUR/USD, anda menjangka nilai EURO akan naik berbanding USD.

Kenapa Forex Sangat Popular

Modal kecil
Risiko rendah jika guna stop-loss
Pasaran buka 24/5
Boleh untung walaupun harga jatuh
Banyak strategi boleh digunakan

3. Common Forex Pairs

Forex pairs are divided into:

Major Pairs

EUR/USD
GBP/USD
USD/JPY
USD/CHF
AUD/USD

Minor Pairs

EUR/GBP
GBP/JPY
EUR/JPY

Exotic Pairs

USD/MYR
USD/THB
EUR/TRY

4. How Profit Is Made in Forex

Forex traders make profit through:

Price movement (Pips gain)
Leverage (Small capital, larger position)
Technical analysis
News trading (economic events)

Example:

If you buy EUR/USD at 1.0800 and sell at 1.0850, you earn 50 pips.

5. Tools Used in Forex Trading

1. MT4 / MT5 platforms

Most popular tools for charts & trading execution.

2. TradingView

Used for technical analysis and chart patterns.

3. Economic Calendar

Important for monitoring news such as:

NFP
CPI
FOMC
Interest rates

4. Risk Management Tools

Stop loss
Take profit
Lot size calculator

6. Forex Trading Strategies

Here are evergreen strategies:

1. Trend Following Strategy

Buy when the market is in uptrend (higher highs)
Sell when the market is in downtrend (lower lows)

2. Breakout Strategy

Trade when price breaks key resistance or support.

3. Scalping Strategy

Short trades: 1–5 minutes.
Suitable for fast traders.

4. Swing Trading Strategy

Trades last 1–7 days.
Less stressful and more stable.

5. News Trading Strategy

Based on major news like NFP & interest rates.

7. Technical Indicators

Common indicators used by traders:

1. Moving Average (MA)

Shows trend direction.

2. RSI

Measures overbought or oversold zones.

3. MACD

Identifies trend strength and momentum.

4. Fibonacci Retracement

Used to find retracement levels.

5. Bollinger Bands

Shows volatility.

8. Risk Management in Forex

The most important part of trading.

Golden Rules

Never risk more than 1–2% per trade
Always use stop loss
Do not over-leverage
Avoid overtrading
Have a trading plan

9. Pros & Cons of Forex Trading

✔ Advantages

Low starting capital
Very liquid market
Trade anytime
Easy to learn basic skills
Profit in both directions

✘ Risks

Highly volatile
Leverage can increase losses
Emotional trading
Unregulated brokers (must be careful)

10. Is Forex Trading Halal or Haram?

This depends on how it is done.

Halal if:

No riba
No overnight swap (use Islamic account)
Real asset backing
Clear profit/loss transparency

Most brokers offer Islamic Swap-Free Accounts.

11. How to Start Forex Trading (Step-by-Step)

1. Choose a regulated broker

Examples: (General guidance only—no promotion)

Regulated by ASIC
Regulated by FCA
Regulated by CySEC

2. Open a trading account (Islamic or Standard)

3. Deposit money

Use amount you can afford to lose.

4. Use demo account first

Practice until consistent.

5. Start with small lot sizes

Begin with 0.01 lots.

6. Apply strategy + risk management

12. Conclusion

Forex trading is one of the most accessible financial markets in the world. It offers high profitability potential, but only for traders who are disciplined, patient, and equipped with a strong strategy.

Dengan ilmu yang betul, pengurusan risiko yang kemas, dan broker yang selamat — forex boleh menjadi sumber pendapatan jangka panjang.