Forex Trading, Currency Trading

1. Forex Trading

2. 0.5
0.8
1.1
1.5
1.4
1.9
3.2
3.98
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
1988 1992 1995 1998 2001 2004 2007 2010
TRILLION
US $
Global Forex Market Growth
Source: Triennial Survey, BIS

3. Forex Market - Introduction
 Over $4 trillion transactions daily
 Open 24 hours x 5 days
 Biggest Financial Market in the world
 Accessible to every individual via Internet
 Buying and Selling of Currencies

4. Forex Market Advantages versus The Stock Market
Advantages Forex Stocks
24-hour Trading YES NO
Commission Free Trading YES NO
Continuous Trading (No Halt Trading) YES NO
Short Selling Without Authorization YES NO
Leverage 400:1 5:1
Demo Practice Account YES NO

5. Making and Losing Money
Your Decision CAD USD
You buy 1,000 CAD at the CAD/USD
rate of 0.90 1000 -900
A week later, the CAD/USD rises to 1.00 and
you exchange your 1,000 CAD back into U.S.
dollars
-1000 1000
Profit 100

6. Most Traded Currency pairs
EUR/USD (euro/dollar) – "euro"
USD/JPY (U.S. dollar/Japanese yen) – "gopher"
GBP/USD (British pound/dollar) - "cable"
USD/CHF (U.S. dollar/Swiss franc) – "swissie"

7. Most Heavily Traded Currencies
Currency Market Share
USD 83.7%
EUR 60%
GBP 15.3%
JPY 13.4%
CHF 9.5%
SEK 2.2%
AUD 2.1%
CAD 1.6%

8. Currency Quote Overview
USD/CAD = 1.2000/05
Base Currency Currency to the left (USD)
Quote Currency Currency to the right (CAD)
Bid Price 1.2000
Price for which the market
maker will buy the base
currency. Bid is always
smaller than ask.
Ask Price 1.2005
Price for which the market
maker will sell the base
currency.
Pip
One point move, in USD/CAD
it is .0001 and 1 point change
would be from 1.2000 to 1.2001
The pip/point is the smallest
movement a price can make.
Spread
Spread in this case is 5
pips/points, or the difference
between bid and ask price
(1.2005-1.2000).

10. Forex Trading
Trading Order Types:
 Market Order: Instant Execution
 Entry Order: Execution takes place at Target Price
 Stop Order: Used to Limit Potential Losses
 Limit Order: Limits Max Price- Buy & Min Price - Sell

11. Forex Trading Contd..
Account Type
Opening
Amount
Lots Leverage
Risk-
Reward
Recommended
Standard Trading $2000-$10000 $100,000 100:1 High Experienced Traders
Mini Trading $250-$500 $10,000 400:1 Low Novice Traders
Managed Trading $2000 -$10000 $100,000 100:1 Low
Investors with lot of
Capital

12. Trading Rules
Logic Wins; Impulse Kills
Never Risk More Than 2% Per Trade
Trigger Fundamentally, Enter and Exit Technically
Always Pair Strong With Weak

13. Trading Rules Contd..
 Being Right but Being Early Simply Means That You
Are Wrong
 Know the Difference between Scaling In and Adding
to a Loser
 What Is Mathematically Optimal Is Psychologically
Impossible
 No Excuses, Ever

14. Live Trading……

15. LIVE TRADING
 Market Watch: Currency Values & Metals
 Charts of Currencies (OHLC)
 Periodicity
 Trade Entry: Lot Size; Stop Loss, Take Profit; Instant Execution
 Balance
 Equity
 Margin
 Indicators

17. BITCOIN
First decentralized electronic currency
Created by pseudonym Satoshi Nakamoto in 2008
Not controlled by a single organization or
government
Open source (C++) project, and it is used by more
than 100,000 people
Peer to Peer Transfer, anywhere in the world for less
than a cent per transaction

18.  Finite supply that is limited by design (21 Mil)
 Batches of bitcoins are awarded to bitcoin miners—
people who volunteer to install and run a bitcoin client
on their PCs and solve complex mathematical problems
 Changing Finance in the same way as Web changed
Publishing
 Convertible to Dollar, Euro, Yen and more
BITCOIN Contd...

19. THANK YOU