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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 [email protected]
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