Forex is a $5 trillion-per-day market! That’s an insane amount of money changing hands EVERY day. And if you know exactly where to look and what to do you can bank fast currency profits…

1. Currency Futures Trade Money Make Money
25 September 2014
Greg Kangleas

2. Money
 What is Money?
 Def: Something of value, an exchange and a store
of wealth
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3. History of Money
 Barter
 9000 – 6000 BCE Cattle
 1200 BCE - Cowrie Shells
 1000 BCE - Bronze and Copper
 500 BCE - Modern Coinage
 118 BCE - Leather Money
 806 -Paper Currency
 1535 Wampum beads made of
clamshells
 1930 - End of Gold Standard
 Present - Paper; Electronic;
cryptocurrency (Bitcoin)
 Cattle
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4. 4
Lets trade in the international
language, Money

5. 5
The Forex advantage
 What is the Forex market?
 It’s the trade arena to trade currencies
 Trades 24 hr. a day for 5 or some trade for nearly 7
days a week
 Daily turnover of 5 Trillion USD / day
 Like the stock market where we trade shares, the
vegetable market, vegies
 We trade currencies, that is our product
 Over 100 currency pairs in the world

6. 6
The Forex advantage
 Uniformed throughout the world
 Liquidity
 Fair
 The majority of trade, 95% is executed by
speculators…you and I
 5% is actual commerce- industry, tourism
 Macro Economics – 5 to 6 pieces of
significant data/ month

7. 7
What effects the Forex market
 Macro Economic Data
 Interest rates
 A rise or an expectation of a rise in interest rates cause:
 Consumers spending less
 Retail sales slow
 Reduction in company profits
 Decline in share prices
 Higher unemployment
 The inverse is expected when interest rates are reduced
 Unemploymnt rates (employment rates)
 Inflation rate
 Political conflict
 A countries productivity – the GDP (Gross Domestic Product)

8. What effects the Forex market
 Macro Economic Data
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9. Forex
 Forex markets are used by importers/exporters, investors,
banks, central banks & speculators
 A typical forex trade involves a view (or demand for foreign
currency) in the direction of a forex ‘pair’.
 If the expectation is that the USD will weaken (depreciate)
against the EUR then the trader will buy the EUR (and sell the
USD).
 This is called buying the currency pair. In this case EURUSD

10. Exchange Rate
 The global forex market is a decentralised market that determines
the values of different currencies
 This means that there is no central depository like shares traded on a
stock exchange
 Exchange rates fluctuate as the supply and demand fluctuate :-
 An increase in supply or a decrease in demand shall cause the
value of the currency to depreciate (fall in value)
 An decrease in supply or in increase in demand shall cause the
value of the currency to appreciate (rise in value)

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Forex Terms
 PAIRS – Base currency is always on the left,
this is what we buy and sell
 SPREAD – Difference between the buying
price and selling price + comm
 PIPS- the last place after the decimal
point, normally the 4th decimal point. The
Yen is denoted at 2 decimal points
 MARGIN – this is the good will deposit
placed for the trade
 BID – The price a buyer is willing to buy at
 OFFER – The price a seller is willing to sell at

12. What are Currency Futures:
• Contracts that allow investors to trade an exchange rate for sometime into the future
• A futures contract gives the buyer exposure to the underlying asset immediately but
only has to pay a deposit as opposed to the full value of the transaction. If the buyer
keeps the contract until its expiry date, only then will the full value of the transaction
have to be funded by the purchaser.
• Buyers of Currency Futures (long), buy the Dollar’s and sell the Rand’s, i.e. You want
the Dollar to appreciate in value or the Rand to depreciate in value, example: $/R to
move from R10.00 to R10.50 (generally importers)
• Sellers of Currency Futures (short), sells the Dollar’s and buy the Rand’s, i.e. You want
the Dollar to depreciate in value or the Rand to appreciate in value, example: $/R to
move from R10.20 to R10.00 (generally exporters)

13. How are Currency Futures Priced:
• What makes up the price of a Currency Future (Forward)?
• = Spot price + forward points
• Spot price e.g. $/R10.3425 (bid) / $/R10.3435 (offer)
• Forward points (interest rate differential between today and expiry date)
• 300 points bid / 350 points offer
• Future price is 10.3725 (bid) / 10.3785 (offer)
• (10.3425 + 0.0300) (10.3435 + 0.0350)
• On the exchange we quote and trade the expiry date so the price will always
include the forward points

14. Currency contracts listed :
• Dollar/Rand
• Euro/Rand
• Pound/Rand
• Australian Dollar/Rand
• Japanese Yen/Rand
• Canadian Dollar/Rand
• Swiss Franc/Rand
• Chinese Renminbi/Rand
• Botswana Pula/Rand
• New Zealand Dollar/Rand
• Turkish Lira/Rand
• Rand Index (RAIN)

15. Live currency pricing

16. Dow Theory
 THE MARKETS DISCOUNT EVERYTHING
 All information, past, present and even future, is
discounted and reflected in the price of currency
pair
 THE MARKET TRADES IN 3 TRENDS/PHASES
 1. The Principle Trend - either bullish or bearish.
Upward trend is identified as several rallies
where the market makes successive higher
highs and higher lows.
Downward trend, several sell-offs where the
market makes successive lower lows and lower
highs.

17. Dow Theory
 UPTREND

18. Dow Theory
 Down Trend

19. Dow Theory
 3 PHASES OF THE PRIMARY TREND – Bull Market
 The Accumulation Phase – The start of the trend. Informed
investors accumulate when the market sentiment is in ‘doom &
gloom’ mode, near the end of a downtrend. Prices are
attractive and most bad news is priced into the market. This is
difficult to identify as most investors think that things will get
worse. Prices consolidate or flatten out, selling pressure start to
dissipate.
 Public Participation Phase – Negative sentiment start to
diminish, characterised by increased earnings and stronger
market data. Investors increase participation and accumulate
as conditions improve, sending prices higher. This phase is the
longer and this is were technical trend traders take long
positions.

20. Dow Theory
 The Excess Phase , also called the blowout phase -
Markets move higher on better than expected
earnings and peak economic data. The general
public now feels comfortable participating in the stock
market, convinced that the market is heading to Mars
and beyond. Buying frenzies occur and valuations go
out the window. The buyers in the first and second
phase start to liquidate their holdings in anticipation of
a downtrend.

21. Dow Theory
 3 PHASES OF THE PRIMARY TREND – Bear Market
 The Distribution Phase – This is the opposite to the
accumulating phase. Informed investors sell the
overbought market. Sentiment remains positive
and identifying this phase is difficult. Selling
pressure increases and is confirmed when a higher
high/low fails.
 Public Participation Phase – This phase is similar to
the bull participation phase whereas it lasts the
longest . Business conditions worsen confirming the
downtrend. Technical investors start dumping and
reversing position.
 The Panic Phase – This phase is characterised by
panic indiscriminate selling by mainly the
participants that entered during the excess phase.
When the situation looks the worst, the
accumulation phase begins repeating the cycle.

22. Lets recap
 The Forex market is the most liquid
 There are only 5/6 factors that
influence currencies
 Normal supply and demand rules
apply
 Forex is easy to trade
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23. TRADING TOOLS
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24. 24
Trading Platforms
Desktop Smart Phone
Tablet

26. 26
Trade Calculator
Forex Portfolio Calculator
Type in your portfolio value here R 100 000.00 Win
Are you going to use the 2% (recommended) rule? no Loss
What percentage of your portfolio do you want to risk? 5.00% AUD : ZAR
Amount you can risk per Forex trade (Rands) R 5 000.00 USD : ZAR
Choose which Currency Pair you're trading? -> AUD USD
Type of Trade
Entry Level here ->
Stop Loss level here ->
Take Profit Level Win/Loss Profit/Loss Portfolio %
Trade 1 Win R 7 168.15
0.8773
Pips risked in your Forex trade (Pips) Trade 2 Win R 7 168.15
Pips gained in your Forex trade (Pips) Trade 3 Win R 7 168.15
Risk in Term Currency $ -3.00
Trade 4 Loss R -5 001.04
Gain in Term currency $ 4.30
Trade 5 Loss R -5 001.04
Loss per 100 micro lots -R 33.56
Total P/L 11502.383
Gain per 100 micro lots
R 48.11
Risk to Reward ratio
-1.43
Maximum Micro lots you'll trade
149
calculator is only used to work out Micro lots (1000) if you'd like to trade normal maxi lots (100,000) talk to your broker…
7.17%
7.17%
7.17%
-5.00%
-5.00%
11.50%
0.8700
Fill in these two values
9.7500
11.1880
Long
0.8730

27. Trade discipline
 A trade consists of 3 orders
 Entry
 Stop loss
 Profit take

28. Lets Trade
 Login to your account
https://login.iress.co.za/logon/vunani
https://investor.iress.co.za
Username: vunanidemo@iressdemo
Password: 123

29. 29

30. Lets Recap
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We have the knowledge!
We have the instruments!
We have the tools!
We have the platform!
We have the plan!
We have the risk calculator!
We have the trade!
 ARE WE READY TO MAKE MONEY?

31. Where do I start?
 Opening an account is easy
 Decide on trading in a local account in Rands
and/or an offshore account in the currency of your
choice
R
 forex@vunaniprivateclients.co.za
 Trading Desk Vunani Private Clients 011 3842920/1/2/3/4

32. Local Vunani Velocity Forex account
 Electronically signed online Mandate
 http://vunaniprivateclients.co.za/trade/openanaccount.aspx
 Certified FICA documents required
 Copy of ID
 Proof of Residence
 Banking Details/statement
 Min R5000

33. Offshore Saxobank account
 Signed & initialled documents required:
 Individual Client Application Form
 Full Power of Attorney
 Letter of Appointment
 Specific Cash Management Mandate
 Copy of Passport
 Proof of residence
 Min $2500

34. 34
Need assistance
 forex@vunaniprivateclients.co.za
011 384 2924

35. Thank you
Greg Kangleas
Vunani Private Clients
151 Katherine Street
Sandown
Sandton
Dir: 011 3842924
forex@vunaniprivateclients.co.za