FOREX

Prepared by:Mohammad Sabri

&Mariam Reyad

ITI (Intake 31) – SWE 2

THINK!

•Do you want to increase your income!?•Do you want to have your own business!?

AGENDA

Introduction: What is Forex? Forex the market Forex methodology What is a Forex deal? Forex market VS other markets Conclusion: Why Forex?

WHAT IS FOREX?

What does the word FOREX mean?

• The word FOREX stands for:

FOREIGN

EXCHANGE

FOREX THE MARKETForex market description• Markets are places where goods are traded, and the same goes with Forex.

• In Forex markets, the “goods” are the currencies of various countries (as well as gold and silver).

FOREX METHODOLOGY

Unlike stock market, no physical purchase of the currencies… just contracts for amount and exchange rate of currency pairs.

Forex market description (cont.)

FOREX THE MARKETThe Power of Forex • Forex market is the biggest & fastest growing market on Earth.

• In September 2010, Forex turnover hit $4 trillion!!!

FOREX THE MARKETWho can particiapte in Forex?• The participants in this market are:

Central & commercial banksCorporationsInstitutional investorsHedge funds (i.e., Forex companies)Private individuals like YOU .

FOREX METHODOLOGYWhat happens in the market?• E.g., Buying euro with USD, or selling Japanese Yen for Canadian dollars.

• It’s as basic as trading one currency for another.

FOREX METHODOLOGYHow does one profit in Forex?

Buy low and sell high!

• The profit comes from the daily changes in the currency exchange rate.

FOREX METHODOLOGY“Leverage”: Exclusive by Forex! Leverage: is the ratio of your investment to actual value of any deal.

Using a $1,000 to buy a Forex contract with a $100,000 value is called “leveraging” at a 1:100 ratio.

The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.

Investor 1 (USD/EUR)

YOU

I have a Forex deal at 100,000

USD

I only have 1,000 USD

But with Forex, I can

do it

To take the Euros deal, YOU will pay your $1,000 now & Forex will reserve the deal for

you until YOU pay the rest of the money before a certain due date.

YOU

But wherefrom shall I get the rest of

the money?

You can sell the reserved deal

to another investor at a higher price

Investor 1 (USD/EUR)

I have a Forex deal at 100,000

USD

You can borrow

it

Investor 2 (EUR/USD)

YOUR FIRST STEPS IN FOREXHow do I start trading?1.Register 2.Deposit your money3.Start trading!

WHAT IS FOREX DEAL?

A Forex deal: is a contract agreed upon between the trader and the market maker via the Trading Platform.

Components of a Forex deal

1. The currency pairs (which currency to buy; which currency to sell)

2. The principal amount (the amount of currency involved in the deal)

3. The rate (the agreed exchange rate between the two currencies)

Components of a Forex deal

TRADING WITH FOREXHow do I monitor my Forex trading?

Market analysis

& predicti

on

Open deal

TRADING WITH FOREXHow do I monitor my Forex trading?• Online, anywhere, anytime!

• You have full control to: Monitor your trading statusCheck scenariosChange some terms in your Forex dealsClose deals & withdraw profits

FOREX VS OTHER MARKETSAdvantages of Forex market VS other market Available 24/7 Leverage (1:50, 1:100 & 1:200) Two trends of profit (Pair of currencies in every deal to trade with)

Anytime you can close your investments & withdraw your money.

You can determine the limit of the loss.

FOREX VS OTHER MARKETSHow risky is Forex trading? You cannot lose more than your initial investment!

Avoid blind decisions You are strongly advised to never risk more than what you can afford to lose.

Remember!! Do not put all your eggs into one basket!

CONCLUSIONWhy Forex? Flexibility. Availability. Easy to start. Easy learn & try. Easy to control.

FOR FURTHER INFORMATION..

Forex website: http://www.forex.com/uk/ar/index.html

Latest about Forex: http://www.commodityonline.com/news/Global-forex-trade-volume-hits-$4-trillion-31374-3-1.html

Learn about Forex: http://www.wepapers.com/Papers/72180/What_is__Forex

QUESTIONS??

THANK YOU!