What is FOREX?• The Foreign Exchange market, also referred to as"Forex" or "Retail Forex“ or "FX"• "Spot FX" or just "Spot" is the largest financialmarket in the world, with a volume of more than $6trillion a day.• If you compare that to the $50 billion a day volumethat the New York Stock Exchange trades, you caneasily see how enormous the Foreign Exchange reallyis.• It actually equates to more than three times thetotal amount of the stocks and futures marketscombined! Forex rocks!
Oooh, the NYSE looks so puny compared to forex! It doesnt stand a chance!
The currency market is over 53 times BIGGER! It is HUGE! But hold yourhorses, theres a catch!
What is Traded? Major Currencies USD United States Dollar EUR Euro Zone Members Euro JPY Japan Yen GBP Great Britain Pound CHF Switzerland Franc CAD Canada Dollar AUS Australia Dollar NZD New Zealand DollarForex currency symbols are always three letters, where the first two letters identify thename of the country and the third letter identifies the name of that country’s currency.
Currencies Are Traded in PairsForex trading is the simultaneous buying of one currency and sellinganother.Imagine each pair constantly in a "tug of war" with each currency on its own side ofthe rope. Exchange rates fluctuate based on which currency is stronger at themoment.
Major Currency Pairs The currency pairs listed below are considered the "majors“Pair Countries FX Geek SpeakEUR/USD Euro zone / United States "euro dollar"USD/JPY United States / Japan "dollar yen"GBP/USD United Kingdom / United States "pound dollar"USD/CHF United States/ Switzerland "dollar swissy"USD/CAD United States / Canada "dollar loonie"AUD/USD Australia / United States "aussie dollar"
Market Size and LiquidityThe forex market is considered an Over-the-Counter (OTC), or "Interbank", market due to thefact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.
The Dollar is King• The United States economy is the LARGEST economy in the world.• The U.S. dollar is the reserve currency of the world.• The United States has the largest and most liquid financial markets in the world.• The United States has a super stable political system.• The United States is the worlds sole military superpower.
Advantages of Forex with Admiral Markets Leverage No fixed lot sizeNo commissions No middlemenLow transaction costs A 24-hour market High Liquidity. No one can corner the market
Market PlayersThe Super Banks Large Commercial Companies The SpeculatorsGovernments and Central Banks 11
In general, the exchange rate of a currency versusother currencies is a reflection of the condition of thatcountrys economy, compared to the other countrieseconomies.• The Forex market is considered an Over-the-Counter(OTC) or Interbank‘ market.• The entire market is run electronically, within anetwork of banks, continuously over a 24-hour period.• Until the late 1990s, only the "big guys" could playthis game.
• Forex was originally intended to be used by bankersand large institutions - and not by us, retail customers.However, because of the rise of the Internet and globaleconomy, we, the retail investors are an important partof all markets.• Admiral Markets is now able to offer trading accountsto retail traders like us.• All you need to get started is a computer, an Internetconnection, and the information contained within thissite http://www.admiralmarkets.in/
Trading Sessions• Now that you know what forex is, why you should trade it, and who makes up the Forex market, its about time you learned when you can trade. Yes, it is true that the forex market is open 24 hours a day, but that doesnt mean its always active the whole day.• You can make money trading when the market moves up,• And believe us, there will be times when the market is as still as the victims of. This lesson will help determine when the best times of the day are to trade. 14
Market HoursTime zone ISTSYDNEY OPEN 6:00 AMSYDNEY CLOSE 3:00 PMTOKYO OPEN 7:00 AMTOKYO CLOSE 4:00 PMLONDON OPEN 12:30 AMLONDON CLOSE 9:30 PMNEWYORK OPEN 6:30 PMNEWYORK CLOSE 2:30 AM
Best Days of the Week to TradeBelow is a chart of average pip range for the major pairs for each day of the week:
Worst Times to Trade:• Sundays - everyone is sleeping or enjoying their weekend!• Fridays - liquidity dies down during the latter part of the U.S. session.• Holidays - everybody is taking a break.• Major news events - you dont want to get whipsawed!• During American Idol, the NBA Finals, or the Superbowl.
How You Make Money in ForexEUR/USD 0.10 10,000 1$ 0.20 20,000 2$ 0.30 30,000 3$ 0.50 50,000 5$ 0.60 60,000 6$ 0.80 80,000 8$ 1.00 1,00,000 10$ 3.00 3,00,000 30 $ 5.00 5,00,000 50$ 18
1) Commodities market• Oil 2) Currency Market(Forex)• Gold • Largest market in the world• Silver • Open 24h a day, 5 days a week.• Industrial Commodities• Soft Commodities Admiral-Trader3) Equities Market• Stocks and Bonds (stocks of US companies, bonds from the US and German markets);• Contracts for indices: USA, UK, France, Tokyo, Warsaw,India and many more. 19
Market Correlations (commodities - example) Commodities are quoted in U.S. dollars, thus theweakening of the U.S. currency increases the interest in commodities, because they are cheaper forinvestors having other currencies, therefore prices of commodities go up because of higher demand. 20
Most Traded currencies of all is EUR /USD, being 86% of all transactions.
Margin (initial deposit)• Margin blocked when opening a transaction;• It allows the use of leverage;• Margin amount (standard): 1% of nominal for currencies 2% of nominal for indices 3% of nominal for commodities 7% of nominal for equities Margin allows you to open a large number of trades with a smallcommitment of capital. 23
Free “Demo” Accounts, News, Charts, and Analysis• Admiral Markets offer demo accounts to practice trading, along with breaking Forex news and charting services. All free!• These are very valuable resources for EAGER TO LEARN traders who would like to hone their trading skills with play‘ money before opening a live trading account and risking real money.
Demo Trading• You can open a demo account for free with Admiral Markets. This account has the full capabilities of a "real“ account.• Why is it free? Its because the Admiral Markets wants you to learn the ins and outs of their trading platform, and have a good time trading without risk, so youll fall in love with them and deposit real money.• The demo account allows you to learn about the Forex markets and test your trading skills with ZERO risk. 26.04.2012 25
You can be a winner at ‘Admiral Markets’, but as in all other aspects of life, it will take hard work, dedication, a little luck, a lot of common sense, and good judgment ’’ Thanks for your attention Admiral Markets Ashwin Peswani +91-9503026000 email@example.com 26