forex basic

1. ForexBasics of Forex & Online Trading
Presentation by: Jerry Suppan - Visionworks Japan ©2011

2. Forex
Basics of FX & Online Trading

3. Forex ?

4. Forex ?
• FX

5. Forex ?
• FX
• Foreign Exchange
Market

6. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market

7. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market
• Global, Decentralized

8. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market
• Global, Decentralized
• Buy, sell, exchange
and speculate

9. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market
• Global, Decentralized
• Buy, sell, exchange
and speculate
• Simultaneous
Exchange

10. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market
• Global, Decentralized
• Buy, sell, exchange
and speculate
• Simultaneous
Exchange
• $ 2 Trillion USD

11. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market
• Global, Decentralized
• Buy, sell, exchange
and speculate
• Simultaneous
Exchange
• $ 2 Trillion USD
• 24 hours

12. Why Forex ?

13. Why Forex ?

14. Why Forex ?

15. Why Forex ?

16. Why Forex ?
• Business Transactions

17. Why Forex ?
• Business Transactions
• Exploit Volatility

18. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate

19. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit

20. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit
• Anyone Can Do

21. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit
• Anyone Can Do
• Instant Gratification

22. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit
• Anyone Can Do
• Instant Gratification
• (or regrets)

23. Currencies

24. Currency Pair

25. Currency Pair
• Two Currencies Comprise EXCH. Rate

26. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange

27. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold

28. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold
• Ex. USD/JPY

29. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold
• Ex. USD/JPY
• Base Currency - USD

30. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold
• Ex. USD/JPY
• Base Currency - USD
• Counter Currency - JPY

31. Currency Pair

32. PiP ?

33. PiP ?
• Percentage in Point

34. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation

35. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001

36. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal

37. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal
• Sometimes 2 decimals (i.e. JPY)

38. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal
• Sometimes 2 decimals (i.e. JPY)
• 82.19 => 82.20 (= 1 pip)

39. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal
• Sometimes 2 decimals (i.e. JPY)
• 82.19 => 82.20 (= 1 pip)

40. SPREAD

41. SPREAD
• Broker’s profit

42. SPREAD
• Broker’s profit
• NO Commission

43. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’

44. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

45. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

46. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

47. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

48. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

49. Trade Tools
Transaction Components

50. Tools
Lot Size

51. Tools
Lot Size

52. Tools
Lot Size

53. Tools
Lot Size

54. Tools
Lot Size

55. Tools
Leverage

56. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

57. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

58. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

59. Tools
50:1
100:1
200:1
400:1
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

60. Tools
50:1
100:1
200:1
400:1
Leverage
Multiplication Factor of
your money working for you.
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

61. Margin
Tools

62. Margin
Tools
• Directly Related to
Leverage

63. Margin
Tools
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin

64. Margin
Tools
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin
• 100:1 Leverage

65. Margin
Tools
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin
• 100:1 Leverage
• 1unit of capital =
margin requirement

66. Margin
Tools
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin
• 100:1 Leverage
• 1unit of capital =
margin requirement

67. Margin x Leverage
Tools

68. Margin
Margin x Leverage
Tools

69. Margin
Margin x Leverage
Tools

70. Margin 50:1
100:1
200:1
400:1
Margin x Leverage
Tools

71. Margin 50:1
100:1
200:1
400:1
Margin x Leverage
Tools
Lot Size

72. Margin 50:1
100:1
200:1
400:1
Margin x Leverage
Tools
Lot Size

73. Margin 50:1
100:1
200:1
400:1
Margin x Leverage
Tools
Lot Size

74. Margin 50:1
100:1
200:1
400:1
Margin x Leverage
Tools
Lot Size

75. Margin 50:1
100:1
200:1
400:1
Margin x Leverage
Tools
Lot Size

76. Margin 50:1
100:1
200:1
400:1
Margin x Leverage
Tools
Lot Size

77. Types
Charts

78. Types
Charts

79. Line
Types
Charts

80. Line
Types
Charts

81. Line
Bar
Types
Charts

82. Line
Bar
Types
Charts

83. Line
Bar
Candle stick
Types
Charts

84. Candlestick Chart

85. Candlestick Chart

86. Candlestick OHLC
Anatomy of a Japanese Candle Stick

87. Candlestick Intervals
time intervals
Open
High
Low
Close
open
close

88. Candlestick Intervals
time intervals
Time Intervals
1 minute
5 minutes
15, 30 minutes
1-hour
4-hour
Daily
Weekly
Monthly
Open
High
Low
Close
open
close

89. Candlestick
Patterns & Signals

90. Candlestick
Patterns & Signals

91. Candlestick
Patterns & Signals
Doji

92. Candlestick
Patterns & Signals
Doji

93. Candlestick
Patterns & Signals
Doji

94. Candlestick
Patterns & Signals
Doji

95. Strategies

96. Strategies
Limit & Stop Orders, Hedging
GBP/JPY

97. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50

98. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50

99. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50
Limit Order
Sell 1 lot
GBP @ 127.25

100. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50
Limit Order
Sell 1 lot
GBP @ 127.25

101. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50
Limit Order
Sell 1 lot
GBP @ 127.25

102. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50
Limit Order
Sell 1 lot
GBP @ 127.25
Stop Loss Order
Sell 1 lot
GBP @ 125.50

103. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50
Limit Order
Sell 1 lot
GBP @ 127.25
Stop Loss Order
Sell 1 lot
GBP @ 125.50

104. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50
Limit Order
Sell 1 lot
GBP @ 127.25
Stop Loss Order
Sell 1 lot
GBP @ 125.50

105. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50
Limit Order
Sell 1 lot
GBP @ 127.25
PROFIT:
0.75 JPY
(75 pips)
x Lot Size
Stop Loss Order
Sell 1 lot
GBP @ 125.50

106. Strategies
Hedging
GBP/JPY

107. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

108. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

109. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22
Sell 1 lot
GBP @ 127.25

110. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22
Sell 1 lot
GBP @ 127.25

111. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22
Sell 1 lot
GBP @ 127.25
Sell JPY @ 127.22

112. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22
Sell 1 lot
GBP @ 127.25
Sell JPY @ 127.22

113. Broker Selection
Setting Up Online

114. Broker Selection
Setting Up Online
Think..

115. Broker Selection
Setting Up Online
Think..
Global

116. Broker Selection
Setting Up Online
Think..
Global
Features

117. Broker Selection
Setting Up Online
Think..
Global
Features
Reliability

118. Broker Selection
Setting Up Online
Think..
Global
Features
Reliability
Speed of Execution

119. Broker Selection
FX Solutions, Australia

120. Broker Selection
FX Solutions, Australia

121. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed

122. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services

123. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services

124. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services
Precious Metals
Spot Tradable

125. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services
Precious Metals
Spot Tradable

126. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services
Precious Metals
Spot Tradable
http://www.fxsolutions.com.au/

127. Broker Selection
121 Securities, Japan

128. Broker Selection
121 Securities, Japan

129. Broker Selection
121 Securities, Japan
Demo Trading

130. Broker Selection
121 Securities, Japan
Demo Trading FX Robot Trading

131. Broker Selection
121 Securities, Japan
Demo Trading FX Robot Trading
Various
Accounts

132. Broker Selection
121 Securities, Japan
http://www.121sec.com/index.html
Demo Trading FX Robot Trading
Various
Accounts

133. Broker Selection
Exness - St. Petersburg, Russia

134. Broker Selection
Exness - St. Petersburg, Russia

135. Broker Selection
Exness - St. Petersburg, Russia

136. Broker Selection
Exness - St. Petersburg, Russia

137. Broker Selection
Exness - St. Petersburg, Russia

138. Broker Selection
Exness - St. Petersburg, Russia

139. Broker Selection
Exness - St. Petersburg, Russia
https://www.exness.com/

140. Trading Platforms

141. Trading Platforms

142. Trading Platforms
FX Solutions

143. Trading Platforms
FX Solutions
•Pro
•Web
•Mobile
•AccuCharts

144. Trading Platforms
FX Solutions
Global Use
•Pro
•Web
•Mobile
•AccuCharts

145. Trading Platforms
Considerations

146. Trading Platforms
Considerations
•Windows

147. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms

148. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac

149. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based

150. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone

151. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface

152. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface
•Ease-of-Use

153. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface
•Ease-of-Use
•Speed of Execution

154. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface
•Ease-of-Use
•Speed of Execution

155. Resources

156. Resources

157. Resources
FX Terminology

158. Resources
Schools
FX Terminology

159. Resources
Schools
FX Terminology
Tutorials

160. Resources
Chart Patterns
Schools
FX Terminology
Tutorials

161. Resources
Chart Patterns
Schools
FX Terminology
Trade Strategy
Tutorials

162. Resources
Trade Platform Tutorials
Chart Patterns
Schools
FX Terminology
Trade Strategy
Tutorials

163. Resources
Trade Platform Tutorials
Demo Trading
Chart Patterns
Schools
FX Terminology
Trade Strategy
Tutorials

164. Resources
Trade Platform Tutorials
Demo Trading
Forum Exchange
Chart Patterns
Schools
FX Terminology
Trade Strategy
Tutorials

165. Resources
Trade Platform Tutorials
Demo Trading
Forum Exchange
Chart Patterns
Schools
FX Terminology
Trade Psychology
Trade Strategy
Tutorials

166. Resources
www.investopedia.com/

167. Resources - BabyPips

168. Resources - BabyPips
Baby Pips School

169. Resources - BabyPips
Baby Pips School
Text

170. Resources - BabyPips
Baby Pips School

171. Resources
Baby Pips School - Graduation

172. Resources
Baby Pips School - Graduation

173. Resources
Baby Pips School - Graduation

174. Resources
Baby Pips School - Graduation
No Holy
Grail!

175. Resources
Baby Pips @ Facebook

176. Other Pips

177. Resources
http://aboutcurrency.com/
www.goforex.net/

178. Demo Account
• Virtual Money
• Simulate
• No Risks (= NO gain)
• Gauge Ability

179. Demo Account

180. FX Trading Alternatives

181. Advanced Trading
Automated FX Robot
✦Robot is your friend
✦Works for you
✦Auto Entry/Exit Strategies
✦Arbitrage
✦Scalping
✦Frequency - 1, 2 ... to many
✦Speed - Execution rapid.

182. ✦Purchase (not cheap)
✦Market Conditions Change
✦Robot Tune Ups
✦Experienced Traders
Advanced Trading
Automated FX Robot

183. Doomo Arigatoo, Mr. Robotto!
Advanced Trading
Automated FX Robot
Mr. Robotto is your friend in Trading

184. Trade Alternatives
FX Robotic Trading Application by Proxy
✦Advantages:
✦No need to purchase
✦No knowledge
✦No emotionalism
✦No time lost
✦Limited risk
✦Disadvantage
✦50% of profits only
✦Initial Capital Rqmt.

185. Trade Alternatives
Proxy FX Robotic Trading

186. Considerations
• Reward to Risk Ratio
• Example: 3:1 in 10
trades
• Winners / Losers Ratio
• Demo Trade, First!
• Resources

187. Q&A
Presentation by: Jerry Suppan - Visionworks Japan ©2011