The document provides an introduction to foreign currency and commodity trading. It discusses what Forex trading is, the levels of traders from beginner to expert, and the 10 keys to successful trading including equity management, buy/sell signals, trends, and protective stop losses. It describes the Forex market as the largest financial market globally. The document outlines characteristics of the FX market, increasing market turnover, important currencies traded, types of market participants, and factors influencing currency prices such as fundamentals and technical analysis.

1. ACCESS TO GLOBAL
INVESTMENT OPPORTINITIES…
An introduction to Foreign Currency
and Commodity Trading
By
GREENVAULTFX

2. WHAT IS FOREX?
 FOREX = FOReign Exchange.
 You can trade 24 hours a day.
 The FOREX is larger than all other financial markets COMBINED.
 Forex or Foreign Exchange is the simultaneous buying of one currency and the
selling of another.
 The Foreign Exchange (FOREX) market is a cash (or “spot”) interbank market
established in 1971 when floating exchange rates began to materialize. This market
is the arena in which the currency of one country is exchanged for those of another
and where settlements for international business are made.
 The FOREX is a group of approximately 6500 currency trading institutions, including
international banks, government central banks and commercial companies.

3. LEVELS OF A TRADER
 LEVEL ONE: Beginner Trader - To study and paper trade for a minimum of one
month with imaginary money, gaining the experience required to establish a track
record of profitable performance.
 LEVEL TWO: Advanced Beginner - To trade one or two lots with real money,
working through emotions and establishing a track record of making money.
 LEVEL THREE: Competent Trader - To trade in control with equity management,
achieving a financial return.
 LEVEL FOUR: Proficient Trader - To trade based on my belief, education, and
experience and achieves a financial return.
 LEVEL FIVE: Expert Trader - To mechanically execute profitable trades with no
emotion.

4. THE 10 KEYS TO SUCCESSFUL TRADING
 Key 1: Equity Management
 Key 2: Buy and Sell Signals
 Key 3: Bulls vs. Bears – Introduction to Highs, Lows, Support and
Resistance
 Key 4: Price Swings
 Key 5: Fibonacci Ratios
 Key 6: Trends and Trend lines
 Key 7: Trading Trends with Fibonacci Ratios
 Key 8: Trading Trend Reversals or “The King’s Crown”
 Key 9: Trading Consolidation with Fundamental Announcements
 Key 10: Protective Stop Losses and Law in Trading

5. CHARACTERISTICS OF FX MARKET
 Largest of all financial markets with average daily turnover of over $2 trillion!
 66% of all foreign exchange transactions involve cross-border counterparties.
 Only 11% of daily spot transactions involve non-financial customers.
 London is the largest FX market.
 US dollar involved in 87% of all transactions.
The foreign exchange market is the mechanism by which participants:
 transfer purchasing power between countries;
 obtain or provide credit for international trade transactions, and
 minimize exposure to the risks of exchange rate changes.

6. INCREASING TURNOVER

7. HOW DOES IT WORK…
Individual trader connected to each other through a network of licensed broker & exchanges
Traders Traders
Broker Exchange Broker
Broker
Globally there are…
…100s of exchanges
…1,000s of brokers
…1,000,000s of traders Traders

8. WHO ARE THE VARIOUS STAKEHOLDERS…
Individual trader connected to each other through a network of licensed broker & exchanges
Government &
Quasi Government
Traders
Traders
Broker Exchange Broker
Pvt Large Brokers Broker
Traders can be
Traders be
individuals, banks,
institutional
investors,
governments, large
Traders corporations etc
corporations

9. MARKET PARTICIPANTS
 Banks and a few nonbank foreign exchange dealers operate in both the interbank and
client markets.
 They profit from buying foreign exchange at a “bid” price and reselling it at a slightly
higher “offer” or “ask” price.
 Dealers in the foreign exchange department of large international banks often function
as “market makers.”
 These dealers stand willing at all times to buy and sell those currencies in which they
specialize and thus maintain an “inventory” position in those currencies
 Central banks and treasuries use the market to acquire or spend their country’s foreign
exchange reserves as well as to influence the price at which their own currency is
traded.
 They may act to support the value of their own currency because of policies adopted at
the national level or because of commitments entered into through membership in
joint agreements such as the European Monetary System.
 The motive is not to earn a profit as such, but rather to influence the foreign exchange
value of their currency in a manner that will benefit the interests of their citizens.
 As willing loss takers, central banks and treasuries differ in motive from all other market
participants.

10. MARKET TIME

11. IMPORTANT CURRENCIES

12. TYPES OF ACTIVITIES
 Speculation
 An activity that leaves one open to exchange rate fluctuations where
one aims to make a profit.
 Hedging
 Allows the firm to transfer exchange rate risk inherent in foreign
currency transactions or positions.
 Arbitrage – take advantage of inconsistent prices to make risk-free profits.
These profits are unlikely to last long.

13. FACTORS INFLUENCING CURRENCY PRICES
Fundamental or Technical
The two basic approaches to analyzing the currency market are Fundamental Analysis and
Technical Analysis. The fundamental analyst concentrates on the underlying causes of
price movements, while the technical analyst studies the price movements themselves.
Fundamental Analysis
 Economic (GDP growth, Trade gap, unemployment, interest rates, inflation, etc)
 Social/Political (pending elections, change in governments, change in government
policies, wars, terrorist attacks etc)
 Geopolitical forces (earth quakes, tsunamis, floods, draught, failure of monsoons
etc)
These drive supply and demand.
Be aware when announcement are due. Sometimes the expert are wrong and get
caught by unpredictable actions.

14. TECHNICAL ANALYSIS
 Technical analysis focuses on the study of price movements. Historical currency
data is use to forecast the direction of future prices.
 The primary tools of the technical analyst are charts. Charts are used to identify
trends and patterns in order to find profit opportunities. Being able to identify
trends in their earliest stage of development is the key to technical analysis.

15. PRICE QUOTE
Foreign currency dealers provide two quotes:
Bid Price: Price at which the dealer is willing to buy foreign currency from
you.
Ask Price: Price at which the dealer is willing to sell foreign currency to you.
 It is always the case that the Ask Price > Bid Price. The difference is the Bid-
Ask spread.
 The less traded and more volatile a currency, the greater is the spread.

16. THE THREE ESSENTIAL PRINCIPLES
 Market action discounts everything
 The actual price is a reflection of everything that is known to the market that could
affect it, for example, supply and demand, political factors and market sentiment.
The pure technical analyst is only concerned with price movements, not with the
reasons for any changes.
 Prices move in trends
 Technical analysis identifies patterns of market behavior that have long been
recognized as significant. For many given patterns there is a high probability that
they will produce the expected results. There are recognized patterns that repeat
themselves on a consistent basis .
 History repeats itself
 Forex chart patterns have been recognized and categorized for years and the
manner in which many patterns are repeated leads to the conclusion that human
psychology changes little over time.

17. 2 SIMPLE STEPS TO START TRADING IN
FOREX
Sign agreement
with broker Exchange
1
Chicago Futures Exchange
Anywhere
India New Zealand
Segregated account with
From SB Account
Transfer Minimum 2 Greenvault FX Managed online
by the user directly through
US $ 5,000
username and password
Earnings can be repatriated
back to India or forwarded to
any of your accounts anywhere

18. REGULATIONS RELATED TO FOREX TRADING IN
INDIA
 Resident Indians can trade in currency through various Indian financial institutions
today
 However, currently the resident Indians cannot trade in currency pairs not involving
the Indian Rupee, (like the USD/GBP) with any scheduled bank or such other agency
falling under the regulatory purview of the Reserve Bank of India
 Therefore to trade in such currency pairs, one will have to transact Forex trades
outside India
 RBI, through the provisions in the Master Circular No.05 /2009-10 dated July 1, 2009
under Clause A-13 Liberalized Remittance Scheme of USD 200,000 for Resident
Individuals resident Indians can remit up to USD 200K per annum out of India without
RBI clearance
 RBI also confirms that resident individuals are free to acquire and hold immovable
property or shares (of listed companies or otherwise) or debt instruments or any other
asset outside India without prior approval of the Reserve Bank.
 Individuals can also open, maintain and hold foreign currency accounts with a bank
outside India for making remittances under the Scheme without prior approval of the
Reserve Bank.

19. Greenvault FX is headquartered in New Zealand and is authorized and regulated by
Financial Services Complaints Ltd (FSCL) of New Zealand. We are an international
brokerage house in the Forex Exchange trading providing top quality financial and
investment services all over the world.
Trading currencies, precious metals, energy and commodities; advanced technologies to
meet the individual needs of beginners or experts along with transparency and security
are the key services that Greenvault FX offers its Clients.
Our mission is to provide exemplified service, be it a retail or institutional client in the
online Forex trading. We aim at customer-focused policy to foster long term and
mutually rewarding relationship with our clients. We work on the entire element like
technology, education, support, information that would help our clients make better
informed trading decisions.

20. All u need is to be successful in Forex Market
THANK YOU