BEGINNERS
FOREX BASIC
-
WHAT IS
FOREX..?
Foreign Exchange known as FOREX or retail
forex or FX or Spot FX .
Largest financial market
Value 4 trillion usd/day
Bursa Malaysia only 1B ringgit a day
-
THE FOREX
MARKET (OVER THE COUNTER – OTC)
We trade money
Thru broker/dealer
Traded in ‘pair’ (buy one currency and sell
the other)
No physical involved
Its interbank market/over the counter
Run electronically within the network of
the bank, continuously 24/5
Only forex trading firm offer trading
account to retail traders
-
WHY TRADE
FOREX..?
No commission
No middleman
No fixed lot size
Low transaction costs
24 hrs market
No cornering
Leverage
High liquidity
Free demo account, news, charts, analysis,
expert advisor, indicators etc.
Mini & micro account
Basic : computer & high speed internet
connection
Small capital required
-
WHEN
& WHERE TO TRADE..?
Monday – Friday
24 hrs a day
Can trade from anywhere
|
Time zone
|
MALAYSIA
|
NEW
YORK
|
GMT
|
|
TOKYO OPEN
|
5
AM
|
7
PM
|
0:00
|
|
TOKYO CLOSE
|
2
PM
|
4
AM
|
9:00
|
|
LONDON OPEN
|
1
PM
|
3
AM
|
8:00
|
|
LONDON CLOSE
|
10
PM
|
12
PM
|
17:00
|
|
NY OPEN
|
6
PM
|
8
AM
|
13:00
|
|
NY CLOSE
|
3
AM
|
5
PM
|
22:00
|
TRADING TERMINAL
-
REAL ACCOUNT : used to trade with real money
-
DEMO ACCOUNT : used to practice
Log in to any FX website
Download trading terminal
Open an account (real / demo)
Choose major currencies
Setting chart display
-
HOW TO
READ ON FOREX QUOTE
GBP/USD
= 1.7500
GBP – Base currency / USD - Quote / counter
BUY : you pay 1.75 usd to get 1 pound
SELL : you get 1.75 usd when you sell 1
pound
Long = Buy
Short = Sell
Bid = buying price
Ask = selling price
Always 3 letters eg: USD OR JPY (1st 2 letters
represent country, last letter represent currency)
|
GBP
|
USD
|
|
Bid
|
Ask
|
|
1.7500
|
1.7503
|
|
Sell
|
Buy
|
MOST
POPULAR CURRENCIES
|
SYMBOL
|
COUNTRY
|
CURRENCY (%tage
traded)
|
|
USD
|
UNITED STATE
|
DOLLAR (86.3%)
|
|
EURO
|
EURO MEMBER
|
EURO (37%)
|
|
JPY
|
JAPAN
|
YEN (16.5%)
|
|
GBP
|
GREAT BRITAIN
|
POUND (15%)
|
|
CHF
|
SWITZALAND
|
FRANC (6.8%)
|
|
CAD
|
CANADA
|
DOLLAR (4.2%)
|
|
AUD
|
AUSTRALIA
|
DOLLAR (6.7%)
|
ORDER TYPE
-
MARKET ORDER
-
LIMIT ORDER
-
STOP LOSS ORDER
-
TAKE PROFIT
-
INSTANT & PENDING EXECUTION
FOREX
vs STOCKS vs FUTURES
|
FOREX
|
STOCKS
|
FUTURES
|
|
Only
8 majors
|
Over
1000++
|
Few
hundreds
|
|
Small
capital required
|
big
|
Big
|
|
Free
market
|
controlled
|
Less
control
|
|
Long
lasting
|
Unknown
|
Long
lasting
|
|
No
maturity
|
Has
maturity
|
Has
maturity
|
|
No
middleman
|
Broker
|
Broker
|
|
No
physical
|
No
|
Physical
|
|
High
liquidity
|
Low
liquidity
|
High
liquidity
|
|
24/5
|
No
|
No
|
|
2 way
market
|
One
way market
|
2 way
market
|
|
Free
demo account
|
No
|
No
|
|
Free
tutorial
|
No
|
No
|
|
Free
news & analysis
|
No
|
Yes
|
|
Traded
worldwide
|
No
|
No
|
TYPES OF TRADING & ANALYSIS
-
FUNDAMENTAL ANALYSIS
-
TECHNICAL ANALYSIS
TYPES OF CHART
-
LINE CHART
-
BAR CHART
-
CANDLE STICK CHART
SUPPORT AND RESISTANT
-
TREND LINE
-
CHANNEL
Disclaimer: Trading Forex (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.
