Transcription
Forex Tradingi
Forex TradingAbout the TutorialForex Market is an exciting place. The one good thing about entering into the forex marketis that you can trade anytime as per your convenience.The forex market is enormous in size and is the largest market with millions of participants.Hundreds of thousands of individuals (like us), money exchangers, to banks, to hedgefund managers everybody participates in the forex market.This tutorial covers the fundamentals of forex trading.AudienceThis tutorial is prepared for beginners to gain some knowledge before they begin theirjourney with trading. Professional who are already into forex trading can also draw benefitfrom this tutorial.PrerequisitesWe assume that you know the essential terms related to forex trading and the basicstandards of currency trade.Copyright & Disclaimer Copyright 2018 by Tutorials Point (I) Pvt. Ltd.All the content and graphics published in this e-book are the property of Tutorials Point (I)Pvt. Ltd. The user of this e-book is prohibited to reuse, retain, copy, distribute or republishany contents or a part of contents of this e-book in any manner without written consentof the publisher.We strive to update the contents of our website and tutorials as timely and as precisely aspossible, however, the contents may contain inaccuracies or errors. Tutorials Point (I) Pvt.Ltd. provides no guarantee regarding the accuracy, timeliness or completeness of ourwebsite or its contents including this tutorial. If you discover any errors on our website orin this tutorial, please notify us at contact@tutorialspoint.comi
Forex TradingTable of ContentsAbout the Tutorial . iAudience . iPrerequisites . iCopyright & Disclaimer . iTable of Contents . ii1.Forex Trading – Introduction. 2What is Forex? . 2Why Trade Forex? . 2Who Trades Forex? . 3When can you trade forex? . 3Forex Market Hours . 32.Forex Trading – The structure of the forex market . 5Hierarchy of Participants . 6Market Participants . 6Currency pair . 7Commonly Used Currency Pair . 7The Bid-Ask Spread . 9What are Bullish and Bearish Markets? . 9What happens in a Bull Market? . 10What happens in a Bear Market? . 10What is Lot size? . 11What is long in forex trade? . 11What is short in forex trade? . 11What are Pending Orders in Forex Trade? . 11What is Leverage and Margin? . 12Hedging. 13ii
Forex Trading3.Forex Trading – Major Currencies and Trade Systems . 15Major Currencies . 15Different Trade systems on Forex . 174.Forex Trading – Types of Market Analysis . 19Fundamental Analysis. 19When to use fundamental analysis for the forex market? . 19Key factors influencing fundamental analysis . 20Technical Analysis . 21Dow Theory for Technical Analysis . 21Sentimental Analysis . 21What type of analysis is better? . 225.Forex Trading – Kinds of Foreign Exchange Market . 23Spot Market . 23Major Participants on the Spot Exchange Market . 23Forward Market . 24Future Markets . 25Option Market . 256.Forex Trading – Benefits of Trading Forex . 27UNIT 2: DRIVING FORCES BEHIND FOREX MARKET . 297.Forex Trading – Fundamental Market Forces . 31Economic Growth and Outlook . 31Capital Flows. 31Trade Flows and Trade Balance . 32The socio political environment of a country . 328.Forex Trading – Technical Indicators . 33What is a chart? . 33Types of Charts . 33iii
Forex Trading9.Forex Trading – Pattern Study of Trends, Support and Resistance . 38Kinds of Trends . 38Percentage Retracement . 42The Trendline. 4310. Forex Trading – Technical Strategy in Price Patterns . 46Price Action Patterns . 46Pattern Types. 46Building the Price Pattern Rules . 47Strength of a trend: length and steepness of trend-waves . 48Strength of trends: depth of pullbacks . 4911. Forex Trading – Oscillator Divergences . 50Categories of Indicators. 50Relative Strength Index (RSI) . 53Overbought and Oversold . 54Divergence . 54Estimating Price Targets . 5712. Forex Trading – The Role of Inflation . 58Higher and Lower Inflation . 58Gross National Product (GNP) . 59How GDP affects Forex market? . 59Producer Price Index . 59Consumer Price Index (CPI) . 6013. Forex Trading – The Commodity Connection . 61UNIT 3: PUTTING IT TOGETHER . 6214. Forex Trading – Position Sizing & Money Management . 63Determining your Position Size . 63Creating a Forex trading spreadsheet to track your performance . 64iv
Forex TradingForeign Exchange Risks . 6415. Forex Trading – Foreign Exchange Risks .
Forex Trading i About the Tutorial Forex Market is an exciting place. The one good thing about entering into the forex market is that you can trade anytime as per your convenience. The forex market is enormous in size and is the largest market with millions of participants. Hundreds of thousands of individuals (like us), money exchangers, to banks, to hedge fund managers everybody participates .File Size: 2MBPage Count: 75
