INTRODUCTION INTRODUCTION TO TO FOREIGN FOREIGN CURRENCY MARKET CURRENCY MARKET ' Foreign Exchange is fast becoming recognized as the world s ' Foreign Exchange is fast becoming recognized as the world s ' premier trading venue and is the world s largest financial market with ' premier trading venue and is the world s largest financial market with 2 . over US $ trillion traded daily 2 . over US $ trillion traded daily : Benefits of FX trading include : Benefits of FX trading include • Constant access to markets Constant access to markets • Fixed Commission Charges Fixed Commission Charges • 200- -1 to leverage of your funds 200- -1 to leverage of your funds • Competitive rate Competitive rate • / Buy Sell Program / Buy Sell Program WHY FOREX INTRODUCTION INTRODUCTION ACCES S IBILTY ACCES S IBILTY and TRADING and TRADING UNDERSTANDING UNDERSTANDING SCREEN PRICE SCREEN PRICE FUNDAMENTAL FUNDAMENTAL ANALYS IS ANALYS IS TECHNICAL TECHNICAL ANALYS IS ANALYS IS TRADING TRADING STRATEGY STRATEGY OVERVIEW OVERVIEW MARKET MARKET OPPORTUNITY OPPORTUNITY TRADE ACCOUNT TRADE ACCOUNT Forex Trading gives ourclients the opportunity to trade the same Forex Trading gives ourclients the opportunity to trade the same rates and price movements as the large banks and institutions rates and price movements as the large banks and institutions . who once dominated the market . who once dominated the market
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INTRODUCTIONINTRODUCTION TOTO FOREIGNFOREIGN CURRENCY MARKET CURRENCY MARKET
' Foreign Exchange is fas t becoming recognized as the world s ' Foreign Exchange is fas t becoming recognized as the world s ' premier trading venue and is the world s larges t financial market with ' premier trading venue and is the world s larges t financial market with
2 .over US $ trillion traded daily 2 .over US $ trillion traded daily
:Benefits of FX trading inc lude :Benefits of FX trading inc lude
• Cons tant acces s to markets Cons tant acces s to markets• Fixed Commis s ion Charges Fixed Commis s ion Charges• 200- -1 to leverage of your funds200- -1 to leverage of your funds• Competitive rate Competitive rate• / Buy Sell Program/ Buy Sell Program
WHY FOREX
INTRODUCTIONINTRODUCTION
ACCESSIBILTYACCESSIBILTY and TRADING and TRADING
UNDERSTANDINGUNDERSTANDINGSCREEN PRICESCREEN PRICE
FUNDAMENTAL FUNDAMENTALANALYSISANALYSIS
TECHNICAL TECHNICALANALYSISANALYSIS
TRADING TRADINGSTRATEGYSTRATEGY
OVERVIEWOVERVIEW
MARKET MARKETOPPORTUNITYOPPORTUNITY
TRADE ACCOUNT TRADE ACCOUNT
Forex Trading gives our clients the opportunity to trade the s ame Forex Trading gives our clients the opportunity to trade the s ame rates and price movements as the large banks and ins titutions rates and price movements as the large banks and ins titutions
.who once dominated the market .who once dominated the market
FOREXFOREX
THE LARGEST FINANCIAL MARKETTHE LARGEST FINANCIAL MARKET
USD 2 TRILLIONUSD 2 TRILLION DAILY TRANSACTIONSDAILY TRANSACTIONS
The Foreign Exchange Market, also referred to as theThe Foreign Exchange Market, also referred to as the
""FOREXFOREX " " oror " "FX FX " " MarketMarket
FX market is the largest financial market in theFX market is the largest financial market in the world, with a daily average turnover of well overworld, with a daily average turnover of well over
US$ 3.7 trillion – 30-35 times largerUS$ 3.7 trillion – 30-35 times larger than the combined volume of all U.S. equity marketsthan the combined volume of all U.S. equity markets
FOREXFOREX
NON MANIPULATIVE MARKETNON MANIPULATIVE MARKET
Because of the high volume trading, this market is considered as Because of the high volume trading, this market is considered as
Non-Manipulative Non-Manipulative
BENEFIT – CURRENT MARKET, CURRENT PRICES, CURRENT DEALBENEFIT – CURRENT MARKET, CURRENT PRICES, CURRENT DEAL
FOREXFOREX
ELECTRONIC TRADING (E-TRADING)ELECTRONIC TRADING (E-TRADING)
TRADING TROUGHTRADING TROUGH
1.INTERNET 1.INTERNET 2.TELEPHONE2.TELEPHONE
BENEFIT – FAST, ACCURATE, TRANSPARENTBENEFIT – FAST, ACCURATE, TRANSPARENT
FOREXFOREX
NO PHYSICAL LOCATIONNO PHYSICAL LOCATION
BENEFIT – NO CONTROLLING AUTHORITY, DEAL ANYWHERE FROM THE WORLDBENEFIT – NO CONTROLLING AUTHORITY, DEAL ANYWHERE FROM THE WORLD
CURRENCY QUOTESCURRENCY QUOTES
GBP/USDGBP/USD
EUR/USDEUR/USD
USD/JPYUSD/JPY
USD/CHFUSD/CHF
FOREXFOREX
GOLDGOLD
GOLD QUOTE
GOLD/USD
1 Unit = 200 Troy Ounces Gold
DIRECT QUOTATIONSDIRECT QUOTATIONS
GBP / USDGBP / USD
EUR / USDEUR / USD
FOREXFOREX
INDIRECT QUOTATIONSINDIRECT QUOTATIONS
USD / JPYUSD / JPY
USD / CHFUSD / CHF
FOREX Partic ipantsFOREX Partic ipants
BanksBanks Central BanksCentral Banks Hedge FundsHedge Funds Commercial Companies e.g. Import/ Export Commercial Companies e.g. Import/ Export
CompaniesCompanies Investors/ SpeculatorsInvestors/ Speculators
FOREXFOREXBUYBUY SELLSELL
EUR USDEUR USD
GBP USDGBP USD
USD CHFUSD CHF
USD JPYUSD JPY
SIMULTANEOUS BUY OF ONE CURRENCY AND SELL OF OTHERSIMULTANEOUS BUY OF ONE CURRENCY AND SELL OF OTHER
SELLSELL BUYBUY
EUR USDEUR USD
GBP USDGBP USD
USD CHFUSD CHF
USD JPYUSD JPY
We BUY and SELL - EUR, GBP, JPY, CHF AGAINST USDWe BUY and SELL - EUR, GBP, JPY, CHF AGAINST USD
Profit/Loss CalculationsProfit/Loss CalculationsIF GBP or EUR is the Reference CurrencyIF GBP or EUR is the Reference Currency
Calculation for P/L for GBP and EUROCalculation for P/L for GBP and EURO
= {Selling price of Ref Currency – Buying price of Ref = {Selling price of Ref Currency – Buying price of Ref Currency} x Contract Size x No of LotsCurrency} x Contract Size x No of Lots
= = Profit/Loss in US Dollars Profit/Loss in US Dollars
(excluding Facility Fee ie.$120/lot)(excluding Facility Fee ie.$120/lot)
Profit/Loss CalculationsProfit/Loss Calculations
If USD is the Reference Currency,If USD is the Reference Currency,
Calculation for P/L for JPY, CHFCalculation for P/L for JPY, CHF
= = 1 __ 1 __ - - 1 1 x Contract size x No of Lots x Contract size x No of Lots Selling price Buying price Selling price Buying price
= = Profit/Loss in US Dollars Profit/Loss in US Dollars
(excluding Facility Fee ie.$120/lot)(excluding Facility Fee ie.$120/lot)
Buy Open
Sell Close
1.1700
1.1890
Profit = .0190 X 250,000 X 4= 19,000
19,000 US Dollars
In 8 Hours
EURO MARKET OPPORTUNITY
EUR/USD
LIVE TRADING
SELL OPEN AT 1.2050
BUY CLOSE AT 1.1750
PROFIT =
1.2050 - 1.1750 =
.0300 x 250,000 X 4 LOTS
= 30,000 USDPROFIT WITHIN 64 HOURS
EURO MARKET POTENTIAL
Buy Open 2 lots 1.7300Market Came down
Sell Open 2 lots 1.7270
Buy close the sell position 1.7150
Support Area
Resistance Area
Sell close Buy position 1.7340
LOCKING
UN LOCKING
LOCKING STRATEGY
GBP/USD
Profit=1.7340-1.7300=.0040X125,000X2= 1,000 USDProfit=1.7270-1.7150=.0120X125,000X2= 3,000 USD
Net Profit = 4,000 USD
Here the Market was falling, any high point we can sell Sell Open 2 lots 1.7100
But the market went up
We Buy 4 lots 1.7130
Close All Positions 1.7330
Profit= 1.7330-1.7130 = .0200 X 125,000X4 = 10,000 USDLoss= 1.7100-1.7330 = -.0230X 125,000X2 =- 5,750 USD
Net Profit = 10,000 + - 5750 = 4250 USD
SWITCHING STRATEGY
To make profit from a loss Position
GBP/USD
Resistance Broken
BUY
RESISTANCE BREAK 1.7270
1.7160MARKET FALLING
BUY AGAIN
1.7100MARKET FALLING
BUY AGAIN
CLOSE ALL POSITIONS1.7330
AVERAGING STRATEGY
GBP / USD TAKE EXCELLENT PROFIT
Buy Open
Sell Close
548.00
556.00
Profit = 008.00 X 200 X 2= 3,200
3,200 US Dollars
In 1 Hour
GOLD MARKET OPPORTUNITY
GOLD/USD
Triangle Break
Pennant Break
Sell Open
Buy Close
553.00
542.00
Profit = 011.00 X 200 X 2= 4,400
4,400 US Dollars In 4 Hours
Profit Opportunity when Market goes up.
Profit Opportunity when Market goes down.
GOLDen OPPORTUNITYGOLD MARKET OPPORTUNITY
FOREX Market AdvantagesFOREX Market Advantages
Global Financial MarketGlobal Financial Market
24-Hour Market24-Hour Market
Margin TradingMargin Trading
High LiquidityHigh Liquidity
Easily Accessible Data & InformationEasily Accessible Data & Information
Low Dealing CostsLow Dealing Costs
FOREX Market AnalysisFOREX Market Analysis
Fundamental Fundamental AnalysisAnalysis
Factual InfluencesFactual Influences Forecast Economic Forecast Economic
DevelopmentsDevelopments
Technical Analysis Technical Analysis
Study Of Past Trends & Study Of Past Trends & History History
Forecast Future PricesForecast Future Prices Fine Tunes Entry/Exit Fine Tunes Entry/Exit
PointsPoints
FOREXFOREXFundamental AnalysisFundamental Analysis
Factors Affecting FOREXFactors Affecting FOREX
Factors Affecting USD/CHFFactors Affecting USD/CHF
Factors Affecting USD/JPYFactors Affecting USD/JPY
Factors Affecting EUR/USDFactors Affecting EUR/USD
Factors Affecting GBP/USDFactors Affecting GBP/USD
FOREX FOREX Fundamentals- Factors Affecting MarketFundamentals- Factors Affecting Market
• Government PoliciesGovernment Policies Fiscal & MonetaryFiscal & Monetary Others-Price Control/InterventionOthers-Price Control/Intervention
• Political FactorsPolitical Factors Riots, StrikesRiots, Strikes
• Technical & Psychological FactorsTechnical & Psychological Factors Chart PointsChart Points Expectations & SentimentsExpectations & Sentiments
FOREX FOREX Fundamentals- Factors Affecting Market Fundamentals- Factors Affecting Market ((Con’tCon’t ))
• Economic StatisticsEconomic Statistics Trade BalanceTrade Balance Gross Domestic Product (GDP)Gross Domestic Product (GDP) Consumer Price Index (CPI)Consumer Price Index (CPI) Producer Price Index (PPI)Producer Price Index (PPI) Payroll EmploymentPayroll Employment Housing StartsHousing Starts Durable Goods OrdersDurable Goods Orders Retail SalesRetail Sales
• Other Non-Economic FactorsOther Non-Economic Factors Natural DisastersNatural Disasters
Fundamentals-Factors Affect ing Fundamentals-Factors Affect ing USDUSD
Federal Reserve Bank (Fed)Federal Reserve Bank (Fed) Federal Open Market Committee Federal Open Market Committee
(FOMC)(FOMC) US TreasuryUS Treasury Interest Rate- Fed Funds Rate & Interest Rate- Fed Funds Rate &
Discount RateDiscount Rate 30-Year Treasury Bond30-Year Treasury Bond 3-Month Eurodollar Deposit & 3-Month Eurodollar Deposit &
Futures ContractFutures Contract 10-Year Treasury Note10-Year Treasury Note Fed Funds Rate Futures ContractFed Funds Rate Futures Contract Stock MarketStock Market Cross Rate EffectCross Rate Effect Economic StatisticsEconomic Statistics
Fundamentals- Factors Affecting Fundamentals- Factors Affecting GBPGBP
Bank Of England (BOE)Bank Of England (BOE) Monetary Policy Monetary Policy
Committee (MPC)Committee (MPC) Interest Rate- Minimum Interest Rate- Minimum
Lending RateLending Rate GiltsGilts 3-Month Euro-sterling 3-Month Euro-sterling
Deposits & Futures Deposits & Futures ContractContract
FTSE-100FTSE-100 Sterling And EMU Sterling And EMU
MembershipMembership Cross Rate EffectCross Rate Effect Economic StatisticsEconomic Statistics
Fundamentals- Factors Affecting Fundamentals- Factors Affecting EuroEuro
European Central Bank European Central Bank (ECB) Policy Targets(ECB) Policy Targets
Interest Rate- ECB’s Interest Rate- ECB’s Refinancing RateRefinancing Rate
3-Month Euro Deposit & 3-Month Euro Deposit & Futures ContractFutures Contract
10-Year Government 10-Year Government BondsBonds
Political FactorsPolitical Factors Finance MinistersFinance Ministers Economic StatisticsEconomic Statistics Other IndicatorsOther Indicators
Fundamentals-Factors Affecting JPYFundamentals-Factors Affecting JPY
Ministry of Finance (MOF)Ministry of Finance (MOF) Bank Of Japan (BOJ)Bank Of Japan (BOJ) Interest Rate- Overnight Interest Rate- Overnight
Interbank RateInterbank Rate Japanese Government Japanese Government
Bonds (JGBS)Bonds (JGBS) Economic And Fiscal Economic And Fiscal
Policy AgencyPolicy Agency Ministry Of International Ministry Of International
Trade And Industry (MITI)Trade And Industry (MITI) Nikkei-225Nikkei-225 Cross Rate EffectCross Rate Effect Economic DataEconomic Data
FOREXFOREX FUNDAMENTALFUNDAMENTAL ANALYSISANALYSIS
INDICATORS
ECONOMIC ECONOMICINDICATORSINDICATORS
Applying the Fundamental analys is g ive the long term pers pective Applying the Fundamental analys is g ive the long term pers pective , outlook to a given economy the re latives s trength or weaknes s of an , outlook to a given economy the re latives s trength or weaknes s of an
- economy that determine the long term price movement and the - economy that determine the long term price movement and the .factors that affec t financ ial market .factors that affec t financ ial market
Financial Analys t focus c los e ly on the economy indicators with Financial Analys t focus c los e ly on the economy indicators with , ;higher merit that will affec t the financ ial market for example , ;higher merit that will affec t the financ ial market for example
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Technical Analysis (TA)Technical Analysis (TA)
Advantage Of TA over FundamentalsAdvantage Of TA over Fundamentals Prices Tend To Lead The Unknown Prices Tend To Lead The Unknown
FundamentalsFundamentals
3 Assumptions of TA3 Assumptions of TA Prices Moves In TrendsPrices Moves In Trends History Repeats ItselfHistory Repeats Itself Price Discounts EverythingPrice Discounts Everything
Technical Analysis And Time FactorTechnical Analysis And Time Factor
Decision-Making Process:Decision-Making Process:
Patterns And Trends AnalysisPatterns And Trends Analysis Near Term, Intermediate & Long Term Near Term, Intermediate & Long Term
Patterns And TrendsPatterns And Trends
TimingTiming Entry/Exit Points Important Due To High Entry/Exit Points Important Due To High
LeverageLeverage
Technical Analysis InstrumentsTechnical Analysis Instruments
Bar ChartBar Chart
Candlestick ChartCandlestick Chart
Line ChartLine Chart
Trend Lines- Uptrend, Downtrend, Sideways TrendTrend Lines- Uptrend, Downtrend, Sideways Trend
Price Patterns – Reversal, ContinuationPrice Patterns – Reversal, Continuation
Technical IndicatorsTechnical Indicators
TECHNICAL ANALYSISTECHNICAL ANALYSIS
CANDLE STICK CHARTINGCANDLE STICK CHARTING
TECHNICAL analyzing enable both trader and inves tor to identifying the trend of the market and riding on the trend
until the weight of the evidence proves that the trend has. revers ed
Charting reacted to market action and recognizing the formation and the pattern helps both trader and inves tor to . antic ipate future price trends
Day High
Day Low
Open
Clos e
Day High
Day Low
Open
Clos e
Bullish Candlestick
• CHARTS• CHART PATTERNS• TECHNICAL INDICATORS
, Analyzing the market technical analys t identify and utilized Thes e technical tools to determine the trend
Bearish Candlestick
Technical Analysis SummaryTechnical Analysis Summary
Intra-day Trading = Less RiskIntra-day Trading = Less Risk Day Trading = Smaller Margin DepositDay Trading = Smaller Margin Deposit Trend Trading = Greater RiskTrend Trading = Greater Risk Long Range Trading = Larger Margin DepositLong Range Trading = Larger Margin Deposit
Basic Trend ConceptsBasic Trend Concepts– Absolutely Essential To TA Absolutely Essential To TA – To Measure Market Trend, Use Support & To Measure Market Trend, Use Support &
Resistance Levels, Price Patterns & Trend LinesResistance Levels, Price Patterns & Trend Lines
Comparison of FOREX With Other InvestmentsComparison of FOREX With Other Investments
Good
HighHigh
HighHigh
LimitedLimited
InvestmentInvestmentProductProduct
Bank Bank DepositDeposit
Real Real EstateEstate BondsBonds StocksStocks CommoditiesCommodities FOREXFOREX
Capital Capital RequirementRequirement
Margin Margin RequirementRequirement
TypeType
TermTerm
ReturnReturn
RiskRisk
Risk Mgmt Risk Mgmt FlexibilityFlexibility
TransparencyTransparency
LiquidityLiquidity
HighHigh HighHigh HighHigh HighHigh
HighHigh
HighHigh
LowLow LowLow
LowLow LowLow
LowLow LowLow
N/AN/A N/AN/A N/AN/A
N/AN/A
N/AN/A
VariableVariable
ConservativeConservative ConservativeConservative ConservativeConservative
AvailableAvailable AvailableAvailable AvailableAvailable
AdventurousAdventurous AdventurousAdventurous SpeculativeSpeculative
Long TermLong TermMedium/Medium/LongLong Short/LongShort/Long Short/LongShort/Long Short/LongShort/Long
At MaturityAt Maturity
HighHigh
VariableVariable
VariableVariable VariableVariable
Econ&Corp Econ&Corp PerformancePerformance
MarketMarketPerformancePerformance
MarketMarketPerformancePerformance
MarketMarketPerformancePerformance
N/AN/A
FlexibleFlexible FlexibleFlexible AverageAverage
AverageAverage
AverageAverageLiquidLiquid
GoodGood
Demand/OfferDemand/Offer
UNDERSTANDING SCREEN QUOTE UNDERSTANDING SCREEN QUOTE
TELERATE
GBPGBP - REAL TIME CURRENCY PRICE
EUREUR - REAL TIME CURRENCY PRICE
FLASHINGFLASHING CURRENCY PRICE
REAL TIME CHARTCHART UP-DATE
ONLINE FINANCIAL NEWSNEWS UPDATE
JPYJPY – REAL TIME CURRENCY RATES
CHFCHF – REAL TIME CURRENCY RATES
FOREXFOREXACCOUNT
FUND (USD)Telegraphic Transfer (TT)
Development Bank of Singapore with World Index Investment LTD(Open a Trade Account)
CLIENT
1. TRADING PRINCIPAL
Trade Account (under client’s Name)
A/C Number (provided only to the client)
User name & Password (provided only to the client for accessing
the Trading account)
Electronic trading facility (E-trader)
Accurate spot market quotations
2. FINANCIAL INTERMEDIARY
Market Updation Facilities
Trading Facilities (E-trader)
Dealing line Facilities(operations )
Market Consultation
3. IMI
Personalized Attention
Market Updation
Financial Advisor
Trade Plan
Trading Services
FOREXFOREX
PROCEDURE FOR OPENING PROCEDURE FOR OPENING TRADINGTRADING ACCOUNTACCOUNT FUND (US DOLLARS) FUND (US DOLLARS)
Telegraphic Transfer (TT) Telegraphic Transfer (TT)
TRADING PRINCIPAL TRADING PRINCIPAL
FOREXFOREX SIGN THREE CONTRACTSSIGN THREE CONTRACTS
1. TRADING PRINCIPAL1. TRADING PRINCIPAL 2. FINANCIAL INTERMEDIARY COMPANY2. FINANCIAL INTERMEDIARY COMPANY 3. IMI (INDEPENDENT MARKETING INTRODUCER)3. IMI (INDEPENDENT MARKETING INTRODUCER)
Submit all ContractsSubmit all ContractsAttach Passport copiesAttach Passport copies
1. Client1. Client2. IMI2. IMI
Along with TT receiptAlong with TT receipt
Collect User Name and Password from OperationsCollect User Name and Password from OperationsSign the Acknowledgement of password from ClientSign the Acknowledgement of password from Client
Submit the Acknowledgement to OperationsSubmit the Acknowledgement to OperationsAnd Check the Activated Account.And Check the Activated Account.
FOREXFOREX ACCESSIBILITY and TRADING HOURS ACCESSIBILITY and TRADING HOURS
FLEXIBILITES
NEW YORK CLOSE / HONG KONG SINGAPORE OPEN
TOKYO CLOSE
FRANKFURT OPEN
LONDON OPEN
FRANKFURT CLOSE
NEW YORK OPEN
LONDON CLOSE TOKYO OPEN
HONG KONG CLOSE
ROUND THE CLOCK TRADING HOURS AND ROUND THE CLOCK TRADING HOURS AND EASY ACCESS FROM AROUND THE WORLD EASY ACCESS FROM AROUND THE WORLD
00.00 GMT / 4:00 AM UAE
01:00 AM GMT / 5:00 AM UAE
6:30 AM GMT /10:30 AM UAE
7:30 AM GMT / 11:30 AM UAE
12:30 PM GMT / 4:30 PM UAE
6:30 AM GMT /10:30 AM UAE
8:00AM GMT / 12:00 NOON UAE
4:30 PM GMT / 08:30 PM UAE
5:30 PM GMT / 09:30 PM UAE
7:00 PM GMT / 11:00 PM UAE
REALIZE THE REALIZE THE POTENTIAL OF THIS POTENTIAL OF THIS DYNAMIC AND DYNAMIC AND EXCITING MARKETEXCITING MARKET
FOREXFOREX