This document provides an introduction to forex trading. It explains that forex involves trading one currency for another on global markets. The forex market is the largest financial market in the world, with over $4 trillion traded daily. Individual investors can participate by opening positions using leverage, which allows trading much larger amounts than the initial investment. The document outlines the basics of how forex markets work, how to profit by buying low and selling high, and the advantages of forex such as its 24/7 availability and ability to leverage funds. Risks are addressed, noting that losses are limited to the initial investment if proper risk management is followed.

1. Prepared by:
Mohammad Sabri
&
Mariam Reyad
ITI (Intake 31) – SWE 2

2. •Do you want to
increase your
income!?
•Do you want to
have your own
business!?

3. Introduction: What is Forex?
Forex the market
Forex methodology
What is a Forex deal?
Forex market VS other markets
Conclusion: Why Forex?

4. What does the word FOREX mean?
•The word FOREX stands for:
FOREIGN EXCHANGE

5. Forex market description
• Markets are places where goods
are traded, and the same goes
with Forex.
• In Forex markets, the “goods”
are the currencies of various
countries (as well as gold and
silver).

6. Unlike stock market, no
physical purchase of the
currencies… just
contracts for amount
and exchange rate of
currency pairs.
Forex market description (cont.)

7. The Power of Forex
• Forex market is the
biggest & fastest growing
market on Earth.
• In September 2010,
Forex turnover hit $4
trillion!!!

8. Who can particiapte in Forex?
• The participants in this market are:
Central & commercial banks
Corporations
Institutional investors
Hedge funds (i.e., Forex companies)
Private individuals like YOU .

9. What happens in
the market?
• E.g., Buying euro with
USD, or selling Japanese
Yen for Canadian dollars.
• It’s as basic as trading
one currency for
another.

10. How does one
profit in Forex?
Buy low and sell high!
• The profit comes from
the daily changes in the
currency exchange rate.

11. “Leverage”: Exclusive by Forex!
Leverage: is the ratio of your investment to
actual value of any deal.
Using a $1,000 to buy a Forex contract with a
$100,000 value is called “leveraging” at a
1:100 ratio.
The $1,000 is all you invest and all you
risk, but the gains you can make may be many
times greater.

12. Investor 1
(USD/EUR)
Y
O
U
I have a
Forex deal
at 100,000
USD
I only have
1,000 USD

But with Forex,
I can do it 
To take the Euros deal, YOU will pay your $1,000
now & Forex will reserve the deal for you until YOU
pay the rest of the money before a certain due date.

13. Y
O
U
But wherefrom
shall I get the rest
of the money? 
You can sell the
reserved deal to
another investor at
a higher price 
Investor 1
(USD/EUR)
I have a
Forex deal
at 100,000
USD
You can
borrow it

Investor 2
(EUR/USD)

14. How do I start trading?
1.Register
2.Deposit your money
3.Start trading!

15. A Forex deal: is a
contract agreed upon
between the trader
and the market maker
via the Trading
Platform.
Components of a Forex deal

16. 1. The currency pairs (which currency to
buy; which currency to sell)
2. The principal amount (the amount of
currency involved in the deal)
3. The rate (the agreed exchange rate
between the two currencies)
Components of a Forex deal

17. How do I monitor my Forex trading?
Market
analysis &
prediction
Open deal

18. How do I monitor my Forex trading?
• Online, anywhere, anytime!
• You have full control to:
Monitor your trading status
Check scenarios
Change some terms in your Forex deals
Close deals & withdraw profits

19. Advantages of Forex market VS
other market
 Available 24/7
 Leverage (1:50, 1:100 & 1:200)
 Two trends of profit (Pair of currencies in
every deal to trade with)
 Anytime you can close your investments &
withdraw your money.
 You can determine the limit of the loss.

20. How risky is Forex trading?
 You cannot lose more than your initial
investment!
 Avoid blind decisions
 You are strongly advised to never risk more
than what you can afford to lose.
 Remember!! Do not put all your eggs into
one basket!

21. Why Forex?
 Flexibility.
 Availability.
 Easy to start.
 Easy learn & try.
 Easy to control.

22.  Forex website:
http://www.forex.com/uk/ar/index.html
 Latest about Forex:
http://www.commodityonline.com/news/
Global-forex-trade-volume-hits-$4-
trillion-31374-3-1.html
 Learn about Forex:
http://www.wepapers.com/Papers/72180
/What_is__Forex