how forex market works?

8
What is a Forex Market? Forex Market is a place where traders buy and sell currencies. Currencies like : USD, EUR, CAD Almost 4 billion dollars of currency traded each day . 1

Upload: hamza-assaad

Post on 12-Apr-2017

431 views

Category:

Economy & Finance


2 download

TRANSCRIPT

Page 1: How Forex Market Works?

What is a Forex Market?● Forex Market is a place where traders buy and sell currencies.● Currencies like : USD, EUR, CAD ● Almost 4 billion dollars of currency traded each day .

1

Page 2: How Forex Market Works?

How to Start Trading Forex?

#Step 1The first step is to learn about Forex trading.Both technical and fundamental analysis are used by professional traders to trade Forex successfully.

#Step 2 The second thing is to practice your knowledge using a Forex demo account for at least six months.[Just google “ Forex Demo account” you will find multiple broker’s websites thatprovide it]

2

Page 3: How Forex Market Works?

How Traders Benefit From Forex?

Traders make money from Forex markets by buying or selling currency pairs.For example:If you expect that the price of a particular currency will rise:you will buy (long position) it and vice versa (Short position).

3

Page 4: How Forex Market Works?

Why Forex and Not Stock Market?

For Stocks:● you need a significant amount of money to invest ($100 000 at least).● you are obligated to buy shares to get dividends as a benefit or to speculate them.● Stock Market need Solid experience.● Weak liquidity and volatility.

For Forex:● You don’t need a significant amount of money to invest ($1000 is enough!).● 1 year of experience is enough.● Very liquid and volatile market.

4

Page 5: How Forex Market Works?

How Currencies Work?

● The price of a currency is defined according to the currency supply and demand.● Major pairs are: EUR/USD, GBP/USD, USD/JPY, and USD/CHF.● USD is the only currency pegged to gold.● The major worldwide currency and the most liquid currency is USD.

5

Page 6: How Forex Market Works?

The importance of Risk Management

● Successful Forex traders practice Risk management well.● Trading Forex without setting a Risk Management strategy is a waste of time and money.● If you apply the rules of risk management you can benefit from financial markets even if you

have a risk/reward ratio of 50%.

6

Page 7: How Forex Market Works?

Forex Market Hours

7

Forex Market Center

Time Zone OpensGMT

ClosesGMT

FrankfurtGermany

Europe/Berlin 06:00 AM17-August-2015

02:00 PM17-August-2015

LondonGreat Britain

Europe/London 07:00 AM17-August-201

03:00 PM17-August-2015

New YorkUnited States

America/New_York 12:00 PM17-August-2015

08:00 PM17-August-2015

SydneyAustrailia

Australia/Sydney 10:00 PM16-August-2015

06:00 AM17-August-2015

TokyoJapan

Asia/Tokyo 11:00 PM16-August-2015

07:00 AM17-August-2015

Page 8: How Forex Market Works?

To Discover More information about Forex Trading Visit My Blog at:

8

www.investoune.com