Greenvault

ACCESS TO GLOBAL

INVESTMENT OPPORTINITIES…

An introduction to Foreign Currency

and Commodity Trading

By

GREENVAULTFX

WHAT IS FOREX?

FOREX = FOReign Exchange.

You can trade 24 hours a day.

The FOREX is larger than all other financial markets COMBINED.

Forex or Foreign Exchange is the simultaneous buying of one currency and the selling of another.

The Foreign Exchange (FOREX) market is a cash (or “spot”) interbank market established in 1971 when floating exchange rates began to materialize. This market is the arena in which the currency of one country is exchanged for those of another and where settlements for international business are made.

The FOREX is a group of approximately 6500 currency trading institutions, including international banks, government central banks and commercial companies.

LEVELS OF A TRADER

LEVEL ONE: Beginner Trader - To study and paper trade for a minimum of one month with imaginary money, gaining the experience required to establish a track record of profitable performance.

LEVEL TWO: Advanced Beginner - To trade one or two lots with real money, working through emotions and establishing a track record of making money.

LEVEL THREE: Competent Trader - To trade in control with equity management, achieving a financial return.

LEVEL FOUR: Proficient Trader - To trade based on my belief, education, and experience and achieves a financial return.

LEVEL FIVE: Expert Trader - To mechanically execute profitable trades with no emotion.

THE 10 KEYS TO SUCCESSFUL TRADING

Key 1: Equity Management

Key 2: Buy and Sell Signals

Key 3: Bulls vs. Bears – Introduction to Highs, Lows, Support and Resistance

Key 4: Price Swings

Key 5: Fibonacci Ratios

Key 6: Trends and Trend lines

Key 7: Trading Trends with Fibonacci Ratios

Key 8: Trading Trend Reversals or “The King’s Crown”

Key 9: Trading Consolidation with Fundamental Announcements

Key 10: Protective Stop Losses and Law in Trading

CHARACTERISTICS OF FX MARKET

Largest of all financial markets with average daily turnover of over $2 trillion!

66% of all foreign exchange transactions involve cross-border counterparties.

Only 11% of daily spot transactions involve non-financial customers.

London is the largest FX market.

US dollar involved in 87% of all transactions.

The foreign exchange market is the mechanism by which participants:

transfer purchasing power between countries;

obtain or provide credit for international trade transactions, and

minimize exposure to the risks of exchange rate changes.

INCREASING TURNOVER

HOW DOES IT WORK…

Exchange

Traders

Broker

Broker

Broker

Individual trader connected to each other through a network of licensed broker & exchanges

Globally there are……100s of exchanges…1,000s of brokers…1,000,000s of traders

Traders Traders

WHO ARE THE VARIOUS STAKEHOLDERS…

ExchangeBroker

Broker

Broker

Individual trader connected to each other through a network of licensed broker & exchanges

Pvt Large BrokersTraders can be

individuals, banks,

institutional

investors,

governments, large

corporations etc

Traders can be individuals, banks,

institutional investors,

governments, large corporations

Government &Quasi Government

TradersTraders

Traders

MARKET PARTICIPANTS

Banks and a few nonbank foreign exchange dealers operate in both the interbank and client markets.

They profit from buying foreign exchange at a “bid” price and reselling it at a slightly higher “offer” or “ask” price.

Dealers in the foreign exchange department of large international banks often function as “market makers.”

These dealers stand willing at all times to buy and sell those currencies in which they specialize and thus maintain an “inventory” position in those currencies

Central banks and treasuries use the market to acquire or spend their country’s foreign exchange reserves as well as to influence the price at which their own currency is traded.

They may act to support the value of their own currency because of policies adopted at the national level or because of commitments entered into through membership in joint agreements such as the European Monetary System.

The motive is not to earn a profit as such, but rather to influence the foreign exchange value of their currency in a manner that will benefit the interests of their citizens.

As willing loss takers, central banks and treasuries differ in motive from all other market participants.

MARKET TIME

IMPORTANT CURRENCIES

TYPES OF ACTIVITIES

Speculation

An activity that leaves one open to exchange rate fluctuations where one aims to make a profit.

Hedging

Allows the firm to transfer exchange rate risk inherent in foreign currency transactions or positions.

Arbitrage – take advantage of inconsistent prices to make risk-free profits. These profits are unlikely to last long.

FACTORS INFLUENCING CURRENCY PRICES

Fundamental or Technical

The two basic approaches to analyzing the currency market are Fundamental Analysis and Technical Analysis. The fundamental analyst concentrates on the underlying causes of price movements, while the technical analyst studies the price movements themselves.

Fundamental Analysis

Economic (GDP growth, Trade gap, unemployment, interest rates, inflation, etc)

Social/Political (pending elections, change in governments, change in government policies, wars, terrorist attacks etc)

Geopolitical forces (earth quakes, tsunamis, floods, draught, failure of monsoons etc)

These drive supply and demand.

Be aware when announcement are due. Sometimes the expert are wrong and get caught by unpredictable actions.

TECHNICAL ANALYSIS Technical analysis focuses on the study of price movements. Historical currency

data is use to forecast the direction of future prices.

The primary tools of the technical analyst are charts. Charts are used to identify

trends and patterns in order to find profit opportunities. Being able to identify

trends in their earliest stage of development is the key to technical analysis.

PRICE QUOTE

Foreign currency dealers provide two quotes:

Bid Price: Price at which the dealer is willing to buy foreign currency from you.

Ask Price: Price at which the dealer is willing to sell foreign currency to you.

It is always the case that the Ask Price > Bid Price. The difference is the Bid-Ask spread.

The less traded and more volatile a currency, the greater is the spread.

THE THREE ESSENTIAL PRINCIPLES

Market action discounts everything

The actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. The pure technical analyst is only concerned with price movements, not with the reasons for any changes.

Prices move in trends

Technical analysis identifies patterns of market behavior that have long been recognized as significant. For many given patterns there is a high probability that they will produce the expected results. There are recognized patterns that repeat themselves on a consistent basis .

History repeats itself

Forex chart patterns have been recognized and categorized for years and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time.

2 SIMPLE STEPS TO START TRADING IN

FOREX

Chicago Futures Exchange

From SB AccountTransfer Minimum US $ 5,000

Segregated account with Greenvault FX Managed online by the user directly through username and password

2

India New ZealandAnywhere

Earnings can be repatriated back to India or forwarded to any of your accounts anywhere in the world

1

Sign agreementwith broker Exchange

REGULATIONS RELATED TO FOREX TRADING IN INDIA Resident Indians can trade in currency through various Indian financial institutions

today

However, currently the resident Indians cannot trade in currency pairs not involving the Indian Rupee, (like the USD/GBP) with any scheduled bank or such other agency falling under the regulatory purview of the Reserve Bank of India

Therefore to trade in such currency pairs, one will have to transact Forex trades outside India

RBI, through the provisions in the Master Circular No.05 /2009-10 dated July 1, 2009under Clause A-13 Liberalized Remittance Scheme of USD 200,000 for Resident Individuals resident Indians can remit up to USD 200K per annum out of India without RBI clearance

RBI also confirms that resident individuals are free to acquire and hold immovable property or shares (of listed companies or otherwise) or debt instruments or any other asset outside India without prior approval of the Reserve Bank.

Individuals can also open, maintain and hold foreign currency accounts with a bank outside India for making remittances under the Scheme without prior approval of the Reserve Bank.

Greenvault FX is headquartered in New Zealand and is authorized and regulated by Financial Services Complaints Ltd (FSCL) of New Zealand. We are an international brokerage house in the Forex Exchange trading providing top quality financial and investment services all over the world. Trading currencies, precious metals, energy and commodities; advanced technologies to meet the individual needs of beginners or experts along with transparency and security are the key services that Greenvault FX offers its Clients.

Our mission is to provide exemplified service, be it a retail or institutional client in the online Forex trading. We aim at customer-focused policy to foster long term and mutually rewarding relationship with our clients. We work on the entire element like technology, education, support, information that would help our clients make better informed trading decisions.

THANK YOU

All u need is to be successful in Forex Market