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The Forex Market

By Alex Nekritin CEO, Traders Choice FX. The Forex Market. What is Forex. The Forex Market allows the end user to speculate on the movements of various currency pairs. The Forex market is the largest market in the world. The average daily trading volume is over $2 trillion USD.

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The Forex Market

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  1. By Alex Nekritin CEO, Traders Choice FX The Forex Market

  2. What is Forex • The Forex Market allows the end user to speculate on the movements of various currency pairs. • The Forex market is the largest market in the world. • The average daily trading volume is over $2 trillion USD. • Participants include: banks, commercial companies, central banks, investment management firms, hedge funds, retail Forex brokers. • Until the late 90’s only big players could trade Forex; with a minimum investment of $10 million. Now, Forex is available to retail traders with as little as a $500 investment. • Through the development of retail Forex brokers, retail spot FX now makes up over 10% of the FX market. • OTC -- No Centralized exchange.

  3. What is Retail FX and why is it so popular? • Low barriers to entry • Start trading with as little as $500 USD • Commonly used instrument • Currencies of different nations (i.e. EUR, USD, GBP, JPY, etc.) • High leverage in FX allows control over large sums of money with just a small investment. • Easy to learn and become educated. • User friendly trading platforms. • 24 hour market, 6 days per week. • Demo trading accounts available to better understand how to trade. • Many ways to take advantage of market. • News Trading • Carry Trading • Scalping • Auto-trading • “Commission Free Trading” • All you need is a fast internet connection and $500 to trade. • Ability to trade in rising and falling markets. No bull & No bear.

  4. How the FX Market works? • Currencies are traded in pairs. Technically, you are borrowing money with the bottom currency to buy the top currency. • For example EUR/USD. You are borrowing USD to buy EUR. • SWAP Rates allow you to collect/pay interest based on your position. • A retail trader is typically leveraged 100:1 • Prices are quoted to the fourth decimal point in the Forex market; called a “PIP” -- Percentage in Point. • Trades occur in lots – One standard lot equals $100,000; making one PIP on $100K the equivalent of $10. • $1000 to trade 1 standard lot equivalent to $100k.

  5. Examples of Forex Quotes

  6. What moves the market? • All factors work with each other; not one is a stand alone factor. • Interest Rates • Interest rates have an impact on the value of a country’s currency. • Economic Growth • A country’s economic state plays a role in currency value. • Geo-Politics • People want to keep money in safer/stable countries. • Trade and Capital Flows • Import/export. Trade balance effects currency price. • Merger and Acquisition Activity

  7. Example of Forex ChartsInterest Rates GBP/JPY

  8. Example of economic growth affect on chart -- EUR/USD

  9. How to predict currency price movements? • Fundamental Analysis: Analyzing the market based on economical fundamentals (those that affect economies of countries) • Technical Analysis: Analyzing the market based on past price movements and chart patterns. • Quantitative Analysis: Analyzing the market based on statistical techniques

  10. Ways to trade Forex. • News trading • Taking advantage of currency movements during economic news releases. • Discretionary trading • Technical • Fundamental • Automated systems • Trading robots that execute trades on behalf of the client without client intervention. • These robots can be built, purchased or acquired by the trader.

  11. Example of price movement during ISM Release 3/1/06 The ISM Manufacturing came out higher than expected which strengthened the US Dollar causing the GBP/USD to fall at 10 am eastern time.Within 10 minutes the market moved over 35 pips.

  12. Popular Trends in the Industry • Charting and Daily Webinars. • Allow groups to trade together. • Software allows traders to spot potentially successful patterns on the trading platform and charts. • Automated Trading • Trade without sitting in front of your computer. • Remove all emotions. • Trade transparency advantage. • Robots always executing trades on client’s behalf • Programming Automated Systems • Automated Packages • Opportunity to select fully integrated automated systems from best developers in the world.

  13. Automated trading platform available through TCFX allows trader to choose from over 50 trading robots from the worlds best traders.Imagine having systems of the best gamblers in the world playing for you.

  14. Business opportunity • Trading volume revenue • Referring Party • What to expect • Regulations and location • Product affiliate marketing • Quality of products (what to market?) • Duration of clients • Client ownership • Informational source • Advertising revenue • Building your list • The idea is to develop multiple revenue streams; both volume and product based.

  15. General direction of the Retail Spot FX Market. • Consolidation • Need proper positioning • Centralization • Retail FX Growth • Youth of the industry • Regulation • Your location • SEC/NFA • Automation • More and more automated systems available. • Superior charting packages • Trading platforms have easy automation capabilities.

  16. What is TCFX how does it benefit you? • Difference between Forex affiliate marketing and casino affiliate marketing: • Regulation. • Hands on support for traders. • Introducing Broker Advantage • Simple rebate program. • Forex related online and offline marketing knowledge. • Over $2 billion in monthly volume traded through our firm allows you to piggyback on our aggregate volume. • Superior customer support staff. • Solid relationships with top level dealing and educational firms. • Superior sales staff. • Over 30 years of market experience can point you to the right products.

  17. TCFX IB in a Box • With the IB in a Box program you will be able to follow our proven method of generating revenues of over $100,000 per month from the Forex industry. • This program is in the initial stages so we can be very flexible about our level of involvement. • Program includes but not limited to: • Customized Forex related marketing campaign and lead generation engine. • Sales staff/tactics/training • Access to top level IB relationships • Our payout rate will be higher due our deep rooted relationships and aggregate volume. • Access to top level charting, educational and trading products • Learn proper sales cycle • Proper incentives to provide traders. • Very flexible program

  18. Thank You! Alexander Nekritin +1 781-444-6969 alexn@traderschoicefx.com

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