forex at your fingertips
Post on 14-Apr-2016
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2CONTENTS ORDER TYPES
Instant ExecutionPending OrderBuy LimitSell LimitBuy StopSell Stop
FUNDAMENTAL ANALYSISEconomic IndicatorsGross Domestic ProductUnemploymentInterest RatePolitical & Policy Statements not to mention actionsIn Short the Economic Calendar
TECHNICAL ANALYSISChartsTrendsChartingChannelsSupport and ResistanceSupport Becoming ResistanceTechnical IndicatorsRelative Strength IndicatorMoving AveragesFibonacci Retracements
AN INTRODUCTION TO FOREX
WHY FOREX?The ScaleTiming & LocationLiquidity & StabilityTransparencyThe OfferingBroker Benefits
ESSENTIAL FOREX TERMINOLOGYBalance & EquityLotsPips & CurrenciesHow to Profit in Forex TradingComputing the Pip Value to Evaluate Profit/LossSpreadsLeverageMargin
4Nowadays, individuals and entities active in the various financial markets can profit each time such an exchange takes place without being directly involved in the transaction itself. They can either be invested in a commercial entity through shares or stocks; they can invest in indices that track the value of assets or asset groups; they can buy futures to trade on assets without actually buying or selling the asset, but merely being contracted to do so; and so forth. In fact, hardly a year goes by without some new form of financial instrument being created to enable more people to be involved in more ways in the worlds financial trade. And in Forex (FOReign currency EXchange) they invest in the relative values of national currencies.
Compared to other trading markets, Forex exhibits the largest daily turnover; and since there is no central clearinghouse for all those Forex deals (such as the New York Stock Exchange for shares), you can trade around the clock whenever a market is open in any financial capital in the world. You need no more than a PC or mobile with a connection to the internet.
When opening an account, ensure charges are low and that youre getting the leverage required, so that your profits will be amplified to a considerable return; because fluctuations in the Forex market are relatively small. Your broker will provide access to free software, there should be no commissions, and what you earn is yours.
FOREXAN INTRODUCTION TO
EVER SINCE THE DAWN OF CIVILIZATION, HUMANS HAVE BEEN BUSY EXCHANGING THINGS PROPERTY, FOOD, MONEY AND EVEN IDEAS.
5Foreign exchange trading is attractive because it involves one of the most exciting global financial markets, providing optimal trading opportunities around the clock. Aside from returns and improved pricing that is among the lowest in the industry, easy access to information and analysis ensure you have a higher degree of success versus any other trading venue. A 24-hour market that operates five days a week provides maximum flexibility; and the variety of assets includes, not only currencies, but also commodities, indices and even shares.
THE SCALE As mentioned, the most pertinent characteristic of the Forex market is its size the entire bulk of the worlds money is the basic asset, subdivided into its respective currencies.
The amount of physical money in the world is estimated to number approximately $5 trillion; but if you add to that physical money, money accessible in checking accounts, savings accounts, institutional money, market funds, and deposits, the number is at least 15 times that. Of those funds, anywhere between the equivalent of $3-5 trillion exchanges hands on a daily basis. That is more than 20 times the amount of daily trading volume of the worlds largest stock market.
6TIMING & LOCATION Every country has its currency to pay for commodities and services while implementing its own fiscal policy. As such, the actual Forex market does not really exist as a centralized entity, but rather as a global marketplace that can be accessed whenever markets are open anywhere around the world. In simpler terms, that means you can trade Forex nearly 24-hours a day, 5-days a week. There is no central clearinghouse to limit or hinder your trading activities, and liquidity is readily accessed.
LIQUIDITY & STABILITY Unless the basis of the entire global monetary system breaks down completely, the forex markets size, turnover, and ample levels of participation comprise the foundation of a very established market. Thanks to its size, no single force can influence it disproportionately , and prices are a totally transparent reflection of supply and demand, as determined by market forces.
TRANSPARENCY Forex trading in its current form is a culmination of modern technology and the instant, unmediated access that every trader has to the market and the information that motivates it. Investors through their brokers get access to the software that enables them to open, alter and close positions independently. There are no intermediaries to delay or alter their requests orders are simply placed instantly and reliably by the traders themselves.
Beyond that, the internet has become a great equalizer regarding access to the information that moves the markets. In Forex, we are dealing primarily in national currencies, and these are determined by central banks. The policies, current affairs and announcements that guide them are readily available to anyone with an internet connection to major news sources; and there are very few dealings behind closed doors that do not become instantly accessible to even the smallest retail trader. In addition, educational material on how to read the information and process it is also readily available as basic as this eBook, and as advanced as scholarly articles on how to program trading robots in advanced (and free) trading platforms.
Thus, the worlds of fundamental analysis (based on real-world events) and technical analysis (based on investor sentiments and actual market dynamics) are opened to the wider public, rather than to those in the know or others with advanced economic degrees.
7THE OFFERINGForex traders invest in the relative values of national currencies by trading on currency pairs. Each pair is valued according to the momentary exchange rate between those two currencies. Some commodity pairs are valued against the dollar (such as gold and silver) in the form of a CFD (Contract For Difference), in which a contract is made between two parties for remuneration based on value variance between the start and end dates of the contract. CFDs enable traders to invest on the values of shares, indices and again commodities, such as crude oil, copper, corn, coffee, etc.
BROKER BENEFITS Besides free access to trading platforms and educational materials, Alvexo provides a plethora of daily news, signals, market reviews and expert analysis. All these are aimed at maximizing client returns.
The most salient aspect of trading Forex through a regulated Forex broker is leverage an investment that the broker makes alongside you to increase
your profits. Since fluctuations in Forex can be very small (several hundredths of a cent at a time), one would need to invest huge amounts in each transaction to see a recognizable gain. Forex leverage is usually measured in denominations of 100 100:1, 200:1, 400:1, and possibly higher. What this means is that for every dollar the client invests, the broker magnifies the amount invested by the leverage multiple. This in turn multiplies the profit by the same leverage factor, making it easier to make money but also to lose it.
BOOKS ARE RARELY ENOUGH. OPEN A FREE $50,000DEMO ACCOUNT AND PRACTICE AS YOU READ.
PRACTICALLY FOREXREAL-TIME MARKET DATAACCESS ALL TOOLS AND ASSETSFREE ACCESS TO TRADING ACADEMY
OPEN FREE DEMO
8 BALANCE & EQUITYIn Forex, the amount of money one has at all times keeps changing due to the momentary fluctuations of ones open positions (trades). We therefore differentiate between ones balance and ones equity. Balance is the amount of funds first deposited into an investing account net of the profits and losses of all closed positions. Equity takes this measure one step further, giving a real-time account of the funds available in the account, including the profits and losses of existing open positions. In simpler terms, this is the account balance plus open profits and minus losses of open positions that have not yet been closed.
LOTSThe size of each position a trader opens (the value of the transaction) is measured in lots the basic measuring unit of volume that traders deal in. Whether one is buying or selling, one standard lot is always equal to 100,000 units of the base currency in a pair. In the EUR/USD (euro versus the US dollar) pair, that would be 100,000 euros. The actual value of that lot then changes in line with the price fluctuations of the pair.
Besides the standard lot, one may also trade in, mini-lots, which are equal to 10,000 units, or micro-lots, which are equal to 1,000 units.
ALVEXOS TRADING CALCULATORS PROVIDE SWIFT RESULTS, DRAWING REAL-TIME DATA FROM FINANCIAL MARKETS. JOIN ALVEXO AND ACCESS OUR WIDE RANGE OF TOOLS & ANALYSIS TO SUPERCHARGE YOUR INVESTMENTS.
NUMBERS MADE EASY
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ACCOUNTING PIPS & CURRENCIESAt present, there are over 180 national currencies in circulation, not all of