Basics of Forex Currency Trading Beginner - PowerPoint PPT Presentation

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Basics of Forex Currency Trading Beginner


Forex is short for foreign exchange, but the actual asset class we are referring to is currencies. This PPT shows some basics of forex currency trading beginner. – PowerPoint PPT presentation

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Title: Basics of Forex Currency Trading Beginner

Basics of Forex Currency Trading for Beginners
  1. Basics Of Currency Trading
  2. How Forex Works
  3. Why Trade Currencies
  4. Why Currency Trading Is Not For Everyone

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Basics of Currency Trading
  • The term currency trading can mean different
  • We discuss currency trading as buying and selling
    currency on the foreign exchange market with the
    intent to make money, often called "speculative
    forex trading".

How Forex Works
  • The currency exchange rate is the rate at which
    one currency can be exchanged for the another.
  • It is always quoted in pairs like the EUR/USD
    (the Euro and the US Dollar).

  • Exchange rates fluctuate based on the economic
    factors like industrial production, inflation and
    geopolitical events.
  • These factors will influence whether you buy or
    sell a currency pair.

For Example
  • The EUR/USD rate denotes the number of US Dollars
    one Euro can purchase.
  • If you believe that the Euro will increase in the
    value against the US Dollar, you will buy Euros
    with the US Dollars.

  • If the exchange rate rises, you will sell the
    Euros back, earning a profit.
  • Always keep in mind that the forex trading
    involves a high risk of loss.

Why Trade Currencies?
  • Forex is the world's largest market, with about
    the 3.2 trillion US dollars in daily volume and
    24-hour market action.
  • Some key differences between the Forex and
    Equities markets are
  • 1. Many firms don't charge commissions you pay
    only the bid/ask spreads.

  • 2. There's 24-hour trading you direct when to
    trade and how to trade.
  • 3. You can trade on leverage, but this can
    magnify potential gains and losses.
  • 4. You can focus on picking from the few
    currencies rather than from 5000 stocks.
  • 5. Forex is accessible you dont need a lot of
    money to get started.

Why Currency Trading Is Not For Everyone
  • Trading foreign exchange on margin carries the
    high level of risk, and may not be suitable for
  • Before deciding to trade foreign exchange, you
    should carefully consider your investment
    objectives, level of experience, and risk

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  • Remember, you could sustain a loss of some or all
    of your initial investment, which means that you
    should not invest the money that you cannot
    afford to lose.
  • If you have any doubts, it is advisable to seek
    advice from an independent financial advisor.

Thank You
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