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This is a nice presentation about Forex trading online for all.<br>Beginners, intermediate and advanced.<br>From anywhere in the world.
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FOREX TRADING ONLINE Africa, Europe, Asia, America, Oceania www.tiny.cc/250binaryoptions www.tiny.cc/250forex Free forex trading info on… www.de250.com/digital-forex-trading PRESENTED BY: Jean Claude Rwubahuka, MBA-IB, MSc. Fin. & Banking Tel.: +250(0)788427626 Email: rwubahukajc@gmail.com Website: www.gestoriaconsult.com | Kigali, Rwanda |
HISTORY OF THE CAPITAL MARKET Prior to 1971, speculation was not permitted in the currency markets due to an agreement called the Bretton Woods Agreement. This agreement was set up in 1945 with with the purpose of stabilizing international currencies and preventing money fleeing across nations. This agreement fixed all national currencies against the dollar and set the dollar at a rate of $35 per ounce of gold. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626 W: www.gestoriaconsult.com
HISTORY OF THE CAPITAL MARKET In 1971, the Bretton Woods agreement was finally abandoned and the US dollar was no longer convertible to gold. By 1973, currencies of the major industrialized nations were floating more freely, helped by the forces of supply and demand. Prices were set, with volumes, speed and price volatility, all increasing during the 1970’s. Accelerated with the arrival of computers during the 1980’s, the movement of money across borders became a continuum, trading through the Asian, European and American time zones. The big banks created dealing rooms where hundreds of millions of CURRENCIES were exchanged within minutes.
HISTORY OF THE CAPITAL MARKET London has developed to become the world’s leading international financial center and is the world’s largest Forex market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London’s convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euro market.
Forex or Foreign Exchange Forex means foreign exchange. Sometimes it is also called FX. A simple way to understand the Forex market is to think of it as changing money when you travel abroad. When you change money, you sell one currency and buy another at the current exchange rate. This is because the value of your own currency is not equal to the value of the currency you wish to buy. In effect, you have traded currency and this is very similar to Forex trading. Currencies constantly need to be exchanged in order to conduct business. This makes the Forex market one of the largest, most liquid financial market in the world. The daily volume of trades on the London Stock Exchange is USD 7 billion, whereas the daily volume on the Forex market was $5.3 trillion in April 2013 according to the BIS triennial report.
Forex location Unlike other financial markets the Forex market has no central location or exchange. The market is so large that it is unlikely to be affected by one person or one company – it takes much bigger processes to influence the direction of the market. It works almost the same way as the internet does (World Wide Web). That means that every order from any trader is executed in a global network of demand and supply, called the ECN network (Electronic Network of Banks). That fact adds reliability and transparency into Forex trading transactions. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com
Forex trading Forex trading is the simultaneous buying of one currency and the selling of another. When you trade Forex, you can trade with a broker through a trading platform. Currencies are always traded in pairs, for example GBP/USD (trading the British pound against the US dollar). The first currency in the pair is known as the “base” currency, the second one is the “quote” currency. They are also often referred to as “buy” and “sell” or "offer" and "bid". Daily currency fluctuations are usually very small. Most currency pairs move less than one cent per day, representing a less than 1% change in the value of the currency. This makes foreign exchange one of the least risky financial markets in the world.
Currency Pairs The "majors" and the "commodity pairs" are the most liquid and most widely traded currency pairs in the Forex market. These pairs and their combinations make up the vast majority of all trading in the Forex market. Because these pairs typically have the largest volume of buyers and sellers, they also typically will have the tightest spreads. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com
The 4 Major Currency Pairs 1. EUR/USD: The euro and the U.S. dollar 2. USD/JPY: The U.S. dollar and the Japanese yen 3. GBP/USD: The British pound sterling and the U.S. dollar 4. USD/CHF: The U.S. dollar and the Swiss franc
The 3 Commodity Pairs The three Commodity Pairs are: 1. AUD/USD: The Australian Dollar and US Dollar 2. USD/CAD: The US Dollar and Canadian Dollar 3. NZD/USD: The New Zealand Dollar and US Dollar
Forex Market Participants The most important Forex market participants are: 1. Central and Commercial Banks 2. International Trade Companies 3. Forex Brokers (ECN, STP and Dealing-Desk brokers); 4. Large, Medium and Small Institutional Investors (i.e. Investment Companies, etc.); 5. Common Retail Traders; 6. World Travellers
Forex Brokers Currency traders use brokers to access the 24-hour currency market. A Forex broker is an intermediary between you and the "interbank" (networks of banks that trade with each other). Typically a Forex broker will offer you a price from the banks that they have relationships with. Many Forex brokers use multiple banks for pricing and they offer you the best one available. Besides, brokers provide traders with access to a trading platform that allows them to buy and sell foreign currencies.
Why Trade Forex? 1. Forex is the largest financial market in the world The Forex market is considered to be the largest financial market in the world. Because the currency markets are large and liquid, they are believed to be the most efficient financial markets. It is important to realize that the foreign exchange market is not a single exchange, but is constructed of a global network of computers that connects participants from all parts of the world. It has huge trading volume representing the largest asset class in the world leading to high liquidity. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com
Why Trade Forex? 2. Markets are open 24 hours a day, 5 days a week The Forex market has continuous operation: 24 hours a day except weekends. The Forex market never sleeps. This is awesome for those who want to trade on a part- time basis, because you can choose when you want to trade: morning, noon, night, during breakfast, or in your sleep. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com
Why Trade Forex? 3. Highest liquidity The foreign exchange market is the most liquid financial market in the world. Traders include large banks, central banks, institutional investors, currency speculators, corporations, governments, other financial institutions, and retail investors. The average daily turnover in the global foreign exchange and related markets is continuously growing. According to the 2010 Triennial Central Bank Survey coordinated by the Bank for International Settlements average daily turnover was $3.98 trillion in April 2010.
Why Trade Forex? 4. High Leverage In Forex trading a small margin deposit can control a much larger total contract value. For example, a Forex broker may offer leverage of 1:100, which means that a $50 dollar margin deposit would enable a trader to buy or sell $5000 worth of currencies. Similarly, with $500 dollars, one could trade with $50000 dollars and so on. Remember this high degree of leverage can lead to large losses as well as gains. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com
Why Trade Forex? 5. No additional commission and low trading cost Trading Forex has much lower transaction costs than other investment products. Most Forex accounts trade without a commission and there are no expensive exchange fees or data licenses. Traders just pay the spread (the difference between the buying price and the selling price) to enter the market. This spread can be wide and is a significant cost of trading which is always displayed on your trading screen. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com
Why Trade Forex? 6. Ease of access The Forex market is the largest and most liquid market in the world, it has become one of the most popular markets to trade globally due to its ease of access and availability. Online Forex brokers give traders of all levels easy access to forex trading platforms, meaning that the world of online trading has never been more accessible. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: 0788427626W: www.gestoriaconsult.com
How to Succeed in Forex? To succeed in trading you need: 1. To choose a reliable broker with an impeccable reputation; 2. To strive to fill all the gaps in your knowledge of Forex; 3. To use a professional and convenient Forex trading terminal; 4. Not to rush to immediately earn millions 5. To be prepared for losses, think of them as a part of Forex trading; 6. Not to let your passion take over your sense. Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: 0788427626W: www.gestoriaconsult.com
TRADING PLATFORMS www.tiny.cc/250binaryoptions www.tiny.cc/250forex Free forex trading info on… www.de250.com/digital-forex-trading Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com
THANK YOU !!! www.facebook.com/gestoriarwanda www.twitter.com/gestoriarwanda Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: 0788427626W: www.gestoriaconsult.com