ONL Ra) WHAT IS FOREX TRADING? Forex (FX) : Foreign Exchange. Forex is the biggest currency market in the world, The market has been opened to everyone to trade sirite 1994 and it’s traded volume can reach up to $5 Trillion every day. Similar to other business, Forex Trading includes the process of buying currency at a low price and selling it Back when the price increased to gain profit, FForex Exchange Is a highly risky market where profit c reach up to 100% in a span of one day. ard C7 i edWHO MOVES THE FOREX MARKET? One of the is ‘Supply and Demand! For Example at the same time the value e dollar increases market, then th of the currency goes down move the market! can also reflect changes in the value of a c ncy. In addition, other rest Rates, new Economie Data from the largest countries and Geopolitical TeRaian etialso affect the price of a country's currency,ON RT Pe Preece) A Maremma ase Mend Aba PLAYERS IN FOREX MARKET TIER 1: Central Banks / interbank (National Banks, BO!, BOC, BOE etc.) PHIER 2: institutions ( City Group, JP Morgan, Goldman Sachs & other Hedge Funds. HIER 3: Retail Traders (TI = cffibank ieacCURRENCIES There are many currencies that can be traded in Forex. ith major currencies which are mostly traded and represent some Of helWGHdatCURRENY PAIR TYPESCROSS CURRENCY PAIRSTIME TO TRADE FOREXTIME TO TRADE FOREX Usually, traders will do their an: ‘ning and start trading around 12PM - 3PM UK time. The most awaited trade is the Eurc hich opens at 3 pm while the US market, which opens at 7pm. The market was brisk between these t ns,PIPS IN FOREX Pipe (Percentage in Points) is the value of the change in a pair. A pip is the sma seenibeimade by an exchange rate based on the Forex market. How to calculate pips: price movement that ‘PIP = 10 Points Br Example: 500 / 10 = SoPiPsfet Order: BUY or ‘SELL’ at the current price. ae Order (PO) rie Orders if TMIT 9 Buy below the current price. ors pa Bell above the current price q x STOP Bbove the current price. Scene [Below the current price. o Buy STOP |LEVERAGE IN FOREX Be ose fs a characteristic feature that enables your trading strategy by using loan money. The goal is to Bet huge profit potential Eevetaeeiis the used of borrowed money (capital) to invest in currency, stocks or security. The concept of Teverage is very common in Forex trading. By borrowing Positions in a currency. ney from a broker, investors ean trade largerBID ASK PRICE AND SPREAD IBid: The price you sell TRe price you buy, Value of ‘Ask’ js usually higher than ‘Bid’ Spread: Difference of Bid/ Ask (Broker Charge). fh ascibo es Sg onretMONEY MANAGEMENT In ‘Money Management’ we will learr LOT SIZE (According to Account size) For Example: Account Size _ Lot Size $100 0.01 $200 0.02 $300 0.03 $500 0.05 $1000 0.10 $2000 0.20 $3000 0.30 Ct ee eole le RISK MANAGEMENT Drawdown (DD) InFotex: a lossis often known as a Drawdown (DD). We have an example below:RISK REWARD RATION (RRR) What are the ways to reduce risk in FOREX trading? ‘We need to set Stop Loss (SL) and Take Profit (TP) on each entry Take Profit: Set a target and take profit. Can be divided into 20 PiPS — 100 PIPs. Stop Loss: Limit the loss. Can be used from entry 30 PIPS - 50 PIPS. Use a step win ratio 4: 2 = 10 PIPS (SL): 20 PIPS (TP) i: 3 = 10 PIPS (SL): 30 PIPS (TP) so on. an e- a- Peed tt ee ed