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MD

Mahdi Doe

Transcript

LEARN2EXPAND

FOREX TRADING

FOR

EX

FOREIGN EXCHANGE

Intro

Foreign exchange is the art and science of international monetary exchange

Hartley Whiters

Structure

FOREX

a) Foreign Currency b) Exchange Rate

What is

  • global market
  • sell or buy
  • educated trader

Forex Environment

Why trade forex?

Advantages

OPEN 24 / 51/2

24 hour Market

  • pretty continuous.

  • 24 hours a day, 5 days and a half a week.

  • at odd times of the day

High liquidity

extremely liquid

Liquid market

  • enormous market

  • instantaneously buy and sell

  • Take profit & stop loss

Low barriers to entry

Low barriers to entry

  • Don´t have to spend much

  • Tons of tools, Loads of data

  • The most accessible financial market

High ACCESSIBILITY

accessibility

  • Internet Connection & Smart Device

  • OTC (Over The Counter) Market

  • Sign up for free and fast

  • Forex broker

NO COMMISSIONS

Commissions

  • No exchange fees, No government fees

  • How do they make their money?

  • Bid Price & Ask Price

  • The spread

Different kinds of currency pairs

Currency

Example: USD/EUR

4

major currency pairs

5

Major

6

  • Most traded currencies

  • Massive liquidity

  • USD on one side

  • Lowest spreads

7

AUD/USD

AUD/USD

  • The Australlian Dollar vs. The US Dollar

  • Differential Interest rate

  • Has waned in recent years

USD/CHF

USD/CHF

  • The US Dollar vs. The Swiss Frank

  • "Swissie"

  • 5th most traded currency

  • Safe haven pair

  • Reserve currency

NZD/USD

NZD/USD

  • The New Zealand Dollar vs. The US Dollar

  • "The Kiwi"

  • 10th most traded currency

USD/CAD

USD/CAD

  • The US Dollar vs. The Canadian Dollar.

  • CAD is a commodity currency (natural resources).

  • One of the most traded currency pair in the world

minor currency pairs

Minor

  • Including two major currencies apart from USD

  • Cross-currency

  • GBP/EUR & AUD/JPY

  • CHF/JPY & EUR/JPY

EUR/GBP

EUR/GBP

  • The Euro vs. The British Pound

  • The two largest economies in Europe

  • Economic closeness

  • The Bank Of England & The European Central Bank

EUR/AUD

EUR/AUD

  • The Euro vs. Australian Dollar

  • Great barometer for global risk

  • In 2012 reached its low

  • European Central bank

GBP/JPY

GBP/JPY

  • The British Pound vs. The Japanese Yen

  • Highly volatile pair

  • Proxy for the worldwide economic health

  • Might develop strong trends

CHF/JPY

CHF/JPY

  • The Swiss Frank vs. The Japanese Yen

  • In 2008 reached its low

  • safe haven & funding currencies

GBP/CAD

GBPCAD

  • The British Pound vs. The Canadian Dollar

  • "Leonie"

  • One of the most traded pairs

  • Heavy energy exports

exotic currency pairs

Exotic

  • Major currency & emerging currency

  • Not traded frequently

  • Higher spread