forex training

Admiral Markets

“What is FOREX”

What is FOREX?

• The Foreign Exchange market, also referred to as "Forex" or "Retail Forex“ or "FX"

• "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of more than $6 trillion a day.

• If you compare that to the $50 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is.

• It actually equates to more than three times the total amount of the stocks and futures markets combined! Forex rocks!

Oooh, the NYSE looks so puny compared to forex! It doesn't stand a chance!

The currency market is over 53 times BIGGER! It is HUGE! But hold your horses, there's a catch!

What is Traded?Major Currencies

USD United States Dollar

EUR Euro Zone Members Euro

JPY Japan Yen

GBP Great Britain Pound

CHF Switzerland Franc

CAD Canada Dollar

AUS Australia Dollar

NZD New Zealand Dollar

Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency.

Currencies Are Traded in PairsForex trading is the simultaneous buying of one currency and selling another.

Imagine each pair constantly in a "tug of war" with each currency on its own side of the rope. Exchange rates fluctuate based on which currency is stronger at the moment.

Major Currency PairsThe currency pairs listed below are considered the "majors“

Pair Countries FX Geek Speak

EUR/USD Euro zone / United States "euro dollar"

USD/JPY United States / Japan "dollar yen"

GBP/USD United Kingdom / United States "pound dollar"

USD/CHF United States/ Switzerland "dollar swissy"

USD/CAD United States / Canada "dollar loonie"

AUD/USD Australia / United States "aussie dollar"

Market Size and LiquidityThe forex market is considered an Over-the-Counter (OTC), or "Interbank", market due to the fact that the entire market is run

electronically, within a network of banks, continuously over a 24-hour period.

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The Dollar is King

• The United States economy is the LARGEST economy in the world.

• The U.S. dollar is the reserve currency of the world.• The United States has the largest and most liquid financial

markets in the world.• The United States has a super stable political system.• The United States is the world's sole military superpower.

Advantages of Forexwith Admiral Markets

No commissions No middlemen

No fixed lot size

Low transaction costs A 24-hour market

No one can corner the market

Leverage

High Liquidity.

Market Players

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The Super BanksLarge Commercial Companies

Governments and Central BanksThe Speculators

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies.

• The Forex market is considered an Over-the-Counter (OTC) or 'Interbank‘ market.

• The entire market is run electronically, within a network of banks, continuously over a 24-hour period.

• Until the late 1990's, only the "big guys" could play this game.

• Forex was originally intended to be used by bankers and large institutions - and not by us, retail customers. However, because of the rise of the Internet and global economy, we, the retail investors are an important part of all markets.

• Admiral Markets is now able to offer trading accounts to 'retail' traders like us.

• All you need to get started is a computer, an Internet connection, and the information contained within this site http://www.admiralmarkets.in/

Trading Sessions

• Now that you know what forex is, why you should trade it, and who makes up the Forex market, it's about time you learned when you can trade. Yes, it is true that the forex market is open 24 hours a day, but that doesn't mean it's always active the whole day.

• You can make money trading when the market moves up,

• And believe us, there will be times when the market is as still as the victims of. This lesson will help determine when the best times of the day are to trade.

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Market Hours

Time zone IST

SYDNEY OPENSYDNEY CLOSE

6:00 AM3:00 PM

TOKYO OPENTOKYO CLOSE

7:00 AM4:00 PM

LONDON OPENLONDON CLOSE

12:30 AM 9:30 PM

NEWYORK OPENNEWYORK CLOSE

6:30 PM 2:30 AM

Best Days of the Week to Trade

Below is a chart of average pip range for the major pairs for each day of the week:

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Worst Times to Trade:

• Sundays - everyone is sleeping or enjoying their weekend!

• Fridays - liquidity dies down during the latter part of the U.S. session.

• Holidays - everybody is taking a break.• Major news events - you don't want to get

whipsawed!• During American Idol, the NBA Finals, or the

Superbowl.

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How You Make Money in Forex

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EUR/USD 0.10 10,000 1 $

0.20 20,000 2 $

0.30 30,000 3 $

0.50 50,000 5$

0.60 60,000 6$

0.80 80,000 8$

1.00 1,00,000 10$

3.00 3,00,000 30 $

5.00 5,00,000 50$

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Admiral-Trader

1) Commodities market• Oil • Gold• Silver• Industrial Commodities• Soft Commodities

3) Equities Market• Stocks and Bonds (stocks of US companies, bonds from the US and German markets);• Contracts for indices: USA, UK, France, Tokyo, Warsaw,India and many more.

2) Currency Market(Forex)• Largest market in the world• Open 24h a day, 5 days a week.

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Commodities are quoted in U.S. dollars, thus the weakening of the U.S. currency increases the interest

in commodities, because they are cheaper for investors having other currencies, therefore prices of

commodities go up because of higher demand.

Market Correlations (commodities - example)

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EURUSD vs. GOLD

Most Traded currencies of all is EUR /USD, being 86% of all transactions.

Margin (initial deposit)

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• Margin blocked when opening a transaction;

• It allows the use of leverage;

• Margin amount (standard): 1% of nominal for currencies

2% of nominal for indices

3% of nominal for commodities

7% of nominal for equities

Margin allows you to open a large number of trades with a small commitment of capital.

Free “Demo” Accounts, News, Charts, and Analysis

• Admiral Markets offer 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free!

• These are very valuable resources for EAGER TO LEARN traders who would like to hone their trading skills with 'play‘ money before opening a live trading account and risking real money.

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Demo Trading

• You can open a demo account for free with Admiral Markets. This account has the full capabilities of a "real“ account.

• Why is it free? It's because the Admiral Markets wants you to learn

the ins and outs of their trading platform, and have a good time trading without risk, so you'll fall in love with them and deposit real money.

• The demo account allows you to learn about the Forex markets and test your trading skills with ZERO risk.

You can be a winner at ‘Admiral Markets’, but as in

all other aspects of life, it will take hard work, dedication, a little luck, a lot of common sense, and

good judgment ’’

Thanks for your attention

Admiral Markets Ashwin Peswani

+91-9503026000 ashwin@admiralmarkets.in

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