TRADING CURRENCIES. OhMyGeorge! Gamers Make The Best Traders!

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "TRADING CURRENCIES. OhMyGeorge! Gamers Make The Best Traders! www.ohmygeorge.com"

Transcription

1 TRADING CURRENCIES 101 OhMyGeorge! Gamers Make The Best Traders! 1

2 CONTENT PART 1 What is currencies trading? p.3 PART 2 Reading a currency quote p.6 PART 3 How to get started? p.10 PART 4 Forex trading tips and vocab p.14 2

3 Chapter 1 What is currency trading? How big is the market compared to stocks and volume traded per day How to make money Most famous currencies pairs (Currency Symbols, Major Traded Currency Pairs) 3

4 Chapter 1 - What is currency trading? What is the foreign exchange market? The foreign exchange market has many different names and nicknames. So if you see people referring to the currency exchange market, FX or Forex, they are all referring to the same thing. So what is it? The foreign exchange is where corporation, financial institutions and individuals trade their currencies. Currency trading is one of the most important aspects of modern society because they are at the origin of all trades. Currencies need to be exchanged in order to conduct foreign trade and business. You must have already encountered currency trading in your life. For example, if you are living in the USA and you want to buy wine from France, you will need to pay the French vineyard in its local currency, the Euro (EUR). This means you need to exchange U.S dollars (USD) into the equivalent value of euros before being able to sip some good wine. If you have travelled outside of the Eurozone, you ve probably also encountered foreign exchange. For example if you are a French tourist traveling to China, you won t be able to spend your Euros (EUR) to walk on The Great Wall of China because it s not the locally accepted currency. So you will need to exchange your euros for the local currency, in this case the Chinese Yuan (CNY). So how big of a market are we talking about? The foreign exchange market is a global, decentralized market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of volume of trading, it is by far the largest market in the world. Financial centres around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock. «it is by far the largest market in the world» Tweet The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, 4

5 Chapter 1 - What is currency trading? Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across every time zone. This means that when the trading day in the U.S. ends, the trading begins in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly. The foreign exchange market does not determine the relative values of different currencies, but sets the current market price of the value of one currency as demanded against another. Trading in foreign exchange markets averaged $5.3 trillion per day in April For comparison the NY Stock Exchange, the largest stock market in the world, trades a measly $50 billion per day That s 1% of the size of currency markets! How to make money on the foreign exchange? So now that you have the big picture and that you understand what is the foreign exchange market, you should now be asking yourself how to start making some profit out of this. The best way to explain how it works is by giving you an example. Like I told you in the introduction, if you ve travelled to a foreign country, chances are that you ve had to exchange your currency for the local currency. So imagine you are a French tourist traveling to China and you want to walk on The Great Wall of China. Before you leave France, you took out 1000 euros from your savings which you exchange for Chinese Yuan (CNY). Let s say at the time of the exchange you could get 8 Yuan for every 1 euro. So in total you ve bought 8000 Yuan from your 1000 euros. Now that you ve gone on vacation in China, walked on the great wall of China, but you were lucky, grandma Susan came with you on the trip and she paid for all of your expenses! You didn t even spend 1 Yuan! So you return to France with 8000 Yuan still in your wallet, but during your stay in China, the exchange rate has changed and the value of 1 euro is now 7 yuan. So you go back to your bank to change your money back and you now get 1143 euros. That s 143 euros more than your initial purchase. So this is it, you just made money by exchanging currencies. Buying one currency, holding it and selling it at another value for profit. 5

6 Chapter 2 Reading a currency quote You just made money by exchange money while traveling to a foreign country! That s awesome. But now it s time to show you how currencies pairs are traded in the foreign exchange market. So each currency gets traded in pairs. The value of each currency is always based on the exchange rate between its pairing partner. That s why currencies are always quoted in pairs, for example : GDP/EUR, EUR/USD, USD/JP.. In order to trade, you need to know how to read a currency pair. 6

7 Chapter 2 - Reading a currency quote First, you need to know your currency symbols. Currencies are always written using 3 letters. The first two letters refer to the country where the currency comes from. The third letter refers to the name of the currency. For example : USD stands for United States Dollar. GBP is for Great Britain Pound. AUD is for Australian Dollars, etc. Here is a table of the most commonly traded currencies and their acronyms: Symbol AUD CAD CHF EUR GBP JPY NOK NZD SEK USD Currency Australian Dollar Canadian Dollar Swiss Franc European Euro Great Britain Pound Japanese Yen Norwegian Krona New Zealand Dollar Swedish Krona United States Dollar 7

8 Chapter 2 - Reading a currency quote Pairs Currency pairs always contains two currencies: the Base Currency and the Quote Currency. The base currency refers to the first currency shown in a currency pair, and the quote currency refers to the second. Let s look at an example: in the EUR/USD pair, the first currency (EUR) is the base currency. The second currency (USD) is the quote currency. In this example, the exchange rate would represent how much of the quote currency is required to buy 1 unit of the base currency. Trade currency Pairs Although all countries must trade currencies, only a handful of currencies pairs are significantly traded. These pairs are called the Major Currency Pairs and include: Pair Currency Trader term AUD/USD Australia / USA «Aussie Dollar» EUR/USD Euro Zone / USA «Euro Dollar» GBP/USD United Kingdom / USA «Pound Dollar» NZD/USD New Zealand / USA «Kiwi Dollar» USD/CAD USA / Canada «Dollar Loonie» USD/CHF USA / Switzerland «Dollar Swissy» USD/JPY USA / Japan «Dollar Yen» Due to the size and strength of the United States economy, the American dollar is the world s most actively traded currency and is paired with every major currency. The U.S. dollar is the unofficial global reserve currency nearly every central bank and institutional investment entity holds it. The euro is the second most traded currency and so is second largest reserve currency. It serves most Eurozone nations. The Japanese yen is the most traded Asian currency, and it measures the overall health of the Pan-Pacific region. 8

9 Chapter 2 - Reading a currency quote At this point you should start to understand a bit more about the logic behind currency trading and how to read quotes based on the foreign exchange market! Are you getting excited yet!? 9

10 Chapter 3 How to get started Bid/ask, conducting Research and where should you start. 10

11 Chapter 3 - How to get started Buy/Sell = Long/Short = Rise/Fall You will see these different terms while reading about forex trading. But they all mean the same thing. When you open a position on the foreign exchange market, you will need to take a decision that every trader has to do and that is to predict whether it will RISE or FALL. If you want to buy the base currency and sell the quoted currency, this means that you are expecting the base currency to rise so as to sell it back at a higher price. You can also call these positions Long positions. In the other hand, if you want to sell the base currency to buy a quote currency, this means that you want the base currency to fall in price so as to buy it at a lower price. You can also call those positions Short positions. So, remember BUY= Rise and SELL = Fall. increases, so does the price of buying that currency. When you predict that an exchange rate is going to rise, you buy, or go long on the said currency. If the exchange rate goes up as you predicted, when you are ready to end the trade, you sell that currency and make a profit. However, if the exchange rate falls, you will lose money. Rise The exchange rate rises when there is more demand for the particular currency. As demand 11

12 Chapter 3 - How to get started Say you want to trade the EUR/USD pair and you decide to invest $100 in the trade with an exchange rate of For various reasons, you believe that the exchange rate is going to go up so you buy Euros using USD. The trade is now open, and you are holding Euros. After some time, the exchange rate actually begins to fall, rather than rise. You decide to cut your losses short and end the trade before you lose too much money so you sell your Euros back to USD at a rate of 1.08 (based on the screenshots from omg). Because the exchange rate fell, you lost $2, therefore you now have a new balance of $98. To sum up, when you believe that an exchange rate is going to rise, you buy the currency in question and hold onto it. If the exchange rate rises, you make a profit when you sell back to the base currency. If it falls, you incur a loss. ( USD = (100.00/1.10) EUR = EUR > EUR = (90.91 x 1.08) USD = USD) Fall When you think that the exchange rate is going to fall, the exact opposite happens. IIn that situation you re not buying the currency, you are actually selling it or shorting it. Sometimes, you are selling something that you don t actually own, because it s like if you re going to buy it back at a different price. So if the exchange rate falls, you will make a profit. If it rises, you will lose money. Here is an example. You decide to make a trade of $100 at a EUR/USD rate of If you are trading on OhMyGeorge application the currency of your trading account is in USD. Because you believe that the exchange rate is going to fall, you sell EUR to hold USD. Don t worry if you don t actually own any USDollars, because we will lend them to you. You made the right decision, and the exchange rate does fall. You decide to close the trade at a rate of 1.15, return the USD back to the broker, who then pays you a tidy profit of $26.5. Understood? OhMyGeorge I made money! Dealing with emotions One important aspect of forex trading is the ability to deal with your emotions. The key to succeed in the currency exchange market is to avoid making decisions based on emotions. You 12

13 Chapter 3 - How to get started need to follow a carefully thought out strategy that takes the current market and history into account. Going with your gut will not work in the long run and it s not the way to go in the foreign exchange market. And It could even cost you money! Forex trading is a highly volatile market where emotions tend to run high! (An example is trading during the Brexit events). Emotions can influence your trading decisions so if you make decisions based on strategy planned in advance, you need to stick to it no matter what you think you re seeing at the moment. That s the key to success in the Foreign exchange market. Make up your own strategy based on a system, analysis and perseverance. «Confidence - half the battle» Tweet Don t let your emotions rule your decisions! This could hurt your trading decisions in a number of ways. The strategy should tell you when to buy, what to buy and when to trade. By sticking to your strategy you will be able to maximize your profits. Most experienced traders tell novice traders that they need to develop a system - and stick to it no matter what. Doing the Research and where should you start Tweet «Knowledge is of no value unless you put it into practice.» You will be able to find a lot of information on internet on how to get started on forex trading, (look, you managed to find this e-book) So there is an endless list of websites where you will be able to find some interesting information about the foreign exchange market:

14 Chapter 3 - How to get started How to start experiencing forex trading? Before going full onboard with real money, it s important to experience the markets with a demo or practice account. Those type of accounts are free to play and are plugged to real time data so you will be experiencing the real deal, without any risk. We are actually building an mobile application that does just that. We are building OhMyGeorge! A forex trading simulation game. Experience Fast paced trade on real time data without any risk. 14

15 Chapter 4 Forex trading tips and vocab You will be able to talk like a real trader with all those trading tips and vocab! Hope you will use them often. 15

16 Chapter 4 - Forex trading tips and vocab Forex Forex is the short term for Foreign Exchange, which is the market where currencies are traded. Forex, Fx, Fx market are all the same thing. Currency Pairs Two currencies that are traded together in the foreign exchange markets. The value of a currency is determined by another currency. For example EUR/USD represents the cost of buying Euros using US Dollars. Currency pairs are read as such: the first currency listed is the base currency. The second currency listed is the quote currency. This mean that to buy 1 unit of the base currency, you have to spend X units of the quote currency. Exchange Rate the value of one currency against another. So if the exchange rate of the EUR/USD currency pair is 1.50, this means that the value of 1 Euro in US Dollars is $1.50. «You d better manage your risks» Long vs Short Positions Going long, or holding a long position, is the buying of a currency with the expectation that the asset will rise in value. On the ohmygeorge app, this is the «RISE» button. In contrast, going short, or holding a short position, is the sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value. On the ohmygeorge app, this is the «FALL» button. Volatility Tweet Volatility refers to the amount of risk involved in a currency exchange rate. When volatility is high it means that the price of the currency can change dramatically over a short time period in either direction. But if volatility is low, it means that the exchange rate does not fluctuate often, and that the changes in value are steady. The higher the volatility, the riskier the tra- 16

17 Chapter 4 - Forex trading tips and vocab ding of the currency pair is. Stop-Loss This is a trading tool used by all the traders! This tool will allow you to define the maximum loss amount on a trade. So if your trade value meets this previously defined amount, the trade will automatically be closed. This is useful to limit your losses. Base currency The first currency in a currency pair. It shows how much the base currency is worth as measured against the second currency. Forex Broker Firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. A currency trading broker is also known as a retail forex broker, or just forex broke 17

18 OhMyGeorge Experience financial trading 18

19 OhMyGeorge Credits Author : Olivier Alcouffe Design : Thaddé Méneur 19

AN INTRODUCTION TO TRADING CURRENCIES

AN INTRODUCTION TO TRADING CURRENCIES The ins and outs of trading currencies AN INTRODUCTION TO TRADING CURRENCIES A FOREX.com educational guide K$ $ kr HK$ $ FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited is a member

More information

www.easyforexpips.com

www.easyforexpips.com www.easyforexpips.com What is Forex? Forex simple means FOReign EXchange, If you've ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange

More information

Chapter 1.2. Currencies Come in Pairs

Chapter 1.2. Currencies Come in Pairs Chapter 1.2 Currencies Come in Pairs 0 GETTING STARTED You know the advantages of trading forex, and you are excited to start trading. Now you need to learn what this market is all about. How does it work?

More information

SPOT FX Trading Strategies. Copyright Powerup Capital Sdn Bhd

SPOT FX Trading Strategies. Copyright Powerup Capital Sdn Bhd SPOT FX Trading Strategies Currency Codes USD = US Dollar EUR = Euro JPY = Japanese Yen GBP = Great Britian Pound CHF = Swiss Franc CAD = Canadian Dollar AUD = Australian Dollar NZD = New Zealand Dollar

More information

Chapter 1.2. Currencies Come in Pairs

Chapter 1.2. Currencies Come in Pairs Chapter 1.2 Currencies Come in Pairs 0 GETTING STARTED You know the advantages of trading forex, and you are excited to start trading. Now you need to learn what this market is all about. How does it work?

More information

Introduction to Forex Trading

Introduction to Forex Trading Introduction to Forex Trading The Leader in Rule-Based Trading 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders. Please be advised that

More information

The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and

The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and you can lose money as well as make money. Manage your

More information

Intro to Forex and Futures

Intro to Forex and Futures Intro to Forex and Futures 1 Forex Trading Forex is a term meaning foreign exchange, and refers to trading the currency of one country against the currency from another country simultaneously. Over $1.4

More information

FxPro Education. Introduction to FX markets

FxPro Education. Introduction to FX markets FxPro Education Within any economy, consumers and businesses use currency as a medium of exchange. In the UK, pound sterling is the national currency, while in the United States it is the US dollar. Modern

More information

INTRODUCTION TO FOREIGN EXCHANGE

INTRODUCTION TO FOREIGN EXCHANGE INTRODUCTION TO FOREIGN EXCHANGE Capademy Tutorial Series Option Banque Training Series Vol. 1 The foreign exchange market known as forex for short is the market in which currencies or sovereign money

More information

The World s Elite Trading School. The Trusted Source for Online Investing and Day Trading Education Since 1994. What is a Forex?

The World s Elite Trading School. The Trusted Source for Online Investing and Day Trading Education Since 1994. What is a Forex? What is a Forex? Forex is the market where one currency is traded for another Unlike stocks and futures exchange, foreign exchange is indeed an interbank, over-the-counter (OTC) market which means there

More information

A FOREX MARKET OVERVIEW

A FOREX MARKET OVERVIEW 01 CONTENTS Disclaimer Introduction Recent Forex Market History Composition of the Forex market How Currencies Trade on the Forex market Valuation of Currencies Fundamental Analysis Technical Analysis

More information

Understanding Forex Trading

Understanding Forex Trading Forex Trading Contents Understanding Forex Trading... 3 Which Forex Currencies Should You Trade?... 3 Multiple Forex Time Frames Is Best... 4 3 Forex Pairs For Beginner Forex Traders... 5 Choosing a Forex

More information

Learn to Trade FOREX II

Learn to Trade FOREX II Lesson 1 The Forex Market The Foreign Exchange market, also referred to as the "FX market" or "Spot FX", is the largest financial market in the world with daily average turnover of US$1.9 trillion. Unlike

More information

FOREX FOR BEGINNERS. www.mundomarkets.com

FOREX FOR BEGINNERS. www.mundomarkets.com FOREX FOR BEGINNERS CONTENT 01. 02. 03. 04. What is forex market and how it works? Forex market (page 2) Liquidity providers (page 3) Why acquiring knowledge is important in the forex market? Experience

More information

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK SA AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK EDUCATIONAL GUIDE AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET www.dukascopy.com CONTENTS INTRODUCTION TO FOREX CURRENCY

More information

FOREX. made easy. UNDERSTANDING THE BASICS. An educational tool by Blackwell Global.

FOREX. made easy. UNDERSTANDING THE BASICS. An educational tool by Blackwell Global. FOREX made easy UNDERSTANDING THE BASICS. An educational tool by Blackwell Global. Risk Warning: Forex and CFDs are leveraged products and you may lose your initial deposit as well as substantial amounts

More information

INTRODUCTION. This program should serve as just one element of your due diligence.

INTRODUCTION. This program should serve as just one element of your due diligence. FOREX ONLINE LEARNING PROGRAM INTRODUCTION Welcome to our Forex Online Learning Program. We ve always believed that one of the best ways to protect investors is to provide them with the materials they

More information

Introduction to Forex Trading

Introduction to Forex Trading Introduction to Forex Trading The Leader in Rule-Based Trading 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders. Please be advised that

More information

Forex Basics brought to you by MatrasPlatform.com

Forex Basics brought to you by MatrasPlatform.com Forex Basics brought to you by MatrasPlatform.com Table of Content What is FOREX... 3 FOREX Basics... 4 Trading Hours... 4 What Is Traded on FOREX?... 4 The Six Majors... 4 Currency Pair Distribution...

More information

International Financial Markets. The spot market for foreign exchange

International Financial Markets. The spot market for foreign exchange Lecture Notes for 15.436 International Financial Markets Chapter 2 The spot market for foreign exchange Fall 1999 Raman Uppal 2-2 International Finance: Chapter 2 Spot exchange market Fall 1999 Road Map

More information

FX Domain Kick-start for Testers

FX Domain Kick-start for Testers FX Domain Kick-start for Testers A brief introduction to key FX elements. Discussion Document by Mark Crowther, Principle Test Architect Tien Hua, Senior Test Analyst Table of Contents Introduction...

More information

Practice Set and Solutions #1

Practice Set and Solutions #1 Bo Sjö 2012-10-03 Practice Set and Solutions #1 What to do with this practice set? 1 Practice sets are handed out to help students master the material of the course and prepare for the final exam. These

More information

Maverick FX Trading. Forex 101 Session #4 Preparation for Demo Trading

Maverick FX Trading. Forex 101 Session #4 Preparation for Demo Trading Maverick FX Trading Forex 101 Session #4 Preparation for Demo Trading Session #3 Review Time frames Relative Strength/Weakness Determine Strong/Weak News Events Correlations Session #4 Schedule Demo Account

More information

FOREX Markets & Trading Currencies

FOREX Markets & Trading Currencies FOREX Markets & Trading Currencies Updates Tonight: FOREX & Demonstra1on of thinkorswim pla9orm Next Week: Stock & Op*ons Trading 101 on March 3 rd Execu1ve Board Applica1ons out now Apply for COO & CMO

More information

The foreign exchange market is global, and it is conducted over-the-counter (OTC)

The foreign exchange market is global, and it is conducted over-the-counter (OTC) FOREIGN EXCHANGE BASICS TERMS USED IN FOREX TRADING: The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading platforms, or by telephone through

More information

BEST TIMES TO TRADE THE FOREX MARKET

BEST TIMES TO TRADE THE FOREX MARKET BEST TIMES TO TRADE THE FOREX MARKET The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements (BIS)

More information

Maverick FX Trading. Forex 101 Session #2 Forex Market Basics

Maverick FX Trading. Forex 101 Session #2 Forex Market Basics Maverick FX Trading Forex 101 Session #2 Forex Market Basics Session #1 Review How the currency market works Pairs Trading Building a Trading Plan Session #2 Schedule Understanding PIPs Margin, Margin

More information

The U.S. dollar continues to be a primary beneficiary during times of market stress. In our view:

The U.S. dollar continues to be a primary beneficiary during times of market stress. In our view: WisdomTree ETFs BLOOMBERG U.S. DOLLAR BULLISH FUND USDU Over the past few years, investors have become increasingly sophisticated. Not only do they understand the benefits of expanding their holdings beyond

More information

Mechanics of Foreign Exchange - money movement around the world and how different currencies will affect your profit

Mechanics of Foreign Exchange - money movement around the world and how different currencies will affect your profit Dear Business Leader, Welcome to the Business Insight Seminars an exclusive, informational series to help you gain a powerful edge in today s highly competitive business environment. Our first topic in

More information

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA Getting Started With Forex Trading: A Forex Primer Member NASD, NYSE, SIPC, and NFA 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders.

More information

Foreign Exchange Trading Managers

Foreign Exchange Trading Managers Foreign Exchange Trading Managers Quantum Leap Capital (abbreviated as QLC ) is a Forex Trading Manager which focuses on trading worldwide foreign currencies on behalf of institutions, corporates and individual

More information

Best Times to Trade Forex

Best Times to Trade Forex Best Times to Trade Forex The Forex Market The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements

More information

Trading forex is buying one currency while at the same time selling a different currency.

Trading forex is buying one currency while at the same time selling a different currency. F O R E I G N E X C H A N G E B A S I C S T E R M S U S E D I N F O R E X T R A D I N G The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading

More information

The Off-the-Radar Currency Trades That 90% of Traders Miss

The Off-the-Radar Currency Trades That 90% of Traders Miss The Off-the-Radar Currency Trades That 90% of Traders Miss By Sean Hyman, Editor, Currency Cross Trader My Favorite Way to Fire the U.S. Dollar Why We Trade Currency Crosses When you go to a restaurant,

More information

Contract Specifications 2015 Mini Trading Account

Contract Specifications 2015 Mini Trading Account Forex Currency Pairs Australian Dollar / Canadian Dollar (AUDCAD@) Australian Dollar / Swiss Franc (AUDCHF@) Australian Dollar / Japanese Yen (AUDJPY@) Australian Dollar / New Zealand Dollar (AUDNZD@)

More information

Contract Specifications 2015 Dynamic STP Trading Account

Contract Specifications 2015 Dynamic STP Trading Account Forex Currency Pairs (Online Trading Platform Symbol) 2 Minimum Price Fluctuation Tick / Point Value Pip Value Australian Dollar / Canadian Dollar (AUDCAD# / AUDCAD ) AUD 00,000 0.0000 CAD CAD 0 Australian

More information

The Currency Cross Trader

The Currency Cross Trader A Publication of The Sovereign Society The Currency Cross Trader Quick Start Guide The Sovereign Society 55 N.E. 5th Avenue, Suite 200 Delray Beach, FL 33283 USA USA Toll Free Tel: (888) 358-8125 Contact:

More information

LET S GET TO KNOW FOREX

LET S GET TO KNOW FOREX LET S GET TO KNOW FOREX AN INTRODUCTION TO TRADING CURRENCIES A FOREX.COM EDUCATIONAL GUIDE LET S GET TO KNOW FOREX AN INTRODUCTION TO TRADING CURRENCIES 4 INTRODUCTION: THE BULLS & THE BEARS 6 WHAT IS

More information

GETTING STARTED IN FOREX GLOBAL GETTING STARTED IN FOREX 1

GETTING STARTED IN FOREX GLOBAL GETTING STARTED IN FOREX 1 GETTING STARTED IN FOREX GLOBAL GETTING STARTED IN FOREX 1 TABLE OF CONTENTS Foreword Why Forex? Mechanics of Forex Trading Cash Flow in Trading Margin and Leverage Technical Analysis Fundamental Analysis

More information

TOPFX. General Questions: FAQ. 1. Is TOPFX regulated?

TOPFX. General Questions: FAQ. 1. Is TOPFX regulated? General Questions: 1. Is TOPFX regulated? TOPFX has been a regulated broker since April 2011, when it was granted a license by the Cyprus Securities and Exchange Commission (http://www.cysec.gov.cy/en-

More information

CHAPTER 7 SUGGESTED ANSWERS TO CHAPTER 7 QUESTIONS

CHAPTER 7 SUGGESTED ANSWERS TO CHAPTER 7 QUESTIONS INSTRUCTOR S MANUAL: MULTINATIONAL FINANCIAL MANAGEMENT, 9 TH ED. CHAPTER 7 SUGGESTED ANSWERS TO CHAPTER 7 QUESTIONS 1. Answer the following questions based on data in Exhibit 7.5. a. How many Swiss francs

More information

What is Forex Trading?

What is Forex Trading? What is Forex Trading? Foreign exchange, commonly known as Forex or FX, is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OTC) market. Forex is the world

More information

Guide to Online Forex Trading

Guide to Online Forex Trading Start Trading and Making Money in Forex WebTrader and MetaTrader If this is your first time coming across the online Forex market, then you have come to the right place! This guide will provide you with

More information

The Markit CDS Converter Guide

The Markit CDS Converter Guide The Markit CDS Converter Guide September 21, 2009 Contents Markit CDS Converter... 3 Steps for Use... 3 Interpretation of Results... 4 Email Results... 5 Interest Rate Curve... 5 Comments or Questions...

More information

CMM Subject Support Strand: FINANCE Unit 1 Exchange Rates: Text. 1.1 Straightforward Exchanges. 1.2 Buying and Selling

CMM Subject Support Strand: FINANCE Unit 1 Exchange Rates: Text. 1.1 Straightforward Exchanges. 1.2 Buying and Selling CMM Subject Support Strand: FINANCE Unit Exchange Rates: Text m e p STRAND: FINANCE Unit Exchange Rates TEXT Contents Section. Straightforward Exchanges.2 Buying and Selling.3 Currency Exchange with Commission

More information

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems:

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems: NEW TO FOREX? WHAT IS FOREIGN EXCHANGE Foreign Exchange (FX or Forex) is one of the largest and most liquid financial markets in the world. According to the authoritative Triennial Central Bank Survey

More information

LET S GET TO KNOW FOREX

LET S GET TO KNOW FOREX LET S GET TO KNOW FOREX Introduction Whether you re a power trader or a financial newbie, you re likely to hear just about anything market movements, outlooks and stocks being described as bullish or bearish.

More information

The Market for Foreign Exchange

The Market for Foreign Exchange The Market for Foreign Exchange Chapter Objective: 5 Chapter Five This chapter introduces the institutional framework within which exchange rates are determined. It lays the foundation for much of the

More information

Foreign Currency Accounts

Foreign Currency Accounts Foreign Currency Accounts Westpac Savings & Investments If you re planning to go overseas, doing business with overseas companies,or simply wanting to invest in another currency, a foreign currency account

More information

- INTRODUCTION - TIME & PRICE - CORRELATION - FOREX RANKING - FOREX BASKET ARBITRAGE - FX-QUANT

- INTRODUCTION - TIME & PRICE - CORRELATION - FOREX RANKING - FOREX BASKET ARBITRAGE - FX-QUANT 1 - INTRODUCTION - TIME & PRICE - CORRELATION - FOREX RANKING - FOREX BASKET ARBITRAGE - FX-QUANT 2 Which Trend line is correct? 3 What is the value of a 45 degree trendline when you have charts with different

More information

Introduction to the Forex Market

Introduction to the Forex Market Introduction to the Forex Market The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion.

More information

What Are the Best Times to Trade for Individual Currency Pairs?

What Are the Best Times to Trade for Individual Currency Pairs? What Are the Best Times to Trade for Individual Currency Pairs? By: Kathy Lien The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market

More information

THE 10 IDEAS BEHIND FOREX TRADING

THE 10 IDEAS BEHIND FOREX TRADING ForeMart THINK BIG. TRADE FOREX FOREX MARKET: THE 10 IDEAS BEHIND FOREX TRADING The 10 IDEAS Behind Fore Trading Risk Warning Foreign echange is highly speculative and comple in nature, and may not be

More information

The Forex Profit System :

The Forex Profit System : The Forex Profit System : How to Earn $50 to $500 a day Forex Trading from the Comfort of Your Own Home! OVERVIEW Dear Friend, Thanks for your interest in my Forex Profit System. The Forex Profit System

More information

Chapter 4 - The Foreign Exchange Market. Functions of the FX Market

Chapter 4 - The Foreign Exchange Market. Functions of the FX Market Chapter 4 - The Foreign Exchange Market Market Structure and Roles Volume and distribution by Country, Currencies Who trades with Whom Introduction to different kinds of Foreign Exchange contracts Spot,

More information

The foreign exchange market operates 24 hours a day and as a result it

The foreign exchange market operates 24 hours a day and as a result it CHAPTER 5 What Are the Best Times to Trade for Individual Currency Pairs? The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market

More information

CURRENCY INDICES FTSE PUBLICATIONS. FTSE Cürex FX Index Series.

CURRENCY INDICES FTSE PUBLICATIONS. FTSE Cürex FX Index Series. CURRENCY INDICES FTSE PUBLICATIONS FTSE Cürex FX Index Series. BEIJING BOSTON DUBAI HONG KONG LONDON MILAN MUMBAI NEW YORK PARIS SAN FRANCISCO SHANGHAI SYDNEY TOKYO FTSE FTSE Group ( FTSE ) is a world-leader

More information

Introduction to Foreign Currency Exchange

Introduction to Foreign Currency Exchange Introduction to Foreign Currency Exchange Introduction to Foreign Currency Exchange In the most basic of terms, currency exchange (also known as foreign exchange, forex or FX) is where you swap one currency

More information

Daily FX Focus. 31-Dec-2014

Daily FX Focus. 31-Dec-2014 Australia FX Pick:AUD/USD Nov private sector credit rose 5.9% YoY, as expected. AUD/USD was consolidating in a range of 0.8122-0.8203 levels. AUD/USD s short-term support is at 0.8070, and resistance is

More information

Dual Currency Placement

Dual Currency Placement Dual Currency Placement Dual Currency Placement If you have international financial interests and are prepared to accept a currency risk in exchange for the opportunity to earn a potential return, a Dual

More information

Minimum Australia 0.10% AUD $7.00

Minimum Australia 0.10% AUD $7.00 CMC Markets s Schedule for CFD trades executed as a client introduced by Rivkin Securities Pty Ltd to CMC Markets are outlined below. These rates are current at the time of this email however may be subject

More information

Chapter 4.1. Intermarket Relationships

Chapter 4.1. Intermarket Relationships 1 Chapter 4.1 Intermarket Relationships 0 Contents INTERMARKET RELATIONSHIPS The forex market is the largest global financial market. While no other financial market can compare to the size of the forex

More information

Transaction Cost. AETOS Capital Group (UK) Limited. May 2016 V20160503

Transaction Cost. AETOS Capital Group (UK) Limited. May 2016 V20160503 AETOS Capital Group (UK) Limited May 2016 V20160503 Product Symbol Tick Value Swap Rate - Swap Rate - LONG 2 SHORT 2 Typical Margin Spread 3 FOREX Australian Dollar vs U.S. Dollar AUDUSD 10.0USD 0.50%

More information

Phone: 1800 886 514 (Press '1' for Trade Desk or '2' for Enquiries)

Phone: 1800 886 514 (Press '1' for Trade Desk or '2' for Enquiries) POPULAR MARKETS Market Name Brackets = Out of Hours Spread 24hr Fixed Spread Contract Value per Index Point/Pip Margin per Unit Trade Per Phone: 1800 886 514 AUD/USD 0.8 (0.8) $1 0.50% 0.0001 Open Monday

More information

Evolution of Forex the Active Trader s Market

Evolution of Forex the Active Trader s Market Evolution of Forex the Active Trader s Market The practice of trading currencies online has increased threefold from 2002 to 2005, and the growth curve is expected to continue. Forex, an abbreviation for

More information

The Foreign Exchange Market. Role of Foreign Exchange Markets

The Foreign Exchange Market. Role of Foreign Exchange Markets The Foreign Exchange Market Role of the foreign exchange markets Foreign exchange (FX) basics» Terminology» Types of contracts Organization and institutional features» Actors - brokers, dealers» Segments

More information

Slides for Krugman and Obstfeld Chapter 13

Slides for Krugman and Obstfeld Chapter 13 Slides for Krugman and Obstfeld Chapter 13 Alan G. Isaac American University 2010-09-10 Preview Introduction to Exchange Rates Introductory Concepts International Financial Markets Basics exchange rate

More information

Dual Currency Investment. Product Sheet

Dual Currency Investment. Product Sheet Dual Investment Product Sheet 2 Dual Investment Product Sheet This Product Sheet must be read in conjunction with the Dual s and Conditions and the Dual Investment Mandate which contains a Product Checklist

More information

Please Note, the Predictive Franklin Volatility Gauge is analyzing the target currency pair against the US Dollar Index (USDX).

Please Note, the Predictive Franklin Volatility Gauge is analyzing the target currency pair against the US Dollar Index (USDX). Forex Trading Radar Daily Forecast Please Note, the is analyzing the target currency pair against the US Dollar Index (USDX). Probability Currency Price Range Lower Range Mid-Range Upper Range EURUSD 5.83%

More information

International Academy of Exchange Trading. Lesson 4: Orders

International Academy of Exchange Trading. Lesson 4: Orders Contents Lesson 1: All you need is... Lesson 2: Forex lowdown Lesson 3: Leverage (a little help from your friends) Lesson 5: A beginner s guide to technical analysis Lesson 6: Technical indicators Lesson

More information

96 97 98 99 00 01 02 03 04 05 06 07 08* FDI Portfolio Investment Other investment

96 97 98 99 00 01 02 03 04 05 06 07 08* FDI Portfolio Investment Other investment Chartbook Contact: Sebastian Becker +49 69 91-3664 Global Risk Analysis The unwinding of Yen carry trades Some empirical evidence 3 2 1-1 -2-3 -4 October 31, 28 Many years before the sub-prime crisis hit

More information

Good for business: get your forex transactions on track

Good for business: get your forex transactions on track Companies Foreign currencies Good for business: get your forex transactions on track Do you want to hedge foreign currency risks or invest in forex? A bank that takes your needs into account and provides

More information

Session #1 Building a Trading Plan

Session #1 Building a Trading Plan Session #1 Building a Trading Plan Legal Disclosure Trading Currencies may involve high risk and, potentially, the loss of any funds invested. Investment information provided may not be appropriate for

More information

THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS

THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS ORASTEAN Ramona Lucian Blaga University of Sibiu, Romania Abstract: This paper exposes

More information

Forex Pair Performance Strength Score

Forex Pair Performance Strength Score Issue 50 Wednesday, September 11, 2013 Forex Pair Performance Strength Score Michael Burke Vice-president of Client Training and Education TSLabs@TradeStation.com Features Studies/Files Included: Focus:

More information

The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs

The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs Ikhlaas Gurrib Abstract The paper looks at the effects of Minimum Bid Rate on three major currency pairs namely the Australian

More information

1. Debit the account specified by the Customer for the amount agreed to for the purchase of the foreign currency;

1. Debit the account specified by the Customer for the amount agreed to for the purchase of the foreign currency; Foreign Exchange FX Direct - User Guide RULES OF OPERATION The FX Direct Service is provided by Royal Bank of Canada (the Bank). A) When Does a Foreign Exchange Deal Exist? A valid and binding transaction

More information

Foreign Exchange Market: Chapter 7. Chapter Objectives & Lecture Notes FINA 5500

Foreign Exchange Market: Chapter 7. Chapter Objectives & Lecture Notes FINA 5500 Foreign Exchange Market: Chapter 7 Chapter Objectives & Lecture Notes FINA 5500 Chapter Objectives: FINA 5500 Chapter 7 / FX Markets 1. To be able to interpret direct and indirect quotes in the spot market

More information

Contents. Introduction To Volopa. Bank To Bank. The Volopa Lifestyle Card. Lifestyle Card In Use. How Your Money Is Managed. Manage Your Money Online

Contents. Introduction To Volopa. Bank To Bank. The Volopa Lifestyle Card. Lifestyle Card In Use. How Your Money Is Managed. Manage Your Money Online VOLOPA SOLUTIONS Contents Introduction To Volopa Bank To Bank The Volopa Lifestyle Card Lifestyle Card In Use How Your Money Is Managed Manage Your Money Online Branded Cards & Partnership About Volopa

More information

THE XFOREX. Mini E-book Guide for Forex Beginners. Currency Trading. Guide

THE XFOREX. Mini E-book Guide for Forex Beginners. Currency Trading. Guide THE XFOREX Mini E-book Guide for Forex Beginners Currency Trading Guide XForex has prepared for you an exclusive sneak peek into our E-book. The Mini E- book is designed to provide you with an overall

More information

CURRENCY PAIRS GUIDE

CURRENCY PAIRS GUIDE CURRENCY PAIRS GUIDE GLOBAL Trading in the foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals. FXDD provides this information as an educational

More information

ActTrader Forex Trading Guide

ActTrader Forex Trading Guide ActTrader Forex Trading Guide If this is your first time coming across the online Forex market, then you have come to the right place! This guide will provide you with the basic knowledge, tools and techniques

More information

The Foreign Exchange Markets COPYRIGHTED MATERIAL

The Foreign Exchange Markets COPYRIGHTED MATERIAL 1Part The Foreign Exchange Markets COPYRIGHTED MATERIAL 1Chapter The FOREX Landscape Introduction What Is FOREX? Foreign exchange is the simultaneous buying of one currency and selling of another. Currencies

More information

CROSS PAIRS CURRENCY GUIDE

CROSS PAIRS CURRENCY GUIDE CROSS PAIRS CURRENCY GUIDE AUD/CAD Australia/Canada 1.0781/0.9920 84.3 AUD/USD, AUD/CHF, USD/CAD AUD/CAD Daily Chart from January 1, 2012 to December 31, 2012 on the FXDD Swordfish Platform. 1.076 1.064

More information

Galvan Derivative Trading - CFD Market Information Sheets

Galvan Derivative Trading - CFD Market Information Sheets Galvan Derivative Trading - CFD Market Information Sheets Effective from: 28th July 2008 Contents Introduction 1 Indices 2 Shares 3 Sectors 4 Currencies 5 Metals 6 Commodities 7 Bonds 8 Interest rates

More information

Over-the-counter (OTC) options market conventions

Over-the-counter (OTC) options market conventions Over-the-counter (OTC) options market conventions This article details the conventions used for Over the Counter options1. These conventions are important; as a very substantial amount of traded derivatives

More information

U.S. Dollar Index Contracts

U.S. Dollar Index Contracts U.S. Dollar Index Contracts FAQ June 2015 What is the Dollar Index? The U.S. Dollar Index is a geometrically-averaged calculation of six currencies weighted against the U.S. dollar. The U.S. Dollar Index

More information

FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574

FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574 FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574 Date of Issue: 19 February 2014 INDEX 1. GENERAL INTRODUCTION 4 1.1 Important Information 4 1.2 Purpose

More information

How To Consistently Make $900 - $9,000 in 48 Hours or Less

How To Consistently Make $900 - $9,000 in 48 Hours or Less Forex & Gold Trading Bootcamp Break-Out Session How To Consistently Make $900 - $9,000 in 48 Hours or Less CHEAT & ACTIVITY SHEET MARK SO (THE HANDSOMEST FOREX TRADER THAT EVER EXISTED ;-) MARK SO (THE

More information

Russian RUB FX spot & derivatives markets in 2014

Russian RUB FX spot & derivatives markets in 2014 Russian RUB FX spot & derivatives markets in 2014 Dmitry Piskulov, Ph.D. (econ.) Chairman of NFEA Board; Member of Monetary Policy Council of Association of regional banks Russia Moscow, 20 November 2014

More information

How to Trade Forex. Chris Marchalleck Market analyst for ForexTraders.com

How to Trade Forex. Chris Marchalleck Market analyst for ForexTraders.com How to Trade Forex By Chris Marchalleck Market analyst for ForexTraders.com Published by WisdomeBooks.com Wisdom ebooks is a large directory of ebooks with many being available for free download. There

More information

MODULE 4. Guidance to completing the Market Risk module of BSL/2

MODULE 4. Guidance to completing the Market Risk module of BSL/2 MODULE 4 Guidance to completing the Market Risk module of BSL/2 Market Risk Introduction This guidance outlines the Commission s reporting requirements for calculating how much capital should be held by

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Chatper 34 International Finance - Test Bank MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The currency used to buy imported goods is A) the

More information

Forex Trading Guide & Tutorial For Beginner

Forex Trading Guide & Tutorial For Beginner Forex Trading Guide & Tutorial For Beginner Copyright FCMarket.com Website : http://www.fcmarket.com Email : info@fcmarket.com WARNING : You may not modify, copy, distribute, display, reproduce, publish,

More information

THE AUSTRALIAN FOREIGN EXCHANGE MARKET

THE AUSTRALIAN FOREIGN EXCHANGE MARKET The Reserve Australian Bank Foreign of Australia Exchange Bulletin Market May 1993 THE AUSTRALIAN FOREIGN EXCHANGE MARKET This article reviews recent developments in the Australian foreign exchange market.1

More information

This Is Not A Free Ebook

This Is Not A Free Ebook By Mark McRae www.surefire-forex-trading.com This Is Not A Free Ebook Copyright Mark McRae and www.surefire-forex-trading.com Reproduction or translation of any part of this work by any means, electronic

More information

Chapter 5. The Foreign Exchange Market. Foreign Exchange Markets: Learning Objectives. Foreign Exchange Markets. Foreign Exchange Markets

Chapter 5. The Foreign Exchange Market. Foreign Exchange Markets: Learning Objectives. Foreign Exchange Markets. Foreign Exchange Markets Chapter 5 The Foreign Exchange Market Foreign Exchange Markets: Learning Objectives Examine the functions performed by the foreign exchange (FOREX) market, its participants, size, geographic and currency

More information

Chapter 1.3. Fundamentals Make Currency Pairs Move

Chapter 1.3. Fundamentals Make Currency Pairs Move Chapter 1.3 Fundamentals Make Currency Pairs Move 0 Contents FUNDAMENTALS MAKE CURRENCY PAIRS MOVE The key to making money in the Forex is understanding what makes currency pairs move. Ultimately, it is

More information

Lower Target Target Upper Target

Lower Target Target Upper Target Forex Trading Radar Daily Forecast or improper use of this informational Prospectus by any user. Please visit https:///disclosure-.html for Full Disclosure. December 2, 2015 Please Note, the FGC Dollar

More information