By: Benjamin Hooker

 Forex is the foreign currency market  Forex is over-the-counter  Markets are open around the clock

 Forex is the most liquid financial market

Major Banks Electronic Brokering Services Medium and Small Sized Banks Retail Marker Makers, Hedge Funds and Commercial Companies Retail Traders

 EUR/USD  USD/JPY  GBP/USD  USD/CHF  USD/CAD  AUD/USD

 Base currency – the first currency listed  Quote currency – the second currency listed  Pip – equal to 1/100 of a cent  Bid – price at which a currency is bought  Ask – price at which a currency is sold  Spread – difference between Bid and Ask

 Trades are either long or short  Going long is buying the base currency  Going short is selling the base currency

 There are three types of market analysis  Technical Analysis  Fundamental Analysis  Sentiment Analysis

 There are three chart types  Line chart  Bar chart  Candlestick chart  Candlestick charts show the most data  They are also the most popular

 Leverage makes trading more profitable  Major currency pairs offer 50:1 leverage  Minor currency pairs offer 20:1 leverage  This allows traders to buy more lots  Ex. To buy 100,000 of JPY/USD only $200 is needed