The foreign exchange market is a global decentralized market for trading currencies. It is the largest and most liquid financial market in the world, with over $5 trillion traded daily. The market consists of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. It operates 24 hours a day, with trading centered around financial centers around the world. Some key aspects of forex trading discussed in the document include currency pairs, pips, lots, leverage, and the bid/ask spread.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
This presentation is a comprehensive presentation of Forex Market. It starts with the history of this market from Pre Gold period, Bretton wood till current floating exchange mechanism and in Indian perspective FERA and FEMA. It then gives you an idea on size, width and extent of this market and post that it covers forex exchange, quotes, and numerical. Finally, it covers few topics like Trade Finance, LIBOR, Balance of Payment & Currency Swaps
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
This presentation is a comprehensive presentation of Forex Market. It starts with the history of this market from Pre Gold period, Bretton wood till current floating exchange mechanism and in Indian perspective FERA and FEMA. It then gives you an idea on size, width and extent of this market and post that it covers forex exchange, quotes, and numerical. Finally, it covers few topics like Trade Finance, LIBOR, Balance of Payment & Currency Swaps
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
A detail on forex market is being provided refering to global forex hours and the need of forex market. DAILY TURNOVER OF THE GLOBAL FOREIGN EXCHANGE. Indian forex market is also explaied with reference to usd inr movement. A brief technical analysis is also provided explaning the different chart types
Forex Tips by http://www.top-forex-broker.com. You can find some more useful article about forex in http://www.top-forex-broker.com/forex-articles.html
The aim of this presentation is to help build a better understanding of Forex trading and guide you through the necessary steps needed to become a responsible and successful trader in the foreign exchange market.
A detail on forex market is being provided refering to global forex hours and the need of forex market. DAILY TURNOVER OF THE GLOBAL FOREIGN EXCHANGE. Indian forex market is also explaied with reference to usd inr movement. A brief technical analysis is also provided explaning the different chart types
Forex Tips by http://www.top-forex-broker.com. You can find some more useful article about forex in http://www.top-forex-broker.com/forex-articles.html
The aim of this presentation is to help build a better understanding of Forex trading and guide you through the necessary steps needed to become a responsible and successful trader in the foreign exchange market.
The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is the largest financial market in the world, with over $1.2 trillion changing hands every single day. This paper is about trading and managing risk in that fast moving market.
The aim of this presentation is to help build a better understanding of Forex trading and guide you through the
necessary steps needed to become a responsible and successful trader in the foreign exchange market.
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…
"Dive into the world of forex trading with our comprehensive guide, 'Forex Trading Made Simple: A Beginner's Guide to Understanding the Currency Market.' Whether you're a novice trader or looking to enhance your forex knowledge, this article provides a clear and concise overview of the forex market. Discover the fundamentals of currency trading, from understanding currency pairs and exchange rates to exploring trading strategies and risk management techniques. Learn how to navigate the dynamic forex market with confidence and make informed trading decisions. With insights into the advantages and disadvantages of forex trading, along with practical tips for getting started, our guide equips you with the knowledge and skills needed to embark on your forex trading journey. Plus, we emphasize the importance of approaching forex trading responsibly, dispelling the notion of it being a get-rich-quick scheme. Whether you're seeking financial freedom or looking to diversify your investment portfolio, our article provides invaluable insights to help you succeed in the exciting world of forex trading. Don't miss out on this opportunity to unlock the potential of the currency market and take your trading to new heights."
INTERESTING Member Driven Strategies Based On Custom Indicators
INCREDIBLE In Depth Discussions
QUALITY Trading Education Regarding The Different Types Of Markets
MORE About Why Mentality, Risk Management And Discipline Are So Important
Forex Trading Program Concepts by Todd Hanson PhDTodd Hanson PhD
According to Todd hanson PhD, on Livetradesignals trading platform, you can establish ongoing relationships with other traders that want to share ideas and experiences.
https://www.fiverr.com/mastermentor/teach-you-forex-trading-in-1-hour
Simple and Easy way to learn Forex from a Pro Trader. Follow this guide and learn how to trade forex in an easy and fast manner. Becoming a succesful trader is just minutes away!
Learn step by step easy to follow video course below:
https://www.fiverr.com/mastermentor/teach-you-forex-trading-in-1-hour
: Enhancing Forex Trading Expertise with Baron Learning Pvt Ltdniteshbaronlearning
Baron Learning Pvt Ltd provides a comprehensive suite of educational services tailored to forex traders at all levels. Our programs are designed to help traders understand the fundamentals of forex trading, including market analysis, forex economics, risk management, and trading strategies.
Before diving into forex trading, educate yourself about the market, trading strategies, and risk management techniques. There are numerous online resources, courses, and books available for beginner traders.Selecting the right forex broker is crucial for your trading success. Look for a broker that is regulated, offers competitive spreads, provides a user-friendly trading platform, and offers educational resources and customer support.https://learningbaron.com
Before diving into forex trading, educate yourself about the market, trading strategies, and risk management techniques. There are numerous online resources, courses, and books available for beginner traders.Selecting the right forex broker is crucial for your trading success. Look for a broker that is regulated, offers competitive spreads, provides a user-friendly trading platform, and offers educational resources and customer support
Before diving into forex trading, educate yourself about the market, trading strategies, and risk management techniques. There are numerous online resources, courses, and books available for beginner tradersChoose a Reliable Broker: Selecting the right forex broker is crucial for your trading success. Look for a broker that is regulated, offers competitive spreads, provides a user-friendly trading platform, and offers educational resources and customer support.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
2. FOREIGN EXCHANGE MARKET
Foreign Exchange Market:-Foreign exchange
arises out of international trade .Foreign exchange is
the system or process of converting one national
currency into another, & transferring money from one
country to another” Paul Einzing
The foreign exchange market is the market in which
individuals firms & banks buy & sell foreign
currencies or foreign exchange.
3. FOREX
A global market where people trade money among
the major financial centers
FOREX= WORLD WIDE MARKET , where anyone
can participate largest most liquid market with $5.9
trillion per day traded.
It trading in currency trading & spot forex.
4. The foreign exchange market is unique
because of the following characteristics:
its huge trading volume representing the largest
asset class in the world leading to high liquidity;
its geographical dispersion;
its continuous operation: 24 hours a day except
weekends, i.e., trading from 22:00 GMT on
Sunday (Sydney) until 22:00 GMT Friday (New
York);
the variety of factors that affect exchange rates;
the low margins of relative profit compared with
other markets of fixed income; and
the use of leverage to enhance profit and loss
margins and with respect to account size.
5. Benefits in Forex markets
Commission –free trading
24 hours market liquidity
The ability to choose your own trading hours.
Being able to find profitable trades in both rising
and falling markets
execution quality & speed
better leverage
6. How will trade in forex market
White colored workers
Blue colored workers
Executives
House wife
students etc
7. Forex levels
First levels are tourists, importers, exporters,
investors etc,
second level are the commercial banks which act
as clearing houses between users & earners of
foreign exchange .
Third level are foreign exchange brokers. The
final level is central bank ,acts as seller or buyer
of last resort.
Four levels of transistors or participants can be
identified in foreign exchange markets.
8. According to the Bank for International Settlements the
preliminary global results from the 2013 Triennial Central Bank
Survey of Foreign Exchange and OTC Derivatives Markets
Activity show that trading in foreign exchange markets averaged
$5.3 trillion per day in April 2013. This is up from $4.0 trillion in
April 2010 and $3.3 trillion in April 2007. Foreign exchange
swaps were the most actively traded instruments in April 2013,
at $2.2 trillion per day, followed by spot trading at $2.0 trillion.
According to the Bank for International Settlements, as of April
2010, average daily turnover in global foreign exchange markets
is estimated at $3.98 trillion, a growth of approximately 20%
over the $3.21 trillion daily volume as of April 2007. Some firms
specializing on foreign exchange market had put the average
daily turnover in excess of US$4 trillion.
The $3.98 trillion break-down is as follows:
$1.490 trillion in spot transactions
$475 billion in outright forwards
$1.765 trillion in foreign exchange swaps
$43 billion currency swaps
$207 billion in options and other products
9. Basic terminology in forex market
LIQUIDITY
BID
ASK
STOP
LOSS
SHORT
LONG
PIP LOT
TAKE
PROFIT
CURRENCY
PAIR
LEVERAGE
TRADING
STRATEGY
EXPERT
ADVISOR
INDICATOR
TRADING
PLATFORM
10. LIQUIDITY
The degree of an asset's ability to be converted to cash at its
fair market price
For an asset, its liquidity is its ability to be bought or sold
without any discount or premium. Liquidity thus reflects the
amount and frequency the asset and traded. The more
something is bought and sold, an individual's ability to charge
premium or look for discounts lowers. However the less liquid
something is, the harder it will be for it to be bought or sold.
A market that is liquid means it has many trades and is
composed of many traders. The Forex market is extremely
liquid because hundreds of banks and millions of individuals
trade currencies everyday. In fact, nearly $4 trillion is
exchanged daily and this number is increasing as interest by
retail traders are expanding. Consequently, traders can trade
quickly with a click or two.
On the other end of the spectrum, real estate development is
an extremely illiquid market because it requires a lot of capital
and investments are made into physical form such as
buildings.
As a result you will find a bigger range of price offered for
11. BID PRICE
A two-way price quotation that indicates the best
price at which a security can be sold and bought
at a given point in time.
The bid price represents the maximum price that
a buyer or buyers are willing to pay for a security.
The Price You Can Sell Currency To The Dealer
12. ASK PRICE
The ask price represents the minimum price that
a seller or sellers are willing to receive for the
security.
A trade or transaction occurs when the buyer and
seller agree on a price for the security.
THE PRICE YOU CAN BUY CURRECNCY PAIR
FROM THE DEALER
The difference between the bid and asked prices,
or the spread, is a key indicator of the liquidity of
the asset - generally speaking, the smaller the
spread, the better the liquidity.
13. PIP: percentage in points
Currency code means 5 digit number in currency.
PIP:- Smallest price change for a currency
exchange rate & the 5th significant digit in the
code . It is smallest unit that a price can change
Most change can happen in 4 decimal places
some happens in 2, 3, or 5 decimal places
trading
14. pip
Your forex broker should let you know how many
decimal places for each currency pair.
Ex:- USD/CAD (Canadian dollars) based on 4
decimal places (0.0001).
USD/CAD moved from 1.0000 to 1.0001 : it has
moved 1 pip.
USD/CAD moved from 1.0001 to 1.0004 : it has
moved 3 pips
15. What is the difference between the
top pink line & the bottom line in
pips?
6
5
4
3
2
1
0
Series 1
Series 2
Series 3
0.97834
0.97805
0.97765
17. Long
In financial trading, a position is a binding
commitment to buy or sell a given amount
of financial instruments, such as securities,
currencies or commodities, for a given price.
Long position :-The buying of a security such as a
stock, commodity or currency, with the
expectation that the asset will rise in value.
In the context of options, the buying of an
currency pairs.
18. For example
Ex: an owner of shares in McDonald's Corp. is
said to be "long McDonald's" or "has a long
position in McDonald's.”
19. Short position
. The sale of a borrowed security, commodity or
currency with the expectation that the asset will
fall in value. Selling a currency pair
In the context of currency, it is the sale (also
known as "writing") of an currency pair
20. example,
For example, an investor who borrows shares of
stock from a broker and sells them on the open
market is said to have a short position in the
stock.
The investor must eventually return the borrowed
stock by buying it back from the open market. If
the stock falls in price, the investor buys it for less
than he or she sold it, thus making a profit.
21. Take profit
Take profit (T/P): the number of pips or price from
the currency price point where to close out their
current position for a profit.
An order used by currency traders specifying the
exact rate or number of pips from the current
price point where to close out their current
position for a profit. The rate deemed to be the
level where the trader wants to take a profit is
sometimes referred to as the "take-profit point".
22. As the name suggests, take-profit orders are used to
lock in profits in the event the rate moves in a
favorable direction.
For example, if you are long a currency pair position
and believe the price will rise to a certain level, but
are unsure what it will do beyond that level, placing a
take-profit order at that point will automatically close
out your position allowing you to lock in profit.
Example: Buy $100 worth of yen at 107.4 yen per
dollar = 100*107.40 = 10,740 yen
Place a take-profit order at 108.80. Price then rises
from 107.40 to 108.80 Take-profit order automatically
executed to sell $100 and buy 10,880 yen
Profit of 140 yen realized.
23. Stop loss
Sell a security when it reaches a certain price
used to limit an investor’s loss
24. T/P & S/L when you buy
6
5
4
3
2
1
0
Series 1
Series 2
Series 3
1.04885 T/P
1.04631 C/P
1.04275 S/P
25. T/p & S/P when you sell
6
5
4
3
2
1
0
Series 1
Series 2
Series 3
1.04885 S/P
1.04631 C/P
1.04275 T/P
26. LOT
Lot means minimum unit of trade.
A standard trading term referring to an order of
100,000 unit. the standard transaction size in a
forex transaction. Usually this is 10,000 currency
units, but may be 1,000 in mini-lots.
27. Currency pairs are usually traded in units of 100,000
(standard lots), 10,000 unit (mini lots) or 1,000
(micro lots) meaning buying / selling 100,000 of
the base currency while selling / buying the
equivalent number of units of the counter currency.
What is a mini-lot = 1/10 (10%) of the standard lot
size.
One pip of a currency pair based on USD= $1 when
trading a mini lot; $10 for a standard lot trade.
To calculate standard lot trade you multiple
0.0001/100 which equal to $10.
28. example
For example, if you open a long position of one
lot for EUR/USD for the ask price of 1.4000, you
are purchasing 100,000 Euro while, selling
140,000 USD.
A standard contract (one Lot) in which the USD is
the counter currency one pip will equal $10 ($1
for a mini lot). For all other pairs exact pip values
are slightly different and range from $8 to $10.
Use our Pip Calculator to see the current pip
value for all currency pairs.
29. Currency pair
GBP/USD = currency pair
Currency pair- quote and price structure for
currency traded in the forex market.
First currency = base currency
Second currency = quote currency or counter
currency.
30. How much quote currency is needed
to buy /unit of base currency
Ex: quoted USD/GBP=1.5
Purchase the pair , for every 1.5 British pounds
that you sell you purchase (receive)Us$1.
Sold the currency pair you would receive 1.5
British pounds for every US$1 you sell.
Ex: quoted Euro/USD=0.667
Purchase the price for every $0.677 dollars that
you sell ;you purchase 1Euro.
Sold the currency pair you would receive 1euro
for every Us$ 0.667 you sell
31. Currency rate
Ex: travelling to US to Swiss you have to
exchange .USD/CHF
Two rate shown one is the bid /ask
USD/CHF= 1.1569 ; 1.1571
bid ask
Means 1$= 1.1571CHF
32. LEVERAGE
LEVERAGE allows you to open trades that are
larger than the capital you trading account.
Ex:- $ 10,00,000 have been purchased through a
long USD?JPY position with a $ 50,000 a/c.
leverage balance is 20:1 .
Trading on margin can both positively and
negative affect your trading experience as both
profits and losses can be dramatically amplified.
33. Trading strategy
A trading strategy helps to determine when to get
into and get out a trade.
FX trading strategies:
1. Fundamental trading strategy
2. Technical trading strategy
34. Fundamental & Technical trading strategies
Fundamental trading strategy uses financial news to
predict the movement in currency bear like economic
indicator like GDP inflation etc
Technical trading strategy focus to strategic and
probability index helps to predict the future trends of
the currency with the movement of the currency bear
like moving average etc
35. Trading platform
Trading platform is a soft ware provided by broker
to trader.
36. Indicator
For a technical analyst: an indicator is a
mathematical calculation based on the currency
price and volume. The result is used to predict the
future prices.
For a fundamental analyst : an indicator could be
a measure which can be used to predict future
economic trends'. Common general economic
indicators are the unemployment rate , new
housing scheme by Govt WPI, CPI INDEX etc
38. Trend indicators
Trend indicators: by looking into the movement of
the trends you can decide on the level at which
can start trading , moving average parabolic SAR
and MACD are few examples. Usually trends are
done by charts.
39. Momentum indicator
These are considered to be the oscillating
indicators and are most clear cut in pin pointing
the over bought as well as the oversold position
.similarly they show the signals for any new trend.
RSI( relative strength index) CCI () are few
example.
40. Volume indicator
Price movement is very much dependent on the
volume of the traders. Generally the price
movement which is rooted from a high volume
gather a fairly stronger signer compared to one
which is inspired by the low volume.
Ex: force index, money flow index ease of
movement chikin money flow etc….
41. Volatility indicator
They normally look into the ranges that defines
the volume that lies beneath the movements and
the price behavior ex: average true range,
bollinger bands and envelopes.
42. Expect advisor
Trading software to help the currency trader with
Forex trading analysis and the execution of
trades.
44. The Spot Market
The spot market involves the immediate purchase
or sale of foreign exchange
Cash settlement occurs 1-2 days after the
transaction
Currencies are quoted against the US dollar
Interbank FX traders buy currency for their
inventory at the bid price
Interbank FX traders sell currency for their
inventory at the ask price
Bid price is less than the ask price
Bid-ask spread is a transaction cost
45. The Spot Market – Direct Quotes
US dollar price of 1 unit of foreign currency—$ are in the
numerator (foreign currency is priced in terms of dollars)
$/€ = 1.5000 (1€ costs $1.5000)
$/£ = 2.0000 (1£ costs $2.0000)
Currency changes
Suppose that today, $/€ = 1.5000 and in 1 month, $/€ = 1.5050
The $ has depreciated in value
Alternatively, the € has appreciated in value
Suppose that today, $/£ = 2.0000 and in 1 month, $/£ = 1.9950
The $ has appreciated in value
Alternatively, the £ has depreciated in value
46. The Spot Market – Indirect
Quotes
Foreign currency price of $1—$ are in the denominator (US
dollar is priced in terms of foreign currency)
€/$ = 0.6667 ($1costs €0.6667)
£/$ = 0.5000 ($1 costs £0.5000)
Currency changes
Suppose that today, €/$ = 0.6667 and in 1 month, €/$ = 0.6600
The $ has depreciated in value
Alternatively, the € has appreciated in value
Suppose that today, £/$ = 0.5000 and in 1 week, £/$ = 0.5050.
The $ has appreciated in value
Alternatively, the £ has depreciated in value
47. The Spot Market - Conventions
Denote the spot rate as S
For most currencies, use 4 decimal places in calculations
With exceptions: i.e. S(¥/$)=109.0750, but S($/¥)=0.009168
If we are talking about the US, always quote spot rates as the
dollar price of the foreign currency
i.e. as direct quotes, S($/€), S($/C$), S($/£), etc
Increase in the exchange rate the US dollar is depreciating
Costs more to buy 1 unit of foreign currency
Decrease in the exchange rate the US dollar is
appreciating
Costs less to buy 1 unit of foreign currency
48. The New York foreign exchange selling rates below apply to
trading among banks in amounts of $1 million and more, as quoted
at 4 p.m. Eastern time by Dow Jones Telerate Inc. and other sources .
Retail transactions provide fewer units of foreign currency per
dollar.
Special Drawing Rights (SDR) are based on exchange rates for
the U.S., German, British, French, and Japanese currencies. Source:
International Monetary Fund.
European Currency Unit (ECU) is based on a basket of community
currencies.
a-fixing, Moscow Interbank Currency Exchange.
EXCHANGE RATES
Country
Argentina (Peso)
Australia (Dollar)
Austria (Schilling)
Bahrain (Dinar)
Belgium (Franc)
Brazil (Real)
Britain (Pound)
30-Day Forward
90-Day Forward
180-Day Forward
Canada (Dollar)
30-Day Forward
90-Day Forward
180-Day Forward
Chile (Peso)
China (Renminbi)
Colombia (Peso)
Czech. Rep (Krouna)
Commercial rate
Denmark (Krone)
Ecuador (Sucre)
Floating rate
Finland (Markka)
France (Franc)
30-Day Forward
90-Day Forward
180-Day Forward
Germany (Mark)
30-Day Forward
90-Day Forward
180-Day Forward
Greece (Drachma)
Hong Kong (Dollar)
Hungary (Forint)
India (Rupee)
Indonesia (Rupiah)
Ireland (Punt)
Israel (Shekel)
Italy (Lira)
Currency
U.S. $ equiv. per U.S. $
Wed.
1.0012
.7805
.09043
2.6525
.03080
.9607
1.6880
1.6869
1.6843
1.6802
.7399
.7414
.7442
.7479
.002352
.1201
.0009985
....
.03662
.1663
....
.0002766
.2121
.1879
.1882
.1889
.1901
.6352
.6364
.6389
.6430
.004049
.1292
.006139
.02787
.0004233
1.6664
.3079
.0006483
Tues.
1.0012
.7902
.09101
2.6525
.03105
.9615
1.6946
1.6935
1.6910
1.6867
.7370
.7386
.7413
.7450
.002356
.1201
.0009985
....
.03677
.1677
....
.0002787
.2135
.1893
.1896
.1903
.1914
.6394
.6407
.6432
.6472
.004068
.1292
.006164
.02786
.0004233
1.6714
.3085
.0006510
Wed.
.9988
1.2812
11.058
.3770
32.470
1.0409
.5924
.5928
.5937
.5952
1.3516
1.3488
1.3437
1.3370
425.25
8.3272
1001.50
....
27.307
6.0118
....
3615.00
4.7150
5.3220
5.3126
5.2935
5.2617
1.5744
1.5714
1.5652
1.5552
246.98
7.7390
162.89
35.875
2362.15
.6001
3.2474
1542.50
Tues.
.9988
1.2655
10.988
.3770
32.205
1.0401
.5901
.5905
.5914
.5929
1.3568
1.3539
1.3489
1.3422
424.40
8.3276
1001.50
....
27.194
5.9633
....
3587.50
4.6841
5.2838
5.2741
5.2558
5.2243
1.5639
1.5607
1.5547
1.5450
245.80
7.7390
162.23
35.890
2362.63
.5983
3.2412
1536.00
Country
Japan (Yen)
30-Day Forward
90-Day Forward
180-Day Forward
Jordan (Dinar)
Kuwait (Dinar)
Lebanon (Pound)
Malaysia (Ringgit)
Malta (Lira)
Mexico (Peso)
Floating rate
Netherland (Guilder)
New Zealand (Dollar)
Norway (Krone)
Pakistan (Rupee)
Peru (new Sol)
Philippines (Peso)
Poland (Zloty)
Portugal (Escudo)
Russia (Ruble) (a)
Saudi Arabia (Riyal)
Singapore (Dollar)
Slovak Rep. (Koruna)
South Africa (Rand)
South Korea (Won)
Spain (Peseta)
Sweden (Krona)
Switzerland (Franc)
30-Day Forward
90-Day Forward
180-Day Forward
Taiwan (Dollar)
Thailand (Baht)
Turkey (Lira)
United Arab (Dirham)
Uruguay (New Peso)
Financial
Venezuela (Bolivar)
SDR
ECU
Wed.
.008639
.008676
.008750
.008865
1.4075
3.3367
.0006445
.4018
2.7624
....
.1278
.5655
.7072
.1540
.02529
.3814
.03800
.3460
.006307
.0001787
.2666
.7116
.03259
.2141
.001184
.007546
.1431
.7334
.7357
.7401
.7470
.03638
.03902
.00000911
.2723
....
.1145
.002098
- - -
1.4315
1.2308
Tues.
.008681
.008718
.008791
.008907
1.4075
3.3389
.0006445
.4002
2.7701
....
.1277
.5699
.7106
.1548
.02529
.3840
.03802
.3475
.006369
.0001788
.2667
.7124
.03259
.2142
.001184
.007603
.1435
.7387
.7411
.7454
.7523
.03637
.03906
.00000915
.2723
....
.1145
.002096
1.4326
1.2404
Wed.
115.75
115.26
114.28
112.80
.7105
.2997
1551.50
2.4885
.3620
....
7.8220
1.7685
1.4140
6.4926
39.540
2.6218
26.318
2.8900
158.55
5595.00
3.7503
1.4053
30.688
4.6705
844.75
132.52
6.9865
1.3635
1.3593
1.3511
1.3386
27.489
25.625
109755.00
3.6720
....
8.7300
476.70
.6986
..........
Tues.
115.20
114.71
113.76
112.28
.7105
.2995
1551.50
2.4990
.3610
....
7.8330
1.7547
1.4073
6.4599
39.540
2.6039
26.300
2.8780
157.02
5594.00
3.7502
1.4037
30.688
4.6690
844.65
131.53
6.9697
1.3537
1.3494
1.3416
1.3293
27.493
25.605
109235.00
3.6720
....
8.7300
477.12
.6980
...........
U.S. $ equiv.
Currency
Wednesday, January 8, 1997 per U.S. $
US dollar price:
S($/£)=1.6880
£1 costs
$1.6880
UK pound price:
S(£/$)=0.5924
$1 costs £0.5924
And note that
1
(£/$)
($ / £)
S
S
49. Spot market
• The current exchange, S($/€)=1.5000. In 1 month, it is
S(€/$)=0.6689
– Has the US dollar appreciated or depreciated?
– By what % has the exchange rate changed?
• Convert S(€/$)=0.6689 to:
1/S(€/$)=S($/€)=1.4950.
– Now we see that the exchange rate has decreased US dollar has
appreciated.
– The % change per month is: = 1.4950- 1.5000/1.50000 = -.33%
50. Cross rate
• The exchange rate between 2 currencies where neither
currency is the US dollar
• We know the dollar rates. What if we want to know other
rates, i.e. S(€/£) ?
– Calculate cross-rates from dollar rates
– S($/€)=1.5000 and S($/£)=2.0000. What is S(€/£), i.e. the € price
of
£?
• =
of £?
€ / ₤ = € / $ x $ / ₤ = 1/ 1.5000 x2.0000 =
€1.3333/1pound = s(€ / ₤ ) =1.3333
51. Cross exchange rate
• Cross-rates must be internally consistent;
otherwise arbitrage profit opportunities exist.
• Suppose that:
• € / ₤ = € / $ x $ / ₤
• A profit opportunity exists. Either S(€/£) is too
high or S(€/$) or S($/£) is too low.
• How does this work?
• Sell high and buy low.
52. Forward market
Forward market involves contracting today for the
future purchase or sale of foreign exchange
Forward prices are quoted the same way as spot
prices
Denote the forward price maturing in N days as
FN
i.e. F30($/£), F180($/€), F90(€/ ¥), etc
The forward dollar price of the euro can be:
Same as the spot price
Higher than the spot price (euro at a premium)
Lower than the spot price (euro at a discount)
53. Wrap -up
The foreign exchange market is by far the largest
financial market in the world.
Currency traders trade currencies for spot and
forward delivery.
Exchange rates are by convention quoted against
the U.S. dollar, but cross-rates can easily be
calculated from bilateral rates.
Triangular arbitrage forces the cross-rates to be
internally consistent.
The euro has enhanced trade within Europe, and
the currency has the potential of becoming a
major world currency.