BEGINNERS CLASS 1

• WHAT IS FOREX
• WHO TRADES FOREX
• WHAT IS TRADED IN FOREX
• BEST TIMES TO TRADE THE FOREX MARKET
• BUYING AND SELLING IN FOREX
• SETTING UP YOUR DEMO ACCOUNT
WHAT IS FOREX
BUYERS VS SELLERS
WHO TRADES FOREX
MAJOR MARKET PARTICIPANTS

KEY PLAYERS IN THE FOREX MARKET

WHY IT IS THE MOST LIQUID
FINANCIAL MARKET IN THE WORLD
5.7 TRILLION USD

22.4 BILLION USD

18.9 BILLION USD
7.2 BILLION USD

LONDON STOCK TOKYO STOCK NEW YORK STOCK FOREX MARKET

EXCHANGE EXCHANGE EXCHANGE
WHAT IS TRADED IN THE FOREIGN
EXCHANGE MARKET
EXOTIC PAIRS ARE NOT HEAVILY TRADED LIKE THE MAJOR CURRENCY PAIRS, THEY ARE EMERGING
CURRENCIES AND AS SUCH IT COSTS YOUR BROKER HAS TO DO AN EXTRA WORK TO PAIRYOU
WITH SOMEONE WHO YOU WOULD TRADE THEM WITH, HENCE COSTING YOUMORE MONEY
WHICH IS WHY THE SPREADS ARE HIGHER
WHEN TO TRADE THE FOREX MARKET.

• The Best Hours for Forex Trading Currency trading is unique because of its hours of
operation.The week begins at 6 p.m. EST on Sunday and runs until 5 p.m. on Friday. Not
all hours of the day are equally good for trading.The best time to trade is when the
market is most active.
BEST TRADING TIME
 BUYING AND SELLING
BUY – LONG

When the value of a

currency is expected to
go up, you buy.

SELL – SHORT

When the value of a

currency is expected to
fall, you sell.
SUPPLY AND DEMAND

THIS STATES THAT WHEN THE

DEMAND FOR A CERTAIN
COMMODITY IS HIGH,THE
PRICE GOES UP. SAME WITH
WHEN THE SUPPLY IS LOW.

IN FOREX YOU ANALYZE

WHEN A CURRENCY PAIR IS
ABOUT TO APPRECIATE
AND YOU BUY SO THAT AS
THE PRICE GOES UP, YOU
MAKE MONEY. AS WELL AS
SELL WHEN IT IS HIGH.
 The
movement of
the market is
defined on the
balance scale
of SUPPLY
& DEMAND
BEST TIMES TO TRADE THE MARKET
ASSIGNMENT

• 1.What is FOREX?
• 2.Who trades in the FOREX MARKET?
• 3.What platform is used in trading?
• 4. Name 10 currencies used in trading in the FOREX MARKET?
• 5. How many trading sessions do we have and name them?
• 6. Name 5 Major, Minor and Exotic Pairs?
• 7. Do we trade on Saturdays? And why?
BEGINNERS CLASS 2

• WHAT IS A PIP
• QUOTE AND BASE CURRENCY
• WHAT ARE LOT SIZES AND LEVERAGE
• PENDING ORDERS
• STOP LOSS AND TAKE PROFITS
• DIFFERENT TYPES OF ANALYSIS
• UNDERSTANDING YOUR TRADING WINDOW
 PRICE INDEX POINTS

PIP is the movement of the market on the

positive or negative direction.
PIP VS PIPETTES

• A pip is the smallest price move that a given exchange rate makes based on market
convention. Since most major currency pairs are priced to four decimal places, the
smallest change is that of the last decimal point; for most pairs, this is the equivalent of
1/100 of 1%, or one basis point. E.g EURUSD - 1.14086.The last digit (6) is called a
pipettes, the second to the last digit (8) is called a Pip.
• Meaning, when calculating your pip movement you always start with the digit before the
last digit.“To a layman” - A pip is the number of steps the market has moved either in
your favor or against you.
THE UNIT OF MEASUREMENT TO SIGNIFY THE CHANGE IN VALUE
BETWEEN TWO CURRENCIES IS CALLED A PIP. IF GBPUSD MOVES
FROM 1.35361 TO 1.35371 THAT .0001 RISE IN VALUE IS CALLED A
PIP
A PIP IS USUALLY THE LAST DECIMAL PLACE OF A QUATE. MOST PAIRS GET TO 4
DECIMALS BUT THERE ARE EXCEPTIONS LIKE THE JPY PAIRS. THEY GO OUT AT 2
DECIMAL PLACES.
HOW TO CALCULATE PIPS – EXAMPLE 1

• QUESTION - Calculate 50pips TP and 20pips SL for a buy order on EURUSD, if your
entry price is 1.14086
• ANSWER - To calculate your TP for a buy order your will ADD the number of Pips to
the entry price to get the correct TP and to calculate the SL you SUBTRACT the number
of Pips from the entry price to get the correct SL.
Price for Take Profit (TP) 1.14086 + 50pips = 1.14586 answer.
Price for Stop loss (SL) 1.14086 - 20pips = 1.13886 answer.
HOW TO CALCULATE PIPS – EXAMPLE 2

• QUESTION - Calculate 45pips TP and 25pips SL for a sell order on EURUSD, if your
entry price is 1.14086
• ANSWER - To calculate your TP for a sell order your will SUBTRACT the number of
Pips to the entry price to get the correct TP and to calculate the SL you ADD the
number of Pips from the entry price to get the correct SL.
• Price for Take Profit (TP) 1.14086 - 45pips = 1.13636 answer.
• Price for Stop loss (SL) 1.14086 + 25pips = 1.14336 answer.
 BASE & QUOTE CURRENCY

YOU BUY THE PAIR IF YOU BELIEVE THE BASE CURRENCY WILL INCREASE

YOU SELL THE PAIR IF YOU BELIEVE THE BASE CURRENCY WILL DECREASE
LOT SIZES & LEVERAGE
 LEVERAGE

You are probably wondering how a small investor like yourself can trade such
large amounts of money.
Think of your broker as a bank who basically fronts you $100,000 to buy
currencies.

All the bank asks from you is that you give it $1,000 as a good faith deposit, which
it will hold for you but not necessarily keep.

Sounds too good to be true? This is how forex trading using leverage works.
UNDERSTANDING YOUR TRADING WINDOW
TYPE OF ORDERS

• MARKET EXECUTION or INSTANT EXECUTION - You are buying/selling at the current

market price.
• BUY LIMIT- You place a pending order below the current market price i.e If price is at 1.14086, a buy
limit will be any price below the current market price - 1.14000.
• BUY STOP - You place a pending order above the current market price I.e If price is at 1.14086, a buy
stop will be any price above the current market price - 1.14200
• SELL LIMIT - You place a pending order above the current market price I.e If price is at 1.14086, a sell
limit will be any price above the current market price - 1.14500
• SELL STOP You place a pending order below the current market price. I.e If price is at 1.14086, a sell
order will be any price below the current market price - 1.13900
BUY STOP
BUY LIMIT
SELL STOP
SELL LIMIT
STOP LOSS & TAKE PROFIT
TYPES OF ANALYSIS
DETERMINING MARKET MOVEMENT USING
INDICATORS, CANDLES ETC.
IF A PARTICULAR COUNTRY IS
DOING WELL,THE CURRENCY IS
EXPECTED TO DO WELL TOO
ASSIGNMENT 2

• 1.What is a PRICE INDEX POINTS?

• 2.Who is a Broker?
• 3. Define the following Balance, Margin, Margin %, leverage, Equity, Free Margin
• 4.Write down 10 currency pairs and identify the Base & Quote currency
• 5. Calculate 150pips TP and 28pips SL for a buy order on USDJPY, entry price is 108.725
• Calculate 145pips TP and 58pips SL for a sell order on EURUSD, if your entry price is
1.14086
INTERMIDATE CLASS

• TAKING TRADES WITH YOUR MOBILE PHONES

• RISK MANAGEMENT
• WHAT IS A TREND
• WHAT IS SUPPORT AND RESISTANCE
• PULLBACKS OR REVERSALS
HOW TO TAKE TRADES WITH YOUR MOBILE PHONE
MARKET EXECUTION
PENDING ORDERS
TRADE HISTORY
WHAT IS RISK MANAGEMENT IN FOREX TRADING

• Forex trade risk is simply the potential loss or profit which occurs as a result of a
change in exchange rates.To minimize the likelihood of financial loss, each investor needs
to have in place some Forex risk management actions, strategies, and precautions.
RISK CALCULATOR
RISK MANAGEMENT
WHAT IS A TREND?

• A trend is a tendency for prices to move in a particular direction over a period. ...
Success with forex market investments is tied to the investor's ability to identify
trends and position themselves for profitable entry and exit points.This article examines
the stages of a forex trend and how they affect investors.
TYPES OF TREND
UPTREND & DOWNTREND
WHAT IS SUPPORT & RESISTANCE IN FOREX
TRADING
• Support occurs when falling prices stop, change direction, and begin to rise. Support is
often viewed as a “floor” which is supporting, or holding up, prices. Resistance is a price
level where rising prices stop, change direction, and begin to fall.
HOW TO IDENTIFY SUPPORT & RESISTANCE
HOW TO IDENTIFY SUPPORT & RESISTANCE LEVELS
S & R LEVELS
DIFFERENCE BTW RETRACEMENTS/PULLBACKS &
REVERSALS
• Retracements are temporary price reversals that take place within a larger trend.
Retracements in an uptrend are characterized by higher lows and higher highs.A
reversal, on the other hand, is when the trend changes direction.
HOW TO IDENTIFY PULLBACKS & REVERSALS
PULLBACKS & REVERSALS
ASSIGNMENT 3

• 1. Mention the type of trade orders and name them?

• 2. If you have an investment of $200 in your trading account.
a. What is the risk reward ratio of $2 loss as against $10 gain?
b. What is the percentage risk on the trade if you loss $2?
• 3. What is another name for pullback and what is the difference btw pullback & a reversal?
• 4. How many types of trend are in the forex market?
• 5. With a diagram, show an uptrend and downtrend with pullbacks?
• 6. With a diagram, show a three level support and resistance level on an uptrend and downtrend channel?
TRADING STRATEGY
(SCALPING)
• 1.Teacup Strategy
• 2. Sherriff Strategy
• 3. Bollinger Band Strategy
• 4. 14/50 EMA Scalping Strategy
QOP FX SAYS

THANK YOU