Basic information about currency trading for beginners.

1. FOREX
€, $, £, ¥
Yiğit ŞAHİN
İstanbul, 25/03/2007

2. AGENDA
 What’s Forex ?
 Basics of Forex
 Advantages of Forex
 Disadvantages of Forex
 Money Management
 Customer Profile
 About Strategy

3. WHAT’S FOREX ?
 Currency arbitrage
 Transfer of wealth from one type of
currency to another
 Daily volume is around 2 trillion $
 Banks, coorporate and individual
investors

4. Basics
 pip = 0.0001 unit
 eur/usd 1 pip = 0.0001 $
 usd/jpy 1 pip = 0.0001 ¥
 eur/gbp 1 pip = 0.0001 £
 Pair
Defines the type of currency is sold
against the other, e.g. eur/usd, gbp/usd

5. Basics
 Spread
Difference between the buy and sell prices.
Each broker may have different spreads.

6. Basics
 Leverage
It’s the factor of your deposit that you are
able to enter orders.
e.g. 100:1 leverage means, with 1,000 $
deposit you can enter an order of 100,000 $

7. Advantages of FOREX
 24 hrs, 5 days active market
 High potential of income with high
leverage
 Diffucult to manipulate the market
because of its size.
 Very liquid

8. Disadvantages of FOREX
 High risk
 Needs follow up 24 hrs
 You must be sure that you are
investing an amount that you can
afford to loose totally.

9. Money Management
 Weekly reporting
 Currently 4(+1) programs available.
Find updated details at slideshow
MMP.
 Management fee depends on the risk
category of the program. For further
information please send an e-mail to
ysceresfx@superonline.com

10. Customer Profile
 You must have enough resources that
you can invest at high a risk market.
 Be aware your investment can be
totally lost.
 Choose your program according to
your risk profile depending on your
financial portfolio.

11. About Strategy
 There exists not one system
consistently winning
 Some of the orders will end with
losses
 Even some weeks or months might
close with losses
 Systematic approach is the only way
to earn at the mid and long term