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What is Forex Trading .pdf


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Table of Index

Topics

What is Forex Trading? ………………………………………………………………………..

Special Benefits of Forex Market …………………………………………………………
Some Common Currencies …………………………………………………………………..
Before Starting Forex Trading ………………………………………………………………

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Avoid Get Rich Quickly Services in Forex Trading ………………………………..

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Some Operation YOU must know in Forex Trading Platform ………………

5

Standard Risk – Reward Ratio ……………………………………….……………………
Proper Stop Loss Setting is Necessary to Save from False Trigger ……….
Download Forex trading Guide …………………………………………………………..

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1

U.S. Government Required Disclaimer – Trading foreign exchange on margin carries a high level of risk
and may not be suitable for all investors. The high degree of leverage can work against you as well as for
you. Before deciding to invest in foreign exchange, you should carefully consider your investment
objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of
some or all of your initial investment and therefore you should not invest money that you cannot afford
to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice
from an independent financial advisor if you have any doubts. The purchase, sale or advice regarding a
currency can only be performed by a licensed Broker/Dealer; Neither us, nor our affiliates or associates
involved in the production and maintenance of this service or this site, is a registered Broker/Dealer or
Investment Advisor in any State or Federally-sanctioned jurisdiction. All purchasers of services or
products referenced at this site are encouraged to consult with a licensed representative of their choice
regarding any particular trade or trading strategy. No representation is being made that any account will
or is likely to achieve profits or losses similar to those discussed on this website. The past performance
of any trading system or methodology is not necessarily indicative of future results. You must clearly
understand this: Information contained here and in the signal service is not an invitation to trade any
specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do
not risk any money you cannot afford to lose. This document does not take into account your own
individual financial and personal circumstances. It is intended for educational purposes only and NOT as
individual investment advice. Do not act on this without advice from your investment professional who
will verify what is suitable for your particular needs and circumstances. Failure to seek detailed
professional, personally tailored advice prior to acting could lead you to acting contrary to your own
best interests and could lead to losses of capital.

*CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN
LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT
ACTUAL TRADING. IN ADDITION, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY
HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT OF ANY OF THE CERTAIN MARKET FACTORS,
SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE
FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING
MADE THAT RISK WARNING: Risks of currency trading Margined currency trading is an extremely risky
form of investment and is only suitable for individuals and institutions capable of handling the potential
losses it entails. An account with a broker allows you to trade foreign currencies on a highly leveraged
basis (up to about 400 times your account equity).The funds in an account that is trading at maximum
leverage may be completely lost if the position(s) held in the account experiences even a one percent
swing in value. Given the possibility of losing one's entire investment, speculation in the foreign
exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect
the investors’ financial well-being.

* This content is for educational purpose only not as a trading or investing advice.
2

What is Forex Trading?
Forex is a term that traders and professionals often use to refer to the currency
exchanging market. The primary function that this market serves is facilitating the
exchanging of currencies between institutions, corporations, and individuals. It’s by far,
the biggest market in the world with the daily volume as of 2013 reaching over 5 trillion
US Dollars. Most of it, about 80% occurs between large financial institutions and banks.
The main trading centers are London, New York, Tokyo, Frankfurt, and Singapore. The
largest traded volume occurs in the city of London; hence, it is considered the capital of
the Forex market.
The Forex market is an integral part of our lives. Whenever you need to travel to
another country or buy something from abroad you will need foreign currency.
Everyone is in some way part of this huge foreign exchange market.
The currency market is a unique financial market because it is open and trading all
around the clock during working days of the week. It’s not centralized in one place like
other financial markets are, but instead, banks and financial institutions trade directly
between each other through large financial networks.

3

Special Benefits of Forex Market
Because of these reasons, the Forex market has special characteristics that offer traders
attractive opportunities for profit, such as:
 Selling is just as easy as buying – Unlike in the stock market, shorting a currency
pair is a common practice. In fact, it’s no different than buying a pair because of
the way the Forex market works. When you go long on a pair, say EURUSD, you
are simultaneously buying the first currency (Euro) and selling the second one
(USD). When you go short, you are selling the first currency (Eur) and buying the
second (USD)
 Very high leverage available, even up to 1000:1

 Clear and reliable chart patterns – Because of the high liquidity in the market,
technical analysis tends to work better in the Forex market

 Compared to other financial markets smaller capital is required to start trading
Some Common Currencies
The most liquidate currencies those are also most traded, are the U.S. dollar, EUR,
Japanese yen, British pound, Swiss Franc, CAD the Canadian dollar, Australian dollar.
Unlike the stock market, Forex trading market has no central exchange. With trading
forex, you can make a profit (loss also?) whether the market is up or down. Contrasting,
only making money when the stock market goes up.

4

Before Starting Forex Trading
Forex online brokers provide a practice account you can see every broker has
opportunity to open demo account there are lots guidance, and market forecast for the
beginning investor. Beginner traders can practice their skills in forex trading before
actually investing in live forex account with real capital.
Once you have gathered some basic skill, a lowest amount investment can be made
some broker support as low as $100.00. This ‘mini-trading’ account is a nice way to start
forex trading. But keep in mind for wrong money management such small amount can
be blow up you trading account in a day. So you need to learn something about money
management. In spite of good trading system without correct money management
success goes far. For this reason we provide a money management guide to our entire
forex trading signals subscriber for free that help a trader a lot.

Avoid Get Rich Quickly Services in Forex Trading

Be very careful of companies that offer lucrative return, monthly gain thousands of PIPs.
Before fall into such trap please contact with them justify yourself is the profit is
realistic? Be careful as well extremely profitable statement without clear trading result
that most of time misleading.

Some Operation YOU must know in Forex Trading Platform

For money management need to learn proper stop-loss take profit and trailing stop
using. First I am telling here about Stop loss and take profit in regards of execution
trading. Stop-loss allows you how much risk you want take for the trade and take profit
allow you to enter the expected price level. But those not a guessing job that almost all
new trader do. Here need some calculation where market can react. Earlier we have
discussed elaborately in this article Forex Stop Loss Take Profit & Trailing Stop. Practice
this in your demo account then became pro.
5

Below a trade example with correct risk reward ratio –

Standard Risk – Reward Ratio

Your take profit must be smaller than profit target. But that should be ensure by correct
analysis if the analysis not support correct reward for your risk then avoid trade. Per
trade capital risk should not be exceeded 2%. That is also recommended by all of forex
experts. Low risk and high rewarded forex signals is one of prime features of a best forex
signal provider

Proper Stop Loss Setting is Necessary to Save From False Trigger

Some time false trigger can be very annoying for a trader often some trader blame only
broker but here need good calculation for large spread brokers. To calculate Stop Loss
(SL) a trader should take the bid price. More about Proper Stop Loss Settings

6

Do YOU want to learn more about Forex Trading?
This guide & FREE trading forecasts can help you download this for free
by clicking the link www.preferforex.com/free-trading-forecast

YOUR Download Link www.preferforex.com/free-trading-forecast

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