Having Million Questions in mind ???
Contents • Introduction :Why Forex? • History of Forex Market • Forex with other market • Profitability • Cashing in on Price Movements • Spread & pips • Lot • Types of trading
WHAT IS FOREX? • The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with the equivalent of over $3.7 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. It is a market where foreign currencies are bought and sold.
History of Forex Market or Spot FX. Initially it was done between the Networks of Banks. Till 1990 it is only done by BIG GUYS or Financial Institution. Minimum amount required to start your forex Trading is 10 to 50 Million bucks. Internet and online Forex trading firms (Brokers) help us to explore this wonderful opportunity.
Forex with other market • The Fastest and largest Financial • Market in the world.
Why Forex? • Platform – Friendly in nature • 24 Hour Market ‐ • Narrow Focus – • Liquidity • The Market Can’t Be Cornered • Fast Trade execution • Low investment - 1:100 time leverage • Any sort of movement is an opportunity to trade.
Cashing in on Price Movements • The market is always on the move, and every tiny shift in currency rates can mean profits and losses of hundreds and even thousands of dollars!
The eight most traded currencies on the Forex market • USD : U.S. • EUR : Euro • GBP : British Pound • JPY : Japanese Yen • CAD : Canadian Dollar • CHF : Swiss Franc • NZD : New Zealand Dollar • AUD : Australian Dollar
Forex trading is always done in pairs, since any trade involves the simultaneous buying of a currency and selling of another currency. The trading revolves around 14 main currency pairs. These pairs are: • The FOUR majors • EUR/USD • USD/JPY • USD/CHF • GBP/USD • Currency Crosses EUR/CHF EUR/JPY GBP/JPY EUR/GBP • Other majors AUD/USD USD/CAD
Example The currency pair rates are volatile and constantly changing. One way to profit is by buying a pair, then selling it at a higher rate. The second way is by selling the pair, then buying it at a lower rate
Important Terminologies • Spreads • Pips • Mini • Standard • Pip value in all sizes
Manual Vs Automated Trading. • A trader has to make all decisions himself so it’s a bit difficult task in manual trading. • In manual trading Human effort is more involved so it’s more reliable than automated trading. Therefore most of the experts prefer to follow manual trading. • Manual trading is Time taking activity. • The human brain can never be replaced by any of the software or robot. Trading market is very unpredictable.
Automated • A trader does not need to spend hours and hours in front of the computer because even the decisions are made by the robots. • These software's and robots are very easy to use. • Because of the simple functionality and easy money making mostly beginners prefer to use automated trading. • The use of Artificial Intelligence concept in the robots has improved the reliability. • These robots give profit for short time span because these robots are mostly built on for solving the specific situation that exists in the market. When the situation is over the robot also becomes outdated. • Most of the automated robots do not commit what they claim. • Although some of the robots give profits for long time due to built in RCTPA technology used but even they fails when any unforeseen situation occurs.
Market analysis • Fundamental Technical Analysis
Open a live account • Photo • Address proof • Wire transfer • Credit card, Debit card For free DEMO URL: www.ecnlive.co
Danger!!!!!! • Having said all that, it is important to remember that as profitable as the Forex market is, it still carries all the risks involved with financial trading is also high. You should always be aware of the risk, and never risk money that you can’t afford to lose. • Currency trading success is based around the following equation: A logical method + the discipline to follow it = currency trading profits.