ForexSecret123 (18) - PowerPoint PPT Presentation

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ForexSecret123 (18)


Forex The best trading market – PowerPoint PPT presentation

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Title: ForexSecret123 (18)

Forex-The Best Trading Market
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Content At A Glance
  • What is Forex Trading?
  • Reasons Behind The Forex Popularity

What is Forex Trading?
  • Forex, also known as foreign exchange or
    FX trading, is the conversion of
    one currency into another. It is one of the most
    actively traded markets in the world, with an
    average daily trading volume of 3 trillion.

Reasons Behind The Forex Popularity
  • Forex is the largest financial market in the
  • Daily volume of over 3 trillion per day
  • Excellent price stability
  • Never have to worry about slippage
  • The price you see quoted on your
  • trading screen is the price you get

  • 24 hours a day 6 days a week
  • Sunday 5pm EST to Friday 4pm EST.
  • You can enter or exit a trade whenever
  • you want within this time
  • 3 distinct trading sessions totake
  • advantage of in the U.S., Europe, and Asia
  • Allows you to trade on your own
  • schedule and respond to world-wide breaking news.

  • Commission free trading
  • Futures brokers charge between 10 and 30
  • This means you pay between 10
  • and 30 to enter and exit every trade
  • Most forex brokers offer little or no
  • transaction fees
  • They are compensated through the
  • bid/ask spread of each currency pair
  • Typically these spreads are as little as 1.5 to 5

  • Market transparency and Instant execution
  • Market transparency is much greater in forex than
    in stocks
  • It is easier to analyze the inner workings of the
    market and figure out what is driving it.

For example, economic reports and news
announcements that drive a countrys economic
policy are widely available and accessible for
anyone interested. Whereas an individual
companys accounting statements are much harder
if not impossible to obtain. Instantaneous order
execution is another great advantage forex has
over other markets.
  • Retail forex trading is generally done over
  • the internet on all electronic platforms.
  • The forex market has no central exchange,
  • no open-out cry pits, no floor brokers
  • Designed to facilitate large banks and
  • allow for instant execution of transactions

  • Low margin requirements
  • This means you can control 100,000 worth of
    currency for only 1,000, or 1.

Forex margin requirements were recently raised
in the U.S. but at a maximum of 1100 this is
still much higher leverage than you will get in
the futures or equity markets.
The futures markets traders must post margin
equal to between 5-8 of the contract value
while stock traders typically must post at least
50 margin.
  • Highly predictable price movement
  • Due to its highly speculative nature forex 
  • price movements tend to over shoot  
  • A number of repetitive patterns
  • that are easily recognizable to the trader 
  •  Forex currancy pairs generally spend
  • more time in very strong up or down trends than
    other markets

  • Equal opportunity to profit in rising or falling
  • The forex market has no structural bias as
  • do most stock markets.

For example, most stock markets have a bullish
bias, this means traders tend to like the long
side or upside of the market more and as a result
of this it is actually more difficult and
generally requires more margin to sell short in a
stock market. This is not the case in
the forex market.
  • As an inherent feature of the structure
  • of the forex market
  • It is equally easy to buy or sell at anytime
  • There is never any increased fee for
  • selling short.
  • Each time you buy a currency you are
  • simultaneously selling another and
  • vice versa

  • Mini and micro accounts make it easy to get
  • Many forex brokers are easily accessible on the
  • Most of the bigger forex brokers all offer tight
    spreads Also offer demo accounts that let you
    test out your trading ideas before risking real
  • You can get started with as little as 250.
  • Micro accounts allow you to trade position sizes
    as small as 1 cent per 1 pip movement.
  • you can effectively control your risk

  • Wonderful movement to price action setups

Due to the speculative and contrarian nature of
the Forex market prices tend to continue in one
direction for a decent move and then revert back
to the mean or value-area. More often than not
these big moves are tipped off with a price
action signal. If you are trained by a
professional trader in the art of price action
analysis you can design an entire trading plan
around a few simple yet effective price action
  • For any inquiry contact us
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