FOREX

Август 28, 2022

Содержание

2. Necessary For a Forex Trader The Four M Man (You) Material (Money for Capital) Machine (PC,
3. WHAT IS FOREX? The Foreign Exchange market (also referred to as the Forex or FX market)
4. WHAT IS FOREX? Unlike other financial markets that operate at a centralized location (i.e., the stock
5. FOREX Trading Advantage A 24-hour market High Liquidity Low Transaction Cost Uncorrelated to the Stock Market
6. Major Dealer Centers The major dealer centers and time zones are that of Sydney, Tokyo, London,
7. Business Hours of Financial Centers:
8. Forex, unlike other financial markets, is not tied to an actual stock exchange. Forex is an
9. Background Traditionally, Forex has been dominated by inter-world investment and commercial banks, money portfolio managers, money
10. HOW THE CURRENCY VALUE IS DETERMINED? The exchange rate is determined through the interaction of market
11. Factors Affecting Supply and Demand Two primary factors that affect supply and demand are interest rates
12. Operation The 8 Major Currencies: 1. U.S. Dollar ($), 2. European Currency Unit (€), 3. Japanese
13. Example of Listed Currency Pairs The FOUR majors EUR/USD USD/JPY USD/CHF GBP/USD Other majors AUD/USD USD/CAD
14. How a Currency Trade Works? Reading a currency quote : GBP/USD ; USD/CHF ; EUR/USD -
15. FOREX Market Participants Central Banks They play an important role by keeping inflation low and steady
16. FOREX Market Participants Banks Interbank market provides commercial turnover and huge amounts of speculative trading on
17. FOREX Market Participants Interbank Brokers - Before large FOREX broker facilitate interbank trading and matching for
18. FOREX Market Participants Investors and Speculators It’s estimated that the largest portion of the FOREX daily
19. FOREX Market Participants Hedge Funds Managers This is a manage Investment where the fund manager is
20. THE TRADE Buy Sell Traders generate profits, or losses, by speculating whether a currency will rise
21. TWO (2) ASPECTS OF TRADING Fundamental analysis Focuses on what ought to happen in a market
22. Fundamental Analysis Thorough analysis of economic and political data with the goal of determining future movements
23. The Importance of Fundamental Analysis A nation's political condition, along with its inflation and interest rates,
24. Technical Analysis Traders use these technical factors to identify buying and selling opportunities. Over long historical
25. How Trading Works So how does the actual trading work? A complete transaction is the buying
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Слайд 2

Necessary For a Forex Trader
The Four M
Man (You)
Material (Money for Capital)
Machine

(PC, Laptop, Internet Connection)
Method (Trading System, Platform)

Слайд 3

WHAT IS FOREX?
The Foreign Exchange market (also referred to as the

Forex or FX market) is the largest financial market in the world, with the equivalent of over $3.2 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined.

Слайд 4

WHAT IS FOREX?
Unlike other financial markets that operate at a centralized

location (i.e., the stock exchange), the worldwide Forex market does not have a central location. It is a global electronic network of banks, financial institutions and individual Forex traders, all involved in the buying and selling of national currencies.

Слайд 5

FOREX Trading Advantage
A 24-hour market
High Liquidity
Low Transaction Cost
Uncorrelated to the

Stock Market
Inter-bank Market
No one can corner the Market

Слайд 6

Major Dealer Centers
The major dealer centers and time zones are that

of Sydney, Tokyo, London, and New York. Therefore, traders must consider which players are in the market, since in the modern interconnected financial world, events that occur at any hour, in any part of the globe, can affect some or all parts of the investment community.

Слайд 7

Business Hours of Financial Centers:

Слайд 8

Forex, unlike other financial markets, is not tied to an actual

stock exchange. Forex is an over-the-counter (OTC) or off-exchange market.

Слайд 9

Background
Traditionally, Forex has been dominated by inter-world investment and commercial

banks, money portfolio managers, money brokers, large corporations, and very few private traders.

Слайд 10

HOW THE CURRENCY VALUE IS DETERMINED?
The exchange rate is determined through

the interaction of market forces dealing with supply and demand.
The value of a currency, in the simplest explanation, is a reflection of the condition of that country's economy with respect to other major economies.

Слайд 11

Factors Affecting Supply and Demand
Two primary factors that affect supply and

demand are interest rates and the strength of the originating country’s economy as a whole. Fundamental indicators, such as foreign investment, PPI, CPI, GDP, and the trade balance, echo the overall health of the economy, and alter the supply and demand for that currency.

Слайд 12

Operation
The 8 Major Currencies:
1. U.S. Dollar ($),
2. European

Currency Unit (€),
3. Japanese Yen (¥),
4. British Pound Sterling (£),
5. Swiss Franc (Sf),
6. Canadian Dollar (Can$),
7. Australian
8. New Zealand Dollars.

Слайд 13

Example of Listed Currency Pairs
The FOUR majors
EUR/USD
USD/JPY
USD/CHF
GBP/USD
Other majors
AUD/USD
USD/CAD
Currency Crosses
EUR/CHF
EUR/JPY
GBP/JPY
EUR/GBP

Слайд 14

How a Currency Trade Works?
Reading a currency quote :
GBP/USD ; USD/CHF ; EUR/USD
-

first listed currency is the ‘ BASE’ currency – basis for buy or sell transaction.
- second listed currency is called the ‘Counter’ or ‘Quote’ currency.
E.g. A trader places a buy GBP/USD order. The action that takes place is the trader sell the USD and buy GBP.

Слайд 15

FOREX Market Participants
Central Banks
They play an important role by keeping

inflation low and steady by controlling money supply.
Restore the order in the market in the event of excessive currency rate volatility.
.

Слайд 16

FOREX Market Participants
Banks
Interbank market provides commercial turnover and huge amounts

of speculative trading on a daily basis.
Bank trading are:
1. On behalf of the bank customers.
2. Proprietary trading where bank dealers trade bank capital to make a profit.

Слайд 17

FOREX Market Participants
Interbank Brokers
- Before large FOREX broker facilitate interbank

trading and matching for a fee. The internet revolution has forced this business to move to electronic system.
Customer Brokers
- These are brokers that handle retail trades.
- They are the main driver for the increasing use of internet.
- The business is growing fast and very competitive, they provide
dealing services, analysis and advice to customers.
Commercial Companies
- Companies engaged in international trade they use currency market as a means of protecting themselves from unfavorable moves in the market.

Слайд 18

FOREX Market Participants
Investors and Speculators
It’s estimated that the largest portion of

the FOREX daily volume is from investors and speculators.
A decade ago, this group are only the big and well funded traders. Since internet revolution, the field has changed that small investors can participate and take advantage of the same tools as big traders.

Слайд 19

FOREX Market Participants
Hedge Funds Managers
This is a manage Investment where the

fund manager is authorized
to use derivative and borrowing with the aim of having higher return. They are well known for aggressive currency speculation in the recent years.

Слайд 20

THE TRADE
Buy
Sell
Traders generate profits, or losses, by speculating whether

a currency will rise or fall in value in comparison to another currency.
A trader would buy the currency which is anticipated to gain in value, or sell the currency which is anticipated to lose value against another currency.

Слайд 21

TWO (2) ASPECTS OF TRADING
Fundamental analysis
Focuses on what ought to happen

in a market
Factors involved in price analysis:
1. Supply and demand 2. Seasonal cycles 3. Weather 4. Government policy

Technical analysis
Focuses on what actually happens in a market
Charts are based on market action involving:
1. Price 2. Volume 3. History

Слайд 22

Fundamental Analysis
Thorough analysis of economic and political data with the

goal of determining future movements in a financial market.

Слайд 23

The Importance of Fundamental Analysis
A nation's political condition, along with its

inflation and interest rates, impact the price of the nation's currency. Traders that use fundamental analysis can speculate on currency price movements by paying attention to the world news, economic reports, and indicators issued by the government.

Слайд 24

Technical Analysis
Traders use these technical factors to identify buying and

selling opportunities. Over long historical periods, currency behavior has produced trends and patterns that are identifiable.

Слайд 25

How Trading Works
So how does the actual trading work? A

complete transaction is the buying of one currency and selling of another at the same time.

FOREX

Содержание

Necessary For a Forex TraderThe Four MMan (You)Material (Money for Capital)Machine

WHAT IS FOREX?The Foreign Exchange market (also referred to as the

WHAT IS FOREX?Unlike other financial markets that operate at a centralized

FOREX Trading AdvantageA 24-hour market High LiquidityLow Transaction CostUncorrelated to the

Major Dealer CentersThe major dealer centers and time zones are that

Business Hours of Financial Centers:

Forex, unlike other financial markets, is not tied to an actual

Background Traditionally, Forex has been dominated by inter-world investment and commercial

HOW THE CURRENCY VALUE IS DETERMINED?The exchange rate is determined through

Factors Affecting Supply and DemandTwo primary factors that affect supply and

Operation The 8 Major Currencies: 1. U.S. Dollar ($),2. European

Example of Listed Currency PairsThe FOUR majors EUR/USD USD/JPY USD/CHF GBP/USDOther majors AUD/USD USD/CADCurrency Crosses EUR/CHF EUR/JPY GBP/JPY EUR/GBP

How a Currency Trade Works?Reading a currency quote :GBP/USD ; USD/CHF ; EUR/USD-

FOREX Market ParticipantsCentral Banks They play an important role by keeping

FOREX Market ParticipantsBanks Interbank market provides commercial turnover and huge amounts

FOREX Market ParticipantsInterbank Brokers - Before large FOREX broker facilitate interbank

FOREX Market ParticipantsInvestors and SpeculatorsIt’s estimated that the largest portion of

FOREX Market ParticipantsHedge Funds ManagersThis is a manage Investment where the

THE TRADEBuy SellTraders generate profits, or losses, by speculating whether

TWO (2) ASPECTS OF TRADINGFundamental analysisFocuses on what ought to happen

Fundamental Analysis Thorough analysis of economic and political data with the

The Importance of Fundamental AnalysisA nation's political condition, along with its

Technical Analysis Traders use these technical factors to identify buying and

How Trading Works So how does the actual trading work? A

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