Lets Get To Know Forexdssds

LETS GET TO
KNOW FOREX
AN INTRODUCTION TO
TRADING CURRENCIES
A FOREX.COM EDUCATIONAL GUIDE
Forex trading involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk.
LETS GET TO KNOW FOREX

AN INTRODUCTION TO TRADING CURRENCIES
INTRODUCTION: THE BULLS & THE BEARS
WHAT IS FOREX TRADING?
12
14
16
PIPS, LOTS AND LEVERAGE
Four steps to making your first trade in forex
22
23
28
WHAT CURRENCIES CAN I TRADE?
How do i create a trading plan?
How will i analyze the markets?
Get started with FOREX.com
INTRODUCTION
Whether youre a power trader or a financial newbie,
youre likely to hear just about anythingmarket
movements, outlooks and stocksbeing described as
bullish or bearish.
Traditionally, bull markets offer traders an opportunity to enter a
trade by buying a financial product at a low rate and closing the
trade for a profit by selling it at a higher rate. Conversely, bear
markets offer the opportunity to enter a trade by selling at a high
rate to close the trade by buying at a lower rate. Although, many
financial products have restrictions on selling to capitalize on
bear market opportunities.
However, forex does not have these restrictions.

Furthermore, the forex market is open 24/5 and is the
most traded market in the world with an average daily
turnover of more than $3 trillion, giving you trading
opportunities in any market conditions at any time of day.
LETS TALK ABOUT THE

BULLS AND THE BEARS.
A BULLISH TRADER
A BEARISH TRADER
Buys a financial product to sell at

a HIGHER price.
Sells a financial product to buy at

a LOWER price.
IN A TRADITIONAL BULL MARKET

Stocks and bonds are rising in value.
Traders buy to enter the market and
find profit potential.
IN A TRADITIONAL BEAR MARKET

Stocks and bonds are declining in value.
Traders sell to exit the market and minimise losses. Many traditional markets
dont allow traders to sell to enter the
market to find profit potential.
IN THE FOREX MARKET
One currency is always strengthening against another (bullish), and therefore,

one currency is always weakening against another (bearish). Because of this, you
have equal opportunity to buy or sell to enter the market.
ITS TIME TO RETHINK EVERYTHING
YOU KNOW ABOUT BULLS AND BEARS.
You may not realize it, but the bulls
and bears arent at odds. In fact, they
represent two opportunities to find
profit potential in the forex market.
WHAT IS FOREX TRADING?
Also known as foreign exchange or currency

trading, forex is one of the most traded
markets in the world. In forex trading,
traders hope to generate a profit by
speculating on the value of one currency
compared to another. This is why currencies
are always traded in pairsthe value of one
unit of currency doesnt change unless its
compared to another currency.
CURRENCY PAIRS APPEAR LIKE THIS:
A SAMPLE QUOTE FOR THIS PAIR COULD BE:
EUR/USD 1.33820
The first currency

listed is the base
currency.
The second currency

is called the quote
or terms currency.
The base currency is always worth one.

The quoted price shows how much of the
quote currency youll get for one unit of
the base currency. So in this case, 1 EUR
is worth approximately 1.33 USD.
TWO TRADE OPPORTUNITIES

SCENARIO 1:
BUY TRADE
SCENARIO 2:
SELL TRADE
If you believe the current value of the

euro is strengthening against the US
Conversely, if you think the current

value of the euro will weaken against
dollar, you might enter a trade to buy

euros in the hopes that the currencys
value will become stronger compared
to the US dollar. In this scenario, you
think the euro is bullish (and the US
the US dollar, you might enter a

trade to sell euros in the hopes that
the currencys value will become
weaker compared to the US dollar. In
dollar is bearish).
is bearish (and the US dollar is

bullish).
this scenario, you think the euro
DID YOU KNOW?

The buy or sell action you take to enter a trade always applies to the base currency. The
opposite action automatically applies to the quote currency. So, if you buy the EUR/USD, this
means youre buying euros and selling US dollars. If you sell the EUR/USD, youre selling
euros and buying US dollars.
SELL
DID YOU KNOW?

When you exchange currencies
while travelling in a foreign
country, you are technically
selling your currency and buying
that of the country you are
visiting.
EVEN IF YOURE NEW TO FOREX, YOU MAY

HAVE TRADED CURRENCIES BEFORE.
For example, if youve ever traveled to another country, you
had to exchange your native currency for that of the country
you were visiting. At that time, you probably realized that
your one dollar was not exactly equal to one unit of the other
countrys currency: its value was either more or less.
SELLING US DOLLARS AND

BUYING JAPANESE YEN
Exchange Rate Difference
$1 = 102
BUY
Exchanging currencies isnt just for travelers.

The price difference is something you can trade.
In the global economy, thousands of business transactions take place every day that require organizations to
exchange the value of one currency for that of another. When a United States manufacturer buys Japanese
steel, they need to convert dollars to yen to pay the bill. A British clothing retailer converts pounds to euros
to pay for garments from a French textile company. In every exchange, prices need to be adjusted because
one currency is typically weaker (has less value) while the other is stronger (has more value).
WITH SO MANY CHANGES TAKING PLACE, CURRENCY VALUES ARE RARELY STATIC.
Throughout the course of the day, the value of one currency compared to another can change in response
to political news, economics and interest rate changes. This means that a currency that was weaker than
another in the morning may be stronger by the afternoon. These frequent changes in the value of currency
are what drive forex trading and a traders profit potential in the currency markets.
US$819.3 BILLION
DID YOU KNOW?

Forex trading is so popular
that it makes up 95%
of the foreign exchange
transactions on the market.
Conversion transactions
only make up a mere 5% of
the forex market.1
US$84 BILLION
95%
FOREX
TRADING
CONVERSION
TRANSACTIONS
E
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IN VO
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AY
US$4 URS A D K
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24 H YS A WE
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5
.
5
X
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UME
VOL
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1
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8
D
$
A
US
URS EEK
O
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YS A
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OLU
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STO
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AY
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US$ RS A D K
U
E
8 HO S A WE
Y
A
D
5
THE FOREX MARKET IS BIG.

REALLY BIG.
While the worldwide bond and stock markets

have a daily volume in the billions of dollars,
the forex market has a daily volume of over
US$4 trillion. This can lead to more trading
opportunities.
Bank of International Settlements Triennial FX Report, 2007
A high volume helps traders

execute trades that get them
in and out of the market
quickly. This ability to enter
or exit trades with little
hassle is called liquidity, and
it can help provide you with
more trading opportunities.
US$4 TRILLION
Forex can be traded 24-hours a day,

5.5 days a week.
At 5pm ET on Sunday evening, financial markets open in the Pacific (Australia, New Zealand,
Japan and various Asian countries). As those begin to close, markets in the Middle East and
Europe start to open. When Europe is in mid-session, financial markets across the Americas
open. This pattern continues until 5pm ET on Friday when the American financial markets close
for the weekend. The consistent closing and opening of markets around the globe provides
around-the-clock access to traders, 5.5 days a week. This is why you may hear many people refer
to forex as a global market.
WHO TRADES FOREX?

The financial community, from big banks and hedge funds to small and medium sized traders,
understands the wide range of opportunities in the forex market. And since the markets are open
longer than traditional markets, you can trade when its convenient for you.
10
CAD
Canadian
Dollar
USD
United States
Dollar
GBP
Great British
Pound
EUR
European Euro
WHAT CURRENCIES CAN I TRADE?

You can trade almost any currency
depending on which currency pairs your
dealer offers. FOREX.com has over 50 pairs
to choose from. As a new trader, however, you
will probably make your first trade with eight
of the most commonly traded currencies in
the world.
CHF
Swiss Franc
CHF
JPY
Japanese Yen
AUD
Australian Dollar
NZD
New Zealand
Dollar
WHEN YOU START TO TRADE, YOULL BEGIN TO RECOGNIZE

THE EIGHT MAJOR CURRENCIES BY THEIR CODE.
US D
COUNTRY NAME
CURRENCY NAME
CURRENCY CODES are always three

letters: the first two identify the country
name and the last letter usually identifies
the name of the currency.
The exception to this rule is the Euro (EUR),
which is used in multiple countries in the
European Union.
12
PIPS, LOTS & LEVERAGE

By now, you may feel comfortable and even a little excited about
trading forex: you know who trades it, when to trade it, and what
currencies are available. In this section, well discuss some
concepts you need to know before you trade your first currency pair.
WHY ARE CURRENCY PAIR PRICES DISPLAYED WITH
FIVE DECIMAL PLACES?
Typically in forex, currency pairs display their prices with
four decimal points. A few, such as the Japanese yen,
display two decimal places. No matter what currency
pair youre trading, the last large number behind the
decimal always represents a pip, the main unit price that
can change for the currency pair. As you trade, youll
EUR/USD PRICE EXAMPLE
1.33820
Represents one pip
track your profits (or losses) in pips.

At FOREX.com, youll see a smaller number behind the pipthis is called a fractional pip and offers even
more precise pricing. Sometimes, the fractional pip will be a 0that is, there will be no fraction of a pip
being quoted at that time. One unit of movement represents one pip. That may seem small and you may be
wondering how forex can be worthwhile if all youre speculating on is a small fraction of a currency. Since
forex is traded in large volumes, called lots, these fractions of a cent can add up very quickly. Quite simply, the
higher volume you trade the more each pip will be valued.
WHAT IS A LOT?
In forex, a lot is a standard unit of measurement. At most forex dealers, one standard lot usually equals 100,000
worth of currency. At FOREX.com you are able to trade in intervals of 1,000 units, but you are not required to
invest $1,000 to do so because forex is leveraged. Whenever you place a trade, you start with your desired
volume. Lets say 10,000 for this next example.
WHAT IS LEVERAGE?
One of the benefits of this market is the ability to trade on leverage. You dont need $10,000 in your account to
trade the EUR/USD. Currency pairs can have a leverage ratio of up to 50:1. This means you can control a large
position ($10,000) with a small amount of money ($250).
Many traders find the leverage that most forex dealers offer very appealing. Nonetheless, you should know that
trading this way can also be risky. It can produce substantial profits as easily as it can cause substantial losses.
SO HOW DO PIPS, LOTS AND LEVERAGE

WORK TOGETHER?
Lets imagine that you just bought 10,000 EUR/

USD on 50:1 as we discussed in the previous
example on leverage.
ONE LOT TRADED ON A STANDARD ACCOUNT

(Lot size 100,000 with a 50:1 leverage ratio)
You purchased at 1.30000 then closed the trade

by selling at 1.30200. This means youve earned
20 pips.
SELL
1.30200
+11 PIPS
EUR/USD
0.0001 X US$10,000 = US$1 per pip

For your 20 pip trade, you would have earned
US$20.
+7 PIPS
Not all of the pips youll earn will be worth US$1.

The value of a pip depends on the lot size of your
-1 PIP
+20 PIPS
+5 PIPS
trade, how many lots youre trading, the currency
-2 PIPS
pair and your account currency.
1.30000
BUY
While you can manually calculate this or use

online pip calculators to learn the value of a
pip before you trade, most trading applications,
CALCULATING YOUR EARNINGS
like the FOREXTrader platform, automatically

calculate pip values and convert them to the
currency youre trading.
0.0001 X 100,000 = US$10 PER PIP

(ONE LOT)
For your 20 pip trade, you would have earned

US$200.
DID YOU KNOW?

At FOREX.com, we offer a wide range of tools to help you make the most of every opportunity.
To learn more about these tools click here.
14
FOUR STEPS TO MAKING YOUR

FIRST TRADE IN FOREX
Now that you know a little more about
forex, well take a closer look at how
to make your first trade. Lets say that
you opened an account with FOREX.com.
Before you trade, you need to follow a few
steps.
SELECT A CURRENCY PAIR

The nature of forex trading is to exchange the
value of one currency for another. In other
words, you will always buy one currency while
READ ITS QUOTE

Youll notice two prices are shown
for all currency pairs. For example,
when you look up EUR/USD on
selling another at the same time. Because of
FOREXTrader PRO, youll see it listed
this, you will always trade a pair of currencies.
as:
Most new traders start out by trading the most
BASE CURRENCY
commonly offered pairs of major currencies,

but you can trade any currency pair you want,
QUOTE OR TERMS
CURRENCY
PRICE
as long as you have enough money in your

account. For this walkthrough, well look at
the EUR/USD.
SELL PRICE
BUY PRICE
Example of a EUR/USD quote in FOREXTrader PRO
ANALYZE THE MARKET

Research and analysis should be
The first rate (1.31936) is the price at
the foundation for your trading
which you can sell the currency pair.
endeavors. Without these, youre
The second rate (1.36683) is the price
operating largely on emotion. This

doesnt typically end well.
at which you can buy the currency
When you first start researching,
and second rate is called the spread.
youll find a wide wealth of forex
This is the amount that a dealer
resourceswhich may seem
charges for making the trade.
pair. The difference between the first
overwhelming at first. But as you

research a particular currency, youll
find valuable resources that stand out
from the rest. You should regularly
look at current and historical charts,
monitor the news for economic
DID YOU KNOW?
announcements, consult indicators
Spreads will vary among dealers. FOREX.com
and perform other analysis activities.
offers competitive spreads on the wide range
Well talk more about specific types
of currency pairs offered. See our live spreads
of research later on.
here.
16
12
34
FOUR STEPS TO MAKING YOUR FIRST TRADE IN FOREX

CONTINUED
PICK YOUR POSITION

If youve traded stocks, bonds or other financial products, you know that you can usually
only speculate on one direction of the marketup.
Forex trading is a little different. Because you are buying one currency while selling
another at the same time, you can speculate on up AND down movement in the market.
WITH A BUY POSITION,
You believe that the value of the base currency will rise compared to the quote
currency. If youre buying the EUR/USD, you believe the price of the euro will
strengthen against the dollar. In other words, you believe the euro is bullish
(and that the US dollar is bearish).
WITH A SELL POSITION,
You believe that the value of the base currency will fall compared to the quote
currency. If youre selling the EUR/USD, you believe the price of the euro will
weaken against the dollar. In other words, you believe the euro is bearish (and
that the US dollar is bullish).
Lets see how these would work. Imagine that you did some research and decided to
enter a trade.
ENTERING A BUY POSITION
ENTERING A SELL POSITION
The current price for the EUR/USD is

1.33820/840. You believe that the euro
is bullish, so you decide to enter a buy
position for one lot of the EUR/USD.
Because you are buying, your trade is
entered at the price of 1.33840 to cover
the spread.
Lets imagine that you believe the

euro is bearish. You decide to enter a
sell position for one lot of EUR/USD.
Because you are selling, your trade is
entered at the price of 1.33820.
EUR/USD
1.33820/840
EUR/USD
1.33820/840
1.33820
1.33840
EUR/USD
1.34160/1.34180
EUR/USD
1.34160/1.34180
1.34160
Now, lets say that later in the

day, you look at your position. The
+32 PIPS
EUR/USD is now at 1.34160/180.
Your trade has gained 32 pips. You
decide to close your position at
the current sell price of 1.34160
and take a profit.
0.0032 X 100,000 = Your profit is US$320
1.34180
You look at your position later

in the day and discover that the
EUR/USD is now at 1.34160/180.
Your trade has lost 36 pips. You
decide to close your position at
the current buy price of 1.34180,
to cover the spread, and accept
your losses.
-36 PIPS
0.0036 X 100,000 = Your loss is US$360
* The examples shown here are for educational purpose only.
18
ANTICIPATING, PLANNING AND ANALYZING:

THREE SKILLS YOU NEED TO BECOME A FOREX TRADER
As you can see from the sell example, making a

forex trade can be extremely risky. Like anything
that takes risk, you can take precautions to try
to minimise those risks and the impact. In forex,
there are three skills you can develop to help you
manage your trading risk: anticipating, planning
and analyzing.
ANTICIPATING: HOW DO I HANDLE RISK?
Its important to realize that even the best forex traders have
losing trades. While you may make some successful forex
trades, you will also make some losing trades. Fortunately,
there are a number of things you can do to anticipate risk.
1
2
3
4
PROTECT YOUR POSITION WITH STOPS, LIMITS AND OTHER ORDER TYPES.
There are a number of order types, such as trailing stops, If then, and Order Cancels
Order (OCO) designed to help traders manage risk and protect potential profits.
SET PROPER LEVELS.
You might say that setting a stop is an art; you need to make sure that your stop is set
so that your trade can handle smaller jumps and drops in price while protecting you
from losing your shirt if the market doesnt go your way. A stop thats too narrow may
lead you to reenter the market, causing you to get stopped out again. That can cause
more damage to your account balance than if you entered a stop that was too wide or
no stop at all.
CHECK YOUR EMOTIONS.
Sometimes, the factor that determines how successful your trade will be isnt the
amount of research you did, but your mindset at the time. As you trade, try to stay
objective and calm. Even if you have a losing trade, resist the urge to enter another
trade to win your earnings back.
CREATE A TRADING PLAN AND STICK TO IT.
A good trading plan is crucial to your trading success. Not only will it help you meet
some of your goals, it will define the way you trade, what youre willing to risk and
how you will protect yourself when a trade doesnt go your way.
* Placing Contingent Orders may not limit your losses to the intended amount
20
PLANNING: HOW DO I CREATE A TRADING PLAN?
Face it. Without a plan and a rules-based approach to trading,

you are simply trading by the seat of your pants. It may seem
to work for a while, but self-doubt and/or greed will ultimately
get in the way of being successful.
A trading plan serves as a steady anchor in chaotic markets, helping
you forecast when to enter and exit the market. Best of all, its fairly
easy to create. The following steps may help you get started.
WHEN CONSTRUCTING A TRADING PLAN, ASK YOURSELF:

A Will I trade only one
specific currency pair or
many?
B Will I trade on a daily
basis or hold my positions
for days or longer?
E If I trade on a daily basis,

how many consecutive
losses will I tolerate
before I stop for the day?
C How much do I want to

make?
F How will I analyze the

markets? Will I look at
news and other events?
Will I examine charts and
price movements?
D How much am I willing to

lose per trade?
G How will I use stops to

control my risk?
USING YOUR ANSWERS, WRITE OUT A

SHORT BUT DETAILED PLAN OF ACTION.
H Will I have one profit

target or multiple
targets?
I
What kind of profit can

I reasonably expect to
gain?
NOW, COMES THE HARDEST PART STICKING

TO YOUR PLAN. TRY KEEPING A DIARY OF EVERY
ONE OF YOUR TRADES. IT WILL FORCE YOU TO
FOLLOW YOUR RULES AND AVOID IMPULSIVE
TRADING AS MUCH AS POSSIBLE.
DID YOU KNOW?

Creating your own trading plan for the first time can be confusing, but dont worry: FOREX.com is
here to help. Give us a call at 877.367.3646 or chat with us online to set up a personalized trading
plan consultation.
ANALYZING: HOW WILL I ANALYZE THE

MARKETS?
You may have found making
CANDLESTICK CHARTS
your trading plan fairly easy.

But one question may have had you scratching
your head, How will I analyze the markets? One
of the most common ways is through the use of
price charts.
WHAT ARE PRICE CHARTS?
BAR & CANDLESTICK CHARTS
Price charts plot the recent prices of a currency
Bar and candlestick charts provide an easy-
pair on a graph and provide a snapshot of market
to-analyze appearance that displays detailed
movements over a particular period of time.
information about the price movements of a

currency pair.
LINE CHARTS
Line charts are one of three common chart types
that most traders use. They provide a quick way
to view the changes in price movements over a
period of time.
Each bar or candle on the chart is defined by

four price points (high, low, open and close).
The length of the bar or candle represents the
level of trading activity for a specified period.
For example, on a chart with a ten-minute time
scale, a bar or candle would represent all of the
trading activity on the market in a ten-minute
period. When the price of a currency pair rises,
the bar or candle appears one color (usually
green) and when the price of a currency pair
drops, the bar or candle appears another (usually
BAR CHARTS
red).
Most traders switch between different time
frames so that they can compare market
movements and verify trends. In FOREXTrader
PRO, for example, you can select to view charts
with time frames as small as a tick all the way
up to one year.
22
ANALYZING: WHAT IS TECHNICAL ANALYSIS?
Technical analysis is the study of repeating

patterns and movements in the market
caused by the pattern-like behavior of
traders. Traders use technical analysis
to monitor the current and historical
price movements of a currency pair, help
determine market trends and forecast
potential entry and exit points for their
trades.
Because no two traders are alike, there are hundreds of technical

analysis tools and methods to choose from. Some of the most
common are:
USD/CAD MONTHLY
RESISTANCE
SUPPORT
SUPPORT AND RESISTANCE LEVELS

These levels are price points that the
market consistently hits and then reverses
its direction. Support usually refers to
points that the price drops to but never
breaks through before rising again.
Resistance refers to points that the price
rises to but never breaks through before
dropping again.
GBP/USD 30 MINUTES
PRICE CHANNELS
BOLLINGER BANDS
INDICATORS
These display trend lines either over the
recent market movements on a chart or in
a separate area below the chart. Bollinger
Bands, Average Directional Index (ADX)
and Moving Averages are all examples
of indicators. Indicators can be either
lagging (these analyze past market price
movements) or leading (these forecast
future price movements).
PATTERNS
A chart pattern is a series of price points
that move in a particular arrangement
and, once completed, forecast market
movements. Some common patterns are
flags, channels and triangles. You can also
plot more complex patterns, such as ABCD
patterns or Fibonacci levels.
DID YOU KNOW?
Visit FOREX.com
to access
on demand
educational
webinars and video
tutorials.
FOREX.coms Global Research Team publishes streaming

commentary and research on upcoming fundamental events
and market trends to help you know whats driving the markets
and plan your strategies. Read the latest research.
24
ANALYZING: WHAT IS FUNDAMENTAL ANALYSIS?
Fundamental analysis traders track these political, social and

economic forces and then forecast whether the value of a currency
will go up or down.
Earlier in this guide, you learned that the value

of a currency pair changes in response to news,
interest rate changes, government decisions
and other events. As you watch the charts,
youll notice that events and news on the state
of a particular countrys or regions economy
can cause currency markets to shoot up or
down dramatically.
Many new traders will develop their fundamental analysis
skills by following news events and scheduled economic
announcements. But there will be times when the price
movements of a currency pair wont behave as you believe it
should based on your fundamental analysis. Thats when it
becomes important to incorporate technical analysis into your
strategy as well.
NON-FARM PAYROLLS
ARE ANNOUNCED AT
8:30am ET THE FIRST
FRIDAY OF THE MONTH
WITH THE KEY US
EMPLOYMENT DATA
EUROZONE
CONSUMER
PRICE INDEX
(CPI) RELEASED
FED RESERVE
CHAIRMAN
TESTIFIES
BEFORE
CONGRESS
DID YOU KNOW?

There are two types of economic indicators. Leading indicators are economic factors that
change BEFORE the economy starts to follow a particular trend. Theyre used to predict
changes in the economy. Lagging indicators are economic factors that change AFTER the
economy has already begun to follow a particular trend. Theyre used to confirm changes in
the economy.
26
GET STARTED WITH FOREX.com
OPEN A LIVE ACCOUNT.
Get access to exclusive market commentary, trade ideas, and technical analysis when you
open an account with FOREX.com. Our application only takes five minutes. APPLY NOW.
OPEN A PRACTICE ACCOUNT.

Test your trading strategy and see our competitive pricing with a risk-free practice account.
PRACTICE NOW
LIVE CHAT
CALL US
877.367.3646
EMAIL US
Contact Us
FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures
Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all
investors. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity
Exchange Act. *Increasing leverage increases risk.

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LETS GET TO

LETS GET TO KNOW FOREX

INTRODUCTION: THE BULLS & THE BEARS

WHAT IS FOREX TRADING?

PIPS, LOTS AND LEVERAGE

Four steps to making your first trade in forex

WHAT CURRENCIES CAN I TRADE?

How do i create a trading plan?

How will i analyze the markets?

Get started with FOREX.com

However, forex does not have these restrictions.

LETS TALK ABOUT THE

Buys a financial product to sell at

Sells a financial product to buy at

IN A TRADITIONAL BULL MARKET

IN A TRADITIONAL BEAR MARKET

IN THE FOREX MARKET

One currency is always strengthening against another (bullish), and therefore,

WHAT IS FOREX TRADING?

Also known as foreign exchange or currency

CURRENCY PAIRS APPEAR LIKE THIS:

A SAMPLE QUOTE FOR THIS PAIR COULD BE:

The first currency

The second currency

The base currency is always worth one.

TWO TRADE OPPORTUNITIES

If you believe the current value of the

Conversely, if you think the current

dollar, you might enter a trade to buy

the US dollar, you might enter a

is bearish (and the US dollar is

this scenario, you think the euro

DID YOU KNOW?

DID YOU KNOW?

EVEN IF YOURE NEW TO FOREX, YOU MAY

SELLING US DOLLARS AND

Exchanging currencies isnt just for travelers.

DID YOU KNOW?

THE FOREX MARKET IS BIG.

While the worldwide bond and stock markets

A high volume helps traders

Forex can be traded 24-hours a day,

WHO TRADES FOREX?

WHAT CURRENCIES CAN I TRADE?

WHEN YOU START TO TRADE, YOULL BEGIN TO RECOGNIZE

CURRENCY CODES are always three

PIPS, LOTS & LEVERAGE

EUR/USD PRICE EXAMPLE

track your profits (or losses) in pips.

SO HOW DO PIPS, LOTS AND LEVERAGE

Lets imagine that you just bought 10,000 EUR/

ONE LOT TRADED ON A STANDARD ACCOUNT

You purchased at 1.30000 then closed the trade

0.0001 X US$10,000 = US$1 per pip

Not all of the pips youll earn will be worth US$1.

trade, how many lots youre trading, the currency

pair and your account currency.

While you can manually calculate this or use