FOREX TRADING

STEP BY STEP FULL KCOURSE IN FOREX TRADING

UNDERGRADUATE/BEGINNERS LEVEL

 FOREX A-Z, BEGINERS TO PRO BLUEPRINT COURSE

- UNDERGRADUATE/BEGINNERS LEVEL
- MASTERS/INTERMEDIARY LEVEL
- PHD/ADVANCE LEVEL

 TOOLS NEEDED FOR THE COURSE

- A computer/laptop is needed
- Phone (mobile phone)
- Internet connection
- A separate book to take notes along the course
 REASONS?
- Computer/laptop- you need a computer or laptop so that you can easily analyze, execute
and trade effectively, serious trading is done on your computer
- Phone (mobile phone)- you need a mobile phone so that you will be able to monitor and
manage your trades easily even if it 1GB Ram phone.
- Stable internet connection: forex trading is 24 hours on the internet, so look for a reliable
connection or network.
- A book- get yourself a very stylish and nice book so that you will be able to document
each lesson you learn and draw your trade line, support and move.
 All recommended software will be in the course.

Forex trading

- What is software trading- Art

- What is forex – Big concept
- Size of the forex trading market
- What is traded in forex
- Where is forex traded
- Currency structure
- Major currencies
- Currencies nicknames
- Difference between a currency and a currency pair
 What is forex?
 Forex is a global decentralized or over the counter market for trading of currencies. This
market determines foreign exchange rates for every currency, it includes all aspects of
buying and selling and exchanging currencies at determined price. IN SIMPLE TERM
Forex is a global financial market where currencies are been traded.
Forex is just the word then the art is forex trading
Forex FX stands for Foreign Exchange
 SIZE OF THE FOREX MARKET

AERAGE DAILY TRADING VOLUME

$22.4 Billion

$18.9B
Billion

$7.2B
Billion

Forex New York stock Tokyo Stock London Stock

$6.6 Trillion exchange Exchange Exchange
$22.4 Billion $18.9 Billion $7.2 Billion

Forex is the largest financial market in the world with 6.63 million daily trading volume

 Where is forex traded and real example of a forex transaction

Example of Forest transaction

Remember each country has his currency so trip to the Tokyo Olympics if you are in USA
United States dollar (USD) to Japanese yen in (JPY)-USDJPY
use $1,000 to buy yen at an exchange rate of 100.1.$1,000 times 100.1 is equal to 100100JPY.
So after your trip from Tokyo Olympics and the rate reduce from 100.1 yen - 90.1 there is a
different of 10 pip and in other to go back to US you have to convert the 100.100 JPY back to
dollar at the current price of 90.1 yen you will have $1112 because 1001/90.1 is equal to $1112
same if dollar depreciates.

 Why should you start trading forex now

- Trading hours: the forex market is open 24 hours/ 5 days a week
- Leverage: leverage is the ability to make huge profit with brokers leverage and that is
why you can trade a $1,000 account to $10,000 account with a power of leverage
- Transaction cos:t in forex we have low trading costs as compared to other trading trading
instruments
- Liquidity: liquidity means high trading opportunities and ability to make money on small
market movements
- Ease of asses: with just phone laptop and internet connection you can start trading now

 Currency structure

Which currency consists of a tree alphabet code that is considered internationally as the general
code to recognize the currency.

Country Currency Code

US- United States D-Dollar USD
GB- Great Britain P-Pound GBP
NZ- New Zealand D-Dollar NZD
JP- Japanese Y-Yen JPY
CH-Swiss F-France CHF
NG-Nigeria N-Naira NGN

 MAJOR CURRENCY
There are eight most liquid currencies in the world one USD United States dollar
 EUR euro
 GBP Great Britain pound
 CHF Swiss franc
 AUD Australian dollar
 C a d Canadian dollar
 Nzd New Zealand dollar
 Jpy Japanese yen

 Currency nicknames
Major currencies nickname are as follows:
 1. USD buck
2. E u r fiber
3. GBP cable
4. CHF SWISSY
5. Aud Aussie
6. CAD loonie
7. Nzd kiwi
8. Jpy yen

 Difference between a currency and a currency pair

Firstly for you to be able to trade forex currency have to be pair so you can only make
money when there is a difference in price
- Currency is a system of money in general use in a particular country while
- Currency pair is consist of quotation of two prices-the base and the quote currency

 ALL ABOUT CURRENCIES

- What is a currency pair in forex
- Currency pair structure
- What are the major currency pairs
- What are currency crosses
- Which currency pair should you trade
- What are the exotic currency pairs
 WHAT IS A CURRENCY PAIR

A currency pair is the quotation of two different currencies with the value of one currency being
quoted against the other. The first listed currency of a currency pair s called th base currency and
the second is called the Quote Currency.

Example of the currency Pair

EUR / USD

1 2

Base currency Quote currency

 CURRENY PAIR STRUCTURE

There is a difference between currency structure and currency pair structure.

USD bid / Ask
EUR USD

base quote

Currency selling Euro buying Euro & selling USD

& buying USD

This is currency this is currency pair

 Base: the first currency in any currency pair

 Quote: the second currency in any currency
 Spread: is the difference between the BID and ASK price

 MAJOR CURRENCY PAIR

Major currency pair is a currency pair that has a united state dollar in the pair

For example: major currency pair (CP)

- EUR/USD- EURO ZONE / united states

- GBP/USD- united kingdom / united states
- USD/JPY- United states/ japan
- USD/CHF- united States/Switzerland
- USD/CAD- United States / Canada
- AUD/USD- Australia/ United States
- NZD/USD- New Zealand/United States

 MINOR/CROSS CURRENCY PAIR

- CROS-MINOR CURRENCY PAIR: are other currency pair which doesn’t have “USD”
involved. For example MINOR CURRENCY PAIR (MC)
1. EUR
2. JPY
3. GBP
4. CAD
5. AUD
 6. NZD

EUR JPY GBP CAD AUD NZD

EUR/GBP CHF/JPY GBP/AUD CAD/CH AUD/CHF NZD/CHF
EUR/CHF AUD/JPY GBP/CHF CAD/GBP
EUR/CAD GBP/JPY GBP/CAD AUD/CAD
EUR/AUD CAD/JPY GBP/NZD
EUR/NZD NZD/JPY
EUR/JPY

 EXOTIC CURRENCY PAIRS

Exotic currency pair: is any currency that has one major currency and one emerging market
(EM) currency.

NOTE- emerging means a develop country

For example: EXOTIC CURRENCY PAR (EC)

- USD/MXN-united states dollars vs Mexican Peso

- EUR/TRY- EURO vs Turkish Lira
- USD/ZAR- united states dollar vs south Africa rand
- EUR/SGD-EURO vs Singapore dollar
- USD/NGN- united states dollar vs Nigerian Naira

 LEVEGARE: leverage means that you can trade more money than your initial
deposit, thanks to margin trading
 WHAT TYPE OF TRADE ARE YOU TAKING?

STOP LOSS

- SCALP = few minute 1-10pips

- INTRADAY= few hours 10-40+pips
- DAY= 1-2 days (overnight) 20-80+pips
- SWING= 1+ weeks (over weekends) 80-250+pips
- POSITION = 1 Months + 200-600+pips

EXCHANGE RATES AND MORE

- What is an exchange rate

- How exchange rate are determined
- Fun facts about exchange rate and currencies
  What is an exchange rate:

An exchange rate is the prize of a nation’s currency in relation or relative to another nation or
economy.

 How is the exchange rate determined?

In forex we have floating vs fixed exchange rates.

SUPPLY/DEMAND

Floating ER

- World most depreciate currency

ZIMBABWE dollar: dollar that has 100 Trillion dollars on one NORE. (fixed ER)

 Fun fact about exchange rate and currencies?

- The most valuable currency, is KUWAITI DINAR

One dinar is worth aprroximately $3.30USD

- The British pound is the 5th strongest currency and the UNTED STATE DOLLAR is the
10th strongest in the world.
- The least valuable foreign currency is the IRANIAN RIAL. The current exchange rate is
approximately 43,000 rial to $1USD, or 1rial to $0.0023USD.
- The British pound sterling is the oldest currency in the world.
 WHAT IS A FOREX BROKER

A forex broker, also known as a retail forex broker, BUYS and SELLS currencies on your
behalfs. The benefit of having a forex broker include 24hour market access and the ability to
speculate on currency pairs all over the world.

DIFFERENT WAY TO TRADE FOREX

- Currency option or binary option

- Why binary option are so bad
- Currency ETFs
- Retail forex trading
- Which way should you trade forex
 CURRENCY OPTION OR BINARY OPTION
 Currency option or binary option: a currency binary is a way to make very short term
trade on exchange rates
 BINARY: gives everyone an easy way to participate in the financial market trade as little
as $1USD or currencies in stock index.
 WHY BIANRY OPTIONS ARE SO BAD?

Binary option are embarrassingly bad. They are bad that they have to be marketed everytime
not only that, they are so bad that they use deceptive marketing practices and are made out to
sound like a GET RICH QUICK SCHEME. Which is bad.

 CURRENCY ETFs

Currency RTFs is a basket o many good performing currencies to produce a single more stable
exchange rate and it mostly traded by banks.

Currency ETFs is almost the same as indices.

 RETAIL FOREX TRADING

RETAIL FOREX TRADING: is where a forex provider buys quotes at specific price and intent
to sell them at a specific price.

 WHICH WAY SHOULD YOU TRADE FOREX?

The best and most profitable way to trade in the market is forex.

Forex has the power of leverage

Its ease of entry

Transactional cost – low

High profit margin