CURRENCY TRADING

Definition: Buying and selling of international currency Two-way profit potential

Bear Trend

Definition: Buying and selling of internal currency Two-way profit potential A single open market in the world operating 24 hours a day Daily transactions amount to about 1.9 trillion dollars (BIS 2001)

Bull Trend

U$ 1.9 TRILLION U$ 500 BILLION U$ 75 BILLION NYSE US BOND MARKET FOREX MARKET

Currencies can be quoted in 3 ways…

7 Major Currencies: GBP / USD (Pound against the US dollar) EUR / USD (Euro against the US dollar) USD / JPY (US dollar against the Japanese Yen) USD / CHF (US dollar against the Chwisfrank) AUD / USD (Australian Dollar against the US dollar) NZD / USD (New Zealand dollar against the US dollar) USD / CAD (US dollar against the Canadian dollar)

In the spot market, prices are quoted TWO WAYS… BID and ASK

BUY BID PRICE QUOTED: 1.1750 - 1.1753 SELL ASK

SPREAD = BID - ASK PRICE QUOTED: 1.1750 - 1.1753 0.0003 (Difference between the BID and the ASK) PRICE QUOTED: 1.1750 - 1.1753 0.0003 SPREAD

PRICE QUOTED: 1.1750 - 1.1751 1 PIP is equivalent to $10 A single point move in a price is called PIP PRICE QUOTED: 1.1750 - 1.1751 0.0001 1 PIP is equivalent to $10 0.0001 x 100,000= $10

PROFIT OPPORTUNITY: 80 points x $10= $800 Minimum 80 points Maximum 300+ points 300 points x $10 = $3000

FX Station Is a web based margin currency trading system using the latest internet technology. It was developed with the traders’ need for fast, safe, efficient and transparent execution system in mind.

FX Station interface is consist of: Dealing Rates Windows Open Position Windows Traders Order Windows Currency Reference Rates Window Accounting Information Windows

Two ways to analyze the market: FUNDAMENTAL TECHNICAL studies the reason behind a price movement whether such factor be economic, political or some other event Focuses on the price and its movement or looks for the pattern using history EXAMPLE : Trade balance Durable goods order Employment Industrial production Retail sale Interest rate Consumer Price Index Non-Farm payroll EXAMPLE : Relative Strength Index Stochastic Oscillator Moving Average Top and Bottoms Double Bottom Elliott Wave Hammer Formation Flag Formation

Basic Rule in Trading: “BUY Low and SELL High”

Sell in the low trend

Buy in the up trend

Let your money work for you…