FOREX

Forex or Foreign Exchange market is a global marketplace for exchanging national currencies.

-Open 24Hrs/5 days a week.

-Monday@2:30 AM- Saturday@ 2:30 AM(India Time).

-Average trading volume is 7.5$ Trillion per day.

WHAT IS TRADED?

-Mainly Currences. (Commodities+ Cryptos are also traded)

8 MAJOR CURRENCIES

1.USD (United States Dollar)

2.CAD (Canadian Dollar)

3.GBP (Great Britain Pound)

4.EUR (European Euro)

5.JPY(Japanese Yen)

6.AUD(Australian Dollar)

7.CHF(Swiss Franc)

8.NZD(New Zealand Dollar)

OTHERS:

1.Gold- XAU (Commodities)

2.BTC (Cryptocurrencies).

BASE AND QUOTE CURRENCY

A currency pair in forex trading is a pair of two national currencies whose values are compared
together. With this pairing, you can immediately tell how much a currency is worth in another
currency.

When you see a pair, the currency that comes first is the base currency.

And Quote Currency is the second currency that appears in the currency pair and is also known
as the ‘counter currency.’

Eg: EUR/USD. EUR is the base currency and USD is the Quote Currency.
WHO PARTICIPATES IN THE FOREX MARKET?

-Commercial Banks

-Central Banks

-Investment Managers and Hedge Funds

-Retail Traders

-Corporations and Governments.

TOP CURRENCY TRADERS

WHEN TO TRADE?

GLOBAL STOCK MARKET SESSION

-AUD(Australia): 2:30am- 10:30am

-JPY (Japan): 4:30am - 12:30pm

-EUR (Europe): 12:30pm - 8:30pm

-GBP(London): 1:30pm - 9:30 pm

-USD (New York): 6:30 pm - 2:30am

PIPS

The smallest unit by which the price of a currency pair can change. Pip is an abbreviation for
Percentage in Point or price interest point. And it’s the unit of measurement used to express the
change in value in a particular currency pair.
HOW TO COUNT PIPS?

1.Non JPY Pairs:

Starts counting from 4 digits after the decimal.

2.JPY Included Pairs:

Starts Counting from 2 digits after the decimal.

NOTE: Use Date and Price Range Tools for counting pips.

LOT SIZE:

SOME EXAMPLES:
If market moves 10 pips.According to your lot size,.how much profit are you going to make?

-For Standard lot, 10$ per pip. So,10x 10=100$.

-For Mini Lot, 1$ per pip.So, 1x 10= 10$.

- For Micro Lot,10 cents per pip. So, 0.10x 10= 1$.

Note: Multiply lot volume with 10.

Lot Value= Risk/Stoploss = $per pip

THINGS TO KNOW BEFORE YOU MAKE A TRADE:

1.Entry Point.

2.Stoploss (Stoploss is very important because it will protect you from heavy losses)

3.Target Profit/TP

4.Exit Point

5.Risk-Reward Ratio.

FOREX PAIR WATCHLIST:

For beginners, add only 3 pairs: EUR/USD,GBP/USD,DXY

ADVANTAGE FOR FOREX TRADERS LIVING IN INDIA:You can trade all session.Good
Timezones.