1. CURRENCY TRADING

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

3. Bear Trend

4. 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)

5. Bull Trend

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

7. Currencies can be quoted in 3 ways…

8. 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)

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

10. BUY
BID
PRICE QUOTED:
SELL
ASK

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

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

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

15. 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.

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

17. 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

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

19. Sell in the low trend

20. Buy in the up trend

21. Let your money work for you…