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FOREX Trading basics

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Forex Investors get the opportunity to venture into the movement in the Forex exchange market. There is no specific time to trade, Individual can trade around the clocks. To understand the FOREX Trading basics we have to know a few reasons why people choose Forex. – PowerPoint PPT presentation

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Date added: 19 September 2019
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Title: FOREX Trading basics


1
FOREX Trading basics
2
Forex Investors get the opportunity to venture
into the movement in the Forex exchange market.
There is no specific time to trade, Individual
can trade around the clocks. To understand the
FOREX Trading basics we have to know a few
reasons why people choose Forex.   
How Liquid Forex Trading is?    Forex market is
five Trillian dollars a day. So there is a lot of
opportunities to trade in this forex market. You
can quickly get in and get out of the market.
How Diversified Forex Trading is?    First of
all, there are eight different currency pares,
you can trade in all these currencies, On the
other hand, there are much other regional
currency available out there, more options, more
opportunities to turn a profit.
3
How Accessible Forex Trading is?    The forex
market is easily accessible, it is 24/5 hours a
day. As a result, you can decide how to trade and
when to trade.   
How much Leverage Forex Market offers?   It can
be good for you or it can be bad for you because
you can amplify your gain or you can amplify your
losses. Leverage in forex is larger than stocks
so it has the potential to lose or gain a lot of
money. The way people understand leverage usually
tends to be as the thing that can make me a lot
of money very quickly but if I don't use it
wisely it can also lose my money.
Does Forex take Low commissions?   Forex takes
relatively low cost and sometimes it takes no
cost at all but in Stocks it takes spreads and
some tine it is very high. So trading in forex is
easier than stocks.
4
  • Major Pares
  •  
  • In the International business, there are many
    currencies to trade but there are eight
    currencies which can be taken as a major
    currency. The currencies are
  •  
  •  
  • EUR/USD (euro/dollar)
  • USD/JPY (dollar/Japanese yen)
  • GBP/USD (British pound/dollar)
  • USD/CHF (dollar/Swiss franc)
  • AUD/USD (Australian dollar/dollar)
  • USD/CAD (dollar/Canadian dollar)
  • NZD/USD (New Zealand dollar/dollar)

95 of Traders use the above currency
internationally. Among all these currencies, the
US dollar is the most relevant currency, most of
the time traders take it as a base currency.
5
  • Minor Pares
  •  
  • When in currency pare we do not use US Dollar
    then we consider it as a minor currency or it is
    called cross-currency. Some minor currencies are
    British pound, Euro, or Japanese yen, such as
  •  
  • EUR/GBP (euro/British pound)
  • GBP/JPY (British pound/Japanese yen)
  • CHF/JPY (Swiss franc/Japanese yen)
  •  
  • There are also some exotic currencies like Thai
    Baht and Norwegian or Swedish krone. However,
    these currencies have greater risk and volatility.

6
How can we find Best Forex Broker in Forex
Trading?   It is an individual's preference to
find a Forex Broker. It depends on      The
pairs you need to trade.      The platform you
want to use.   There are some factors based on
which we can make our Forex Trading decisions.
Lowest Trading Costs      Spreads      Commissio
n      Overnight fees   These things need to be
considered while choosing your Trading options.
The Commission fee is a major point in choosing a
broker.
7
Trading Platform A trading platform is needed to
be suitable for traders. You can choose a demo
account in trading so that you understand the
trading platform better. Once you find which is
best you can trade.   Mobile Trading For some
traders trading on mobile can be a good option.
Most of the companies provide their apps for iOS,
Android and Windows. So you have to check the
full version of the app so that you do not miss
any important features and Plugin. 
Customer Service      Language your preference.
     Live chat option.      Email and
     Telephone support.   You have to consider
all these things before you choose a
broker.   Asset List in Forex Trading
8
Asset List in Forex Trading   How many
currencies and how many packages does your broker
offers? If you want to trade in Thai Bahts or
Swedish Krone you have to check the offers
carefully.    Regulation of Forex Trading
       FCA,      SEC or      ASIC   These
are the regulatory body. Do you want a broker
regulated by a particular body then it might
affect your trading and leverage?  
9
Payment Methods in Forex trading   Deposit method
options are very important in the forex business.
You might use      Paypal      Skrill
     Neteller   These are options you have to
consider according to your availability and
expenses. In present time brokers now accept
deposits in Bitcoin or a range of other cryptos
too.
10
Security in Forex Trading   What is the security
that I am investing the money in a trustworthy
company? How would I know that the company is not
fake? These are the questions most of the time
investors think about. The Company shares its
information and investor password so that you can
be sure about it.   The Idea of Demo Accounts in
Forex Trading   A demo account is a good option.
Which means Try before you buy. Most brokers are
willing to let you see their platforms risk free
but if you practice on a demo account you can
learn organically.
Account Types      Cash      Margin      PAMM
accounts,      Bronze      Silver      Gold
     VIP levels 
11
All of these are different types of accounts. You
can understand the difference by        The
amount of cost      reduced spread
     access to Level II data      settlement
or different leverage etc.
Education   Without having proper knowledge in
Forex Trading it is gambling. You need to study
regularly for it. You can learn
through        E-books      Pdf
documents      Live webinars,      Expert
advisors      Courses or a full academy program
  Whatever the medium of source you have to
judge it before you start.
12
Which one I should choose? Meta Trader 4 or 5
  In both of these, the purpose is the same but
it differs according to the features. Meta Trade
5 is the advanced version of MT4 which offers
much more instruments to trade and allows
improved connectivity to the market. It has more
adaptability to the customers.      Execution
Speed   The Desktop platform is normally more
consistent in execution speed. Mobile options are
a little bit slower. Sometime miscommunication
might cost you. So it better to use the Desktop
version.
13
Different Forex Trading Systems   There are many
different Forex day trading systems
  Ø Scalping It means quick in and quick
out   Ø Fading This system involves the shorting
of stocks, an index or a currency pair,
immediately after upward moves.   Ø Daily Pivots
Profit is gained through the volatility of the
daily prices of assets.   Ø Momentum Trading is
usually performed on news releases, or by
locating the strong moves which are trending.
14
What you should do in Forex Trading
            First open a demo account using the
MT4 or MT5 trading platform.         Choose a
few strategies you are good at.         Use the
chosen system on a demo account and try to make a
profit.         Try to trade realistic in the
demo account.         The practice you develop
in the demo account should be used in real
trading.  
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