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Forex Trading Session 3

Forex Trading Session 3. Otis. Trading on the FX Market. We will cover: Trading Trading strategies Trading Tools Any other incidentals. Trading. Simultaneous buying and selling of a pair of currencies. Eg EUR/USD buying this pair means buying EUR and selling USD.

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Forex Trading Session 3

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  1. Forex Trading Session 3 Otis Hands-on Forex trading

  2. Trading on the FX Market We will cover: • Trading • Trading strategies • Trading Tools • Any other incidentals Hands-on Forex trading

  3. Trading • Simultaneous buying and selling of a pair of currencies. • Eg EUR/USD buying this pair means buying EUR and selling USD. • What do you really buy and sell ? Nothing physically. This is all computer generated entries in you account. Hands-on Forex trading

  4. How Much Does a Trade Cost ? The spread initially and the the PnL Hands-on Forex trading

  5. Account Types & Leverage • Standard account 100K lot is bought or sold at a time. • Mini account 10K lot sold or bought at a time. • Non-USD denominated accounts. • The accounting currency is not USD and the system works in your denominated account e.g. GBP, JPY, EUR. Check FXCM. • Use of leverage in trading. • Gives you purchasing power. • 200:1 leverage means you need 1/200 of 100k or 10K per lot for a std or mini account respectively. i.e. 500 and 50 respectively. Hands-on Forex trading

  6. What Is Needed to Start Trading • An Account • Access to trading platform (software) • Good internet connection • Deposit • Knowledge • Treacherous streak (no emotions) Hands-on Forex trading

  7. Getting Demo account • Easy to use software • Most are proprietary • Reliable support with both telephone and chat • Eg FXCM Hands-on Forex trading

  8. Introduction to Rate quotation Hands-on Forex trading

  9. Trading Strategies • Position Trader • Sets a Target for the Trade and Waits • Day Trader • Aims to Make a Profit and Get Out of the Trade. This Would Be for a Few Minutes or Days. Usually These Are Out the Same Day Hands-on Forex trading

  10. Trading Tools Fundamental Analysis Technical Analysis In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store. Hands-on Forex trading

  11. Summary • Rates refer to currency pairs • There are factors that affect every currency • Eg interest rates, inflation, trade balance • Other factors are currency specific • Eg oil,gold CAD, oil inventories USD, • Interest rate differentials fuel carry trade and rate movement Hands-on Forex trading

  12. Where to Get More Information • Other training sessions • Consulting services, other sources • DailyFx.com • Internet • Investopedia • Wikipaedea Hands-on Forex trading

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