Hi there and welcome to our free forex trading eBook for beginners!

If
you're new to the world of forex, it can be a bit overwhelming at first. There are
so many currency pairs to choose from, different trading strategies to consider,
and a host of technical terms to learn. But don't worry - we're here to help.

In this eBook, we'll provide a comprehensive introduction to forex trading,

including the basics of how it works and the key concepts you need to know.

Whether you're just starting out in

forex trading or you're looking to
expand your knowledge and skills,
this ebook is designed to give you
the foundation you need to
succeed.

We understand that learning to trade forex can be a challenging process, but

with the right guidance and persistence, anyone can become a successful
trader.

So, let's get started on your forex trading journey! We hope this eBook serves as
a valuable resource as you learn the ropes and begin to build your skills and
knowledge.

Journey of a Trader
Why do people love trading on Forex Market?

1. Start with 50$

Prior to the early 2000s, $10,000 was the
minimum investment required to trade
the currency markets. You can now
trade with much less money than you can
on other financial exchanges, like $50. As
more participants enter the forex market,
you have the opportunity to leverage your
funds and profit from market fluctuations.

2. High liquidity
The forex market is the largest and most
liquid financial market in the world, with a
daily trading volume of over $6.6 trillion.
This means that traders can enter and exit
positions quickly and easily, without
having to worry about liquidity issues.

3. Round-the-clock trading
The forex market is open 24 hours a day, 5
days a week, which means that traders
can trade at any time that is convenient
for them. This makes it easy to fit trading
into a busy schedule.
 4. High leverage
Forex brokers often offer high leverage,
which allows traders to control large
positions with a small amount of capital.
This can be a powerful tool for traders,
but it also carries the risk of significant
losses, so it's important to use leverage
responsibly.

5. Wide range of currency pairs

The forex market offers a wide range of
currency pairs to trade, including major,
minor, and exotic pairs. This means that
traders can find a currency pair that suits
their interests and risk tolerance.

6. Potential for profit

The forex market is driven by economic
and political events, and changes in these
events can create opportunities for
traders to profit. With the right
knowledge and strategy, traders can take
advantage of these opportunities to
generate returns.

Overall, the forex market offers a combination of liquidity, flexibility, and

potential for profit that makes it an attractive option for many traders.
 Table of Contents

Introduction to the Forex Market ........................................................................................ 1

What is Forex?.................................................................................................................... 1
How does the Forex Market work? ................................................................................... 2
The structure of the Forex Market .................................................................................... 3

Key Concepts in Forex Trading ........................................................................................... 12

Types of charts ................................................................................................................ 12
When to trade ................................................................................................................. 21
Types of Traders .............................................................................................................. 25
Going long and going short ............................................................................................. 32
Lot-size and Leverage ...................................................................................................... 33
Pips, Spreads and Commissions ...................................................................................... 39

Types of Orders in Forex .................................................................................................... 47

Market Orders ................................................................................................................. 47
Pending Orders ................................................................................................................ 49
Take profit and Stop loss ................................................................................................. 55

Types of Analyses ................................................................................................................ 59

Getting started – Open your account.................................................................................. 61

Final Words ......................................................................................................................... 64

 Introduction to the Forex Market

What is Forex?
The forex market, also known as the foreign exchange market or FX market, is a
decentralized market for the trading of currencies. In the forex market, traders
buy and sell currencies in an attempt to profit from changes in the exchange
rates between different currencies.

The forex market is the largest financial market in the world, with a daily trading
volume of over $6.6 trillion. It is open 24 hours a day, 5 days a week, and is
accessible to traders from all over the world. The forex market is decentralized,
meaning that it is not controlled by any central authority or exchange. Instead,
trading occurs directly between participants through a network of banks,
brokers, and other financial institutions.

In the forex market, traders can buy and sell a wide range of currency pairs,
including major, minor, and exotic pairs. The value of a currency pair is
determined by the exchange rate between the two currencies, which can be
influenced by a variety of economic and political factors. By analysing these
factors and using various trading strategies, traders can try to profit from
changes in the exchange rates between different currencies.

1
How does the forex market work?
The forex market is a decentralized market, which means that it is not
controlled by any central authority or exchange. Instead, trading occurs directly
between participants through a network of banks, brokers, and other financial
institutions.

In the forex market, traders buy and sell currencies in an attempt to profit from
changes in the exchange rates between different currencies. The value of a
currency is determined by the supply and demand for that currency, which can
be influenced by a variety of economic and political factors.

Traders can buy and sell a wide range of currency pairs in the forex market,
including major, minor, and exotic pairs. The most commonly traded currency
pairs are the "majors," which include the US dollar, the euro, the Japanese yen,
the British pound, and the Swiss franc.

To trade forex, traders typically use a forex broker, who provides access to a
trading platform and other tools and resources. Forex brokers also offer various
types of accounts, including standard accounts, mini accounts, and micro
accounts, which allow traders to trade with different amounts of capital.

2
Overall, the forex market offers a high level of liquidity and the potential for
significant profits, but it also carries the risk of significant losses. As such, it is
important for traders to understand the market and develop a solid trading plan
to maximize their chances of success.

The structure of the Forex Market

The forex market structure may be represented as shown below

Major Players
There are a variety of participants in the foreign exchange market - from small
retail investors and beginner traders to large hedge funds and commercial
banks.
While there are many participants in the market with various goals and
motivations, we can group them into a few categories to better understand how
the Forex market works.

3
Central banks
In the currency market, central banks, which represent their country's
government, are tremendously important actors. One of the most prominent
participants in the foreign currency market is central banks.
They are the backbone of the currency market because they provide liquidity.
The price of a country's native currency in the forex market is set by the central
bank. This is the rate under which the country's currency will trade on the open
market.
Because of their infrastructure, the quantification of available capital, and
maybe most significantly, their market understanding, central banks are among
the most educated market players.

Hedge Funds
Hedge funds are the most visible members of the speculator group. While there
are various forms of hedge funds, the global macro funds and currency funds
are the most active in the Forex market.

Real Money
The term "real money" refers to investment funds that do not use leverage.
Typically, they are pension and mutual funds that handle huge amounts of
money and trade in foreign securities on the Forex market. For example, buying
a large amount of US stocks at the New York Stock Exchange will require the
purchase of the local currency in this case the US dollar.

Retail traders (us)

Individual traders use a broker to enter the market. Retail traders have access to
leverage due to the little amount of money required to create a trading account.

4
Sovereign wealth funds
Represent the State-owned investment funds that manage and invest the
country's money in a variety of markets. They are most common in countries
with huge inflows of foreign cash, such as Qatar with natural gas sales or Kuwait
with oil sales.

Brokers
The brokers exist to provide value to their consumers by assisting them in
obtaining the best rate possible. For example, they may assist their clients in
obtaining the best buying or selling price by providing estimates from multiple
dealers.
Prime brokers are companies that provide other market participants with
liquidity, leverage, and support services. A prime broker's clients are usually
other institutional participants, but an individual trader can also have a prime
broker if he fits the broker's requirements.
Retail brokers refer to the firms that allow individual forex traders to access the
Forex market.

Proprietary trading firms

It refers to the firms that hire individual traders to trade the company’s money
and give them in return a certain share of the profits they make.

Commercial companies
It covers international enterprises as well as exporters and importers. Their
primary purpose in currency trading is to hedge their currency risk or obtain the
foreign currency they require to pay their workers in other countries, among
other things.

5
 Currency Pairs
Now that you know that the Forex Market is based on currency trading let’s
see what are currency pairs. A currency pair is the quotation of two different
currencies, with the value of one currency being quoted against the other. The
first listed currency of a currency pair is called the base currency and the
second currency is called the quote currency.
Currency pairs compare the value of the base currency versus the second. The
price of a currency pair indicates how much of the quote currency is needed to
purchase one unit of the base currency.

When an order is placed for a currency pair, the base currency is bought while
the quote currency is sold.

The most liquid and traded currency pair in the world is EUR/USD as it stems
from two of the world’s largest and most reputable economies. This
combination can be seen as one of the best currency pairs for forex scalping as
the markets are mostly stable throughout the year. Therefore, it is perhaps one
of the most profitable currency pairs in terms of smaller and more frequent
earnings.

6
All forex deals include the simultaneous purchase and selling of one currency,
but the currency pair can be thought of as a single unit. You buy the base
currency and sell the quote currency when you buy a currency pair from a forex
broker.

The bid and ask prices of currency pairs are used to quote them. The bid price is
the amount at which the forex broker will purchase your base currency in
exchange for the quote or counter currency. The ask, also known as the offer, is
the price at which the broker will sell you the base currency for the quote or
counter currency.

You sell one currency to buy another when you trade currencies. On the other
hand, when trading commodities or stocks you're buying a unit of the
commodity or several shares of a particular stock with cash. The values of a
trading pair are affected by economic statistics linked to currency pairs, such as
interest rates and economic growth or gross domestic product.

7
When it comes to forex trading, there are various distinct types of currency
pairs, each divided into groups based on the amount of trading activity and
liquidity. These are known as majors, minors, and last but not least exotic pairs.

Major currency pairs

The majors are the world's most traded currency pairs, as well as the most
liquid and appealing to all types of forex traders.
The EURUSD is by far the most popular currency pair, accounting for about 30%
of all daily forex trades on the global market. The US dollar is always present in
key currency pairs.
The number of active traders buying and selling a given currency pair, as well as
the volume transacted, are used to define the level of activity in the financial
market. The more frequently something is traded the higher its liquidity.
For example, more people trade the EUR/USD than USD/CAD which means that
EUR/USD is more liquid than USD/CAD.

Down below you can see a table with all the major currency pairs

8
Minor/crosses currency pairs
Minor currencies are currencies that are not classified as major currencies but
are commonly traded against major currencies.
Crosses are currency pairs that do not include the United States dollar. A
minor currency pair is a currency pair that includes a major non-US Dollar
currency. The three largest non-US Dollar currencies are the Euro (EUR), the
British Pound (GBP), and the Japanese Yen (JPY).
Here you can see some of the minor currency pairs

Exotic currency pairs

Exotic pairs are not traded as frequently as majors or minors, implying that
they are less liquid and have less continuous market activity.
Trading unusual currency pairs has both advantages and disadvantages.
Because they are not as extensively traded, they can have higher trading fees,
but they can also have huge price variations when the market moves. We do
not recommend beginners to start trading exotic pairs because they are volatile
and can hurt your trading account.
Here you can see some of the exotic currency pairs

9
 DID YOU KNOW?
There are 180 legal currencies in the world, as recognized by the
United Nations. That’s a lot of potential currency pairs!
Unfortunately, not all of them are readable. Forex brokers tend to
offer traders up to 70 currency pairs.

Currency codes
Currencies are often abbreviated to a three-letter currency code. The first two
letters symbolize the name of the country, while the third is the country’s
currency.
Here are some currencies and their codes

Currency correlation
Currency correlation is important for traders to understand because it can have
a direct impact on forex trading results, often without the trader’s awareness.
Once you are aware of these correlations and how they change, you can use
them to control your overall portfolio's exposure.

10
Currency correlations refer to the relationship between two or more currencies
and how they move in relation to each other. In the foreign exchange market, it
is common for certain currencies to be positively correlated, meaning they tend
to move in the same direction.

For example, the Australian dollar (AUD) and the New Zealand (NZD) dollar are
often positively correlated, as the economies of both countries are closely
linked and their currencies tend to move in the same direction.

On the other hand, it is also possible for currencies to be negatively correlated,

meaning they tend to move in opposite directions. For example, the U.S. dollar
(USD) and the Japanese yen (JPY) are often negatively correlated, as the U.S.
dollar tends to strengthen when risk appetite is high and the yen tends to
strengthen when risk appetite is low.

Understanding currency correlations can be useful for traders, as it can help

them diversify their portfolios and manage risk. However, it is important to
remember that currency correlations can change over time, and it is important
to monitor them regularly to ensure they are still valid.

11
 Key Concepts in Forex Trading

Types of charts
A trading chart is designed to display information that can help you decide when
to enter or exit a position. Trading charts help traders to have an overview of
what’s going on in the markets.

From a technical point, you can analyse the trading charts to figure out if the
price of an asset is about to go up or down. By setting up efficient charts and
workspaces, you'll gain quick access to the data you need to make profitable
trading decisions.

In Forex, just like in any other market, the asset prices make a certain
movement, sometimes they go up and sometimes they go down. This is the
movement that the traders use to either buy or sell the currency pairs. If the
price is low and is showing signs that it will soon increase, traders will tend to
buy the asset, while when the price is high and is slowly decreasing, traders will
sell the asset.

To make the price movements easier to understand, traders use a visualization

method called a trading chart. All types of charts can be used in different
markets and most of them will have the same layout in terms of price and time
representations.

12
 Let’s see what the most common trading charts traders use
1. Line chart

The most basic chart and maybe the one that everyone knows is the simple line
chart. This type of chart doesn’t tell us so much about the price’s activity. It only
shows the closing price levels. Because this type of chart is showing only the
closing price levels, it filters out all the noise but sometimes this noise may be
useful for a trader.

2. Candlesticks charts

The most common type of chart used by traders is the Candlestick chart.
A candlestick chart is also called a Japanese candlestick chart because if you
didn’t guess, it is based on Japanese candlesticks. A candlestick bar shows us
four price points: Open, Close, High, and low throughout the period the trader
specifies.

13
The period that a trader can set for one candlestick bar it’s based on the
trader’s strategy. You can set various periods that a candle can show.

For example, you can set the time period for 1 hour, and every candlestick bar
on your screen will represent 1 hour of activity on the market. Every candle will
show you the open price, close price, and highest and lowest price levels on that
hour. This aspect is called timeframe and applies to other types of trading
charts.

Maybe you already saw and asked yourself why are there green and red
candlesticks. Well, these are just some colours used by traders to see where an
asset increased or decreased in price. Every trader can set what colours he likes
but the most common ones you’ll see are green and red. The green colour
shows an increase in price and the red colour will show a price decrease. In our
courses, you’ll see only green and red colours for candlesticks. This will make
you understand better the information.

14
 Candlesticks Anatomy

Every candlestick has a wide part which is called the “real body”. This real body
represents the price range between the open and close price levels. If the real
body is small, it means that the open price and close price were very close;
sometimes the same. Also, a candle with a small body tells us that there was
some indecision in the market.
The upper and lower vertical lines of a candle are called wicks or shadows and
represent the zones where the price of an asset has fluctuated relative to the
opening and closing prices.

Candlestick charts are often used by traders to determine the changes in the
price of the asset based on past patterns. It is one of the popular components of
technical analysis which makes it possible for traders to interpret price
information quickly.

Watch our video and get more insights about candlesticks charts
“How to read the candlestick charts | Get the most accurate signals”
You can watch it on Youtube HERE

15
 3. Heikin Ashi charts

A Heikin-Ashi chart shows you the strength of the trend by observing the wicks.
The Heikin-Ashi chart is constructed like a regular candlestick chart, except the
formula for calculating each bar which is different.

Heikin-Ashi has a smoother look than the candlestick chart because it is

essentially taking an average of the movement. The candles will stay red during
a downtrend and green during an uptrend. This aspect is the main reason why
traders use this type of chart, to spot a downtrend or an uptrend.

A difference between the Heikin-Ashi chart and the candlestick chart is in the
price scale. Because Heikin-Ashi is taking an average, the current price of the
candle may not match the price at which the market is actually trading. Many
trading platforms will show 2 prices on the Y axis. One is the real price where
the market is and the second one is the price that the heikin-ashi calculates.

16
In the above example, you can see the difference between the Candlestick Chart
and Heikin-Ashi Chart. If the HA chart prints a green candle, it’s not necessary
that the Candlestick chart will also print a green candle.

Green candles with no lower wick indicate a

strong uptrend. Also, these candles are called
shaved bottom.

Red candles with no upper wick indicate a

strong downtrend. Also, these candles are
called shaved head.

Candles with a small body surrounded by

upper and lower shadows indicate a trend
change.

These signals may help traders to spot trends or trading opportunities easier
than with traditional candlesticks. Keep in mind that the green candles with no
lower wick signal a strong uptrend and the red candles with no upper wick
signal a strong downtrend.

Heikin-Ashi charts have the advantage of being much "smoother" in

appearance. It makes it easier to spot the trending direction.

17
 4. Renko charts

A Renko chart is a type of trading chart that removes significantly the noise
from small fluctuations. By removing those small fluctuations, price trends may
be easier to spot with a Renko chart, and that feature makes them the
preferred price chart for some traders. This type of chart is also easier to read
because the candles on it, called bricks, are more uniform, compared to the
classic candlestick chart.

When a trader chooses this chart, he will also set the size of the brick, which in
forex is measured in pips.

Every trader is free to choose the size of every brick. As a beginner we don’t
recommend you to jump using this type of chart because you’ll need to have
experience using it even if it’s looking so clean, it’s not that easy to use it.

18
Because a trader can choose what size a brick has, the Renko charts will have no
time limit for how long a brick can form as every brick will form when the price
has moved by the set amount.
For example, if the price stays in a range zone of 5 to 7 pips and you set the size
of a brick to 10 pips there will be no brick printed as long as the price stays in
that range zone. Once the price moved 10 pips the brick will start to print.

The price action is always depicted at 45-degree angles because a new Renko
brick always forms at the top or bottom right corner of the previous Renko
brick. As a result, bricks are never placed next to each other. Therefore, after
the price advances by 10 pips and an up brick is drawn, the price must decline
by 20 pips before a down box is drawn. This applies only if the last brick is green.

19
In some cases, you’ll see that the bricks will have wicks or tails as other traders
are calling them. Well, these wicks represent the high and low prices achieved
in each bar. A trader can choose if he wants to see or not the wicks on Renko
charts from the chart settings.
To understand better how wicks work on Renko bars just take a look at this
example.
Focus on the bar pointed out.

Many traders are confused about why the high of this bar is so high. If you look
closely, you'll notice that the highest price never rose high enough to make
another green bar. However, it only moved up 17 pips before reversing and
traveling down far enough to complete the red Renko bar.
This chart type only measures the price’s movement.

Again, we recommend you use the candlestick charts because the Renko chart
requires more experience. By using a candlestick chart, traders can spot
candlestick patterns and trading patterns that can help them have a better view
of what’s going on in the markets. We’ll be talking more about candlesticks and
trading patterns in our trading academy where you’ll learn how to read,
interpret and how to use them the right way.

20
When to trade
You’ll probably think now “If the Forex market is opened 24 hours a day, 5 days
a week, why does it matter when to trade?”. Well, you need to make your own
trading hours and this depends on your location and of course when you have
free time.

The Forex Market is open 24 hours a day in different parts of the world, from 5
PM EST on Sunday until 4 PM EST on Friday. Depending on your location, the
forex market might even open on Monday and close on Friday.

The ability of the Forex Market to trade over a 24-hour period is partly due to
the different international time zones, and the fact that trades are conducted
over a network of computers rather than a physical exchange that closes at a
particular time.

For instance, when you hear that the US dollar closed at a certain rate, that was
the rate at market close in New York. That is because currency continues to be
traded around the world long after New York's close.

International currency markets are made up of banks, commercial companies,

central banks, investment management firms, hedge funds, as well as retail
forex brokers and investors around the world.

Because this market operates in multiple time zones, it can be accessed at any
time except for the weekend break.

The international currency market isn't dominated by a single market exchange

but involves a global network of exchanges and brokers around the world.

21
The forex market can be broken down into 4 major trading sessions:
- Sydney session
- Tokyo session
- London session
- New York session

The International Dateline is where, by tradition, the new calendar day starts.
Since New Zealand is a major financial centre, the forex market opens there on
Monday morning, while it is still Sunday in most of the world.

In the table above, you can see the trading hours for the 4 major trading
sessions for both winter and summer time.

As you can see there are times when 3 trading sessions are open at the same
time. The busiest times with more volume are when different trading sessions
overlap.

22
We can also see how busy the individual trading sessions are when it comes to
the average pip movement of some important currency pairs.

You can notice that the London session is the busiest one with an average of
103 pips movement.
*Understand that these are the numbers for when this eBook was written, they might
change in time and this table doesn’t represent the exact number of pips these pairs will
move every time. This table serves only as an example so you can have an idea of how
these pairs move in a certain trading session.

During these sessions, the most actively traded currencies are the ones tied to
the countries whose markets are open. For example, during the London
session, the Euro and British Pound are heavily traded, while during the New
York session, the US Dollar is heavily traded.

It's important to note that different currency pairs will have different levels of
activity during these sessions. It's also important to be aware of any economic

23
data releases or events happening during the session, as they can have a
significant impact on currency prices.

How trading sessions can help us and why it’s important to know about them
The foreign exchange market operates around the clock, so it’s impossible for a
trader to track every market and seize every opportunity. If day trading or
scalping is more suitable for you then you’ll need to know the hours for each
trading session and what pairs are the most volatile during a session. By
knowing that you’ll be able to create your own trading hours. Some traders
established their trading hours based on a specific trading session.

For day traders or scalpers, the best trading sessions would be the London and
New York session. Of course, if you can be active during these hours. If not,
you’ll have to choose another trading session to trade.

If you think that holding the trades over a longer period is more suitable for
you then these trading sessions would not be that relevant for you but in time,
you’ll find out what type of trading is more suitable for you.

DID YOU KNOW?

The U.S./London market overlap has the heaviest volume of trading and is
best for trading opportunities.

Trading the same asset everyday as a day trader will make you understand
how that asset moves and you’ll find more efficiency in your trading. In
time you’ll get experience and you’ll be able to filter better the fake signals
that the market may give. This refers to day-traders or scalpers.

24
Types of Traders
What “trader” means: A trader is a person who buys and sells financial assets in
any financial market.
The trader can do that for his own interest or on behalf of another person or
institution. The trader is different from an investor and this difference lies in the
duration for which the person holds the asset.
Traders typically hold assets for shorter periods to profit from short-term trends
while investors typically have a longer time horizon.
Traders that are trading with their own money and don’t work for a financial
institution are typically called retail traders.
A good trader isn’t just good at analysing the markets. He is also good at dealing
with his own emotions. We like to say that trading is a mental game where
every trader needs to know how their mind works.

In trading, you can hold a position as much as you want. You can hold it for 1 or
2 minutes; you can hold it for 2 hours or longer. That holding period is
determined by your personality. If you don’t like to spend hours in front of
charts or you feel overwhelmed by the amount of data, you’ll likely hold
positions over a longer period.

The main types of traders are the following:

1. Day Traders
These traders hold positions for a very short period, usually just a few hours or
even minutes, and then close their positions before the end of the trading day
(or in Forex when the specific trading session ends).
Day traders aim to take advantage of short-term price movements and may use
technical analysis to identify trade opportunities.

25
Timeframes for day traders:
Usually, day traders don’t watch the lower timeframes as 1 minute. They watch
timeframes as 15 minutes, 30 minutes, or 1 hour. (it’s not a general rule to only
watch these timeframes but for sure they won’t trade the monthly charts)

You might be a day trader if you like taking a few trades in a day and you have
the time to analyse the markets and monitor your trades throughout the day.
If you have a day job or you like longer or shorter-term trading then day trading
might not be for you.

Day traders often use technical analysis to identify short-term price patterns
and make trades based on those patterns. They may also use news and
economic data releases to make decisions about when to buy and sell
currencies.

Day traders usually use a high degree of leverage, which means they can
control a large amount of money with a small amount of capital. This can
magnify potential gains, but it also increases the risk of losses.

A profitable strategy is useless without discipline. Many day traders end up

losing money because they fail to make trades that meet their criteria.

26
 2. Scalpers
What is scalping?
Scalping is a short-term trading strategy that involves buying and selling
currencies in rapid succession, to capture small profits on each trade. Its name
is a result of how it accomplishes its objectives.

Scalpers typically hold their positions for a few seconds to a few minutes, and
they may make dozens or even hundreds of trades in a single day. As day
traders, scalpers will choose to trade during a specific trading session.

Advantages of scalping
Scalping can be a highly profitable trading strategy, especially in a volatile
market. Because scalpers are looking to capture small profits on each trade,
they can make a significant amount of money over time by compounding their
gains. Additionally, scalping requires less capital than other trading strategies,
which means that traders can start with a smaller account.

Another advantage of scalping is that it allows traders to avoid the risks of

holding positions overnight, which can be affected by news and events that
happen outside of trading hours.

27
Disadvantages of scalping
Scalping can be a high-stress, high-pressure trading strategy, and it requires a
high degree of discipline and focus. Additionally, the small profits that scalpers
aim to capture can be quickly wiped out by a single losing trade, and scalpers
must be able to handle the emotional ups and downs of the market.

Timeframes for scalpers:

Usually, scalpers will trade the 1-minute and 5-minute timeframes because of
their trading style. Of course, they can watch the higher timeframes to spot the
main trends and main zones.

Tips for scalpers:

1. Use technical analysis. Scalpers often use technical analysis to identify short-
term price patterns and make trades based on those patterns.
2. Use a low-spread broker. Scalpers typically make a large number of trades,
and the spread (the difference between the bid and asking price) can eat into
their profits if it is too high.
3. Set stop-loss orders. Scalpers must have strict risk management in place to
limit their potential losses.
4. Be aware of news and events. Be aware of major economic data releases and
events that can affect the market.
5. Practice with a demo account. Scalping is a high-risk, high-reward strategy,
and it's essential to gain experience through practice trades using a demo
account before committing real money.

In conclusion, scalping can be a highly profitable trading strategy for

experienced traders, but it requires a significant amount of time, effort, and
discipline. It's also important to have a solid risk management plan in place.
Scalping can be a great way to make consistent profits, but it's not suitable for
every trader, and it's important to thoroughly educate yourself and practice
with a demo account before trading with real money.

28
 3. Swing Traders
What is swing trading?
Swing trading is a medium-term trading strategy that involves buying and
selling currencies to capture medium-term price movements. Swing traders
typically hold their positions for several days to a few weeks, and they might
make a few trades in a single week.

Rather than scalpers or day traders who profit from those small moves, swing
traders try to catch the bigger moves.

Advantages of swing trading

Swing trading allows traders to capture larger price movements rather than
scalping, which can lead to greater profits. Additionally, because swing traders
hold their positions for a longer period, they can take advantage of the market’s
flow.

Another advantage of swing trading is that it allows traders to avoid the stress
and pressure of day trading, and gives them more time to research and analyse
the market.

29
Disadvantages of swing trading
Swing trading can be a less predictable strategy than day trading, and it
requires a greater degree of patience and discipline. Additionally, swing traders
are exposed to overnight risks, which can be affected by news and events that
happen outside of trading hours.

Timeframes for swing traders:

Because swing traders want to catch the bigger moves, they will use higher
timeframes such as 4H (4 hours) 8H, Daily, and Weekly to spot the main trends.
Again, this is not a general rule, these timeframes are mostly used by this type
of traders.

Tips for swing traders:

1. Use technical and fundamental analysis. Swing traders often use a
combination of technical and fundamental analysis to identify medium-term
price patterns and make trades based on those patterns.
2. Use a low-commission broker. Because the trades a swing trader takes have
larger targets, the spread on your account won’t count so much. It won’t have a
big impact on your overall profit. When you are a scalper or a day trader you are
looking to get from your broker an account with small spreads, but when you
are a swing trader you are looking to get an account that has small commissions
per traded volume.
3. Set stop-loss orders. Swing traders must have strict risk management in place
to limit their potential losses.
4. Be aware of news and events. Keep an eye on major economic data releases
and events that can affect the market and don’t get anxious by the small
fluctuations on lower timeframes, keep in mind that you’re looking to catch the
bigger moves.
5. Use position sizing. As with all traders, swing traders should use position
sizing to limit the amount of money they have at risk on any one trade.

30
You might be a swing trader if you like holding the trades for several days, you
are willing to take fewer trades, you don’t mind having bigger stop losses and
you are a patient trader.

If you don’t like holding trades for several days and you are more impatient and
like to see immediately if you were wrong or not then being a swing trader
might not be for you.

Whether you like doing short-term trading or long-term trading, risk

management plays an important role. If you don’t have good risk management,
you’ll probably end up losing your money. It doesn’t matter what type of trader
you are or what tools or indicators you use, risk management is more
important.
As a brief example of how important having good risk management is, just take
a look at this table.

As you can see, if you lose 50% of your capital you need to make 100% of your
new trading balance just to recover that loss. If you lose more you need to
make more to recover the loss. Beginners tend to use huge amounts and hope
to become rich. If you use 50% on one trade and that trade hits the take profit
level it doesn’t make you a good trader. It makes you a lucky trader.
So, pay attention to how much you risk because you don’t want to lose all your
money.

31
Going long and going short
When a trader goes "long" on a currency pair, they are buying the base
currency with the expectation that it will appreciate against the counter
currency. For example, if a trader buys the EUR/USD pair, they are going long on
the Euro and short on the US dollar.

On the other hand, when a trader goes "short" on a currency pair, they are
selling the base currency with the expectation that it will depreciate against the
counter currency. For example, if a trader sells the EUR/USD pair, they are going
short on the Euro and long on the US dollar.

In simple terms, going long on a currency means buying it with the

expectation that its value will increase while going short on a currency means
selling it with the expectation that its value will decrease.

It's important to note that when you are long or short on a currency, you are
also exposed to the risk associated with the currency's value change. Going
long on a currency means you will benefit from its appreciation, but you will
lose money if it depreciates. Going short on a currency means you will benefit
from its depreciation, but you will lose money if it appreciates.

32
Lot size and Leverage
Lot size
Lot size refers to the amount of currency units that a trader is buying or selling
in a single trade. The most common lot size in the forex market is the standard
lot, which is equal to 100,000 units of currency. However, there are also mini-
lots, which are equal to 10,000 units, and micro-lots, which are equal to 1,000
units.

For example, if a trader buys a standard lot of the EUR/USD currency pair, they
are buying 100,000 Euros and selling the equivalent amount in US dollars. If a
trader buys a mini lot of the same currency pair, they are buying 10,000 Euros
and selling the equivalent amount in US dollars.

How the lot size affects the pip value (you’ll learn in the next lesson what a pip is)
We’ll calculate it using a lot size of 0.1 (10,000 units)
EUR/JPY at the exchange rate of 136.350: (0.01 / 136.350) * 10,000 = $0.73 per
pip
USD/JPY at the exchange rate of 125.562: (0.01 / 125.562) * 10,000 = $0.79 per
pip

33
EUR/USD at the exchange rate of 1.13283: (0.0001 / 1.13283) * 10,000 = $0.88
per pip
GBP/USD at the exchange rate of 1.21423: (0.0001 / 1.21423) *10,000 = $0.82
per pip

Lot size can have a significant impact on a trader's risk management and overall
profitability. A smaller lot size allows traders to take on less risk by trading with
smaller amounts of capital, which can be beneficial for those who are just
starting or who have limited funds available. However, trading with a smaller
lot size also means that the potential profits will be smaller.

On the other hand, a larger lot size allows traders to take on more risk and
potentially make larger profits, but it also means that the potential losses will
be greater.

It's important for traders to choose a lot size that is appropriate for their risk
appetite and trading capital. Traders should also factor in the cost of trading,
such as the spread and commission, and make sure that is feasible to trade with
the lot size they have chosen.

In addition to the standard lot, mini lot, and micro-lot, some brokers may offer
nano lots, which are even smaller and equal to 100 units. This is useful for
traders who want to test a strategy or trade with a very small amount of capital.

Advantages of Lot Size:

1. Risk Management: By choosing a smaller lot size, traders can reduce the
amount of risk they take on in a single trade. This can be beneficial for
those who are just starting or who have limited funds available.

34
 2. Flexibility: Lot size can be adjusted to suit a trader's risk appetite and
trading capital. This allows traders to adapt their trading strategy as their
capital grows or their risk tolerance changes.

3. Micro Trading: Some brokers may offer nano lots, which are even smaller
and equal to 100 units. This is useful for traders who want to test a
strategy or trade with a very small amount of capital.

Disadvantages of Lot Size:

1. Profit Potential: Trading with a smaller lot size also means that the
potential profits will be smaller. This can be a disadvantage for traders
who are looking to make large profits quickly.

2. Risk of Margin Calls: A larger lot size means that a trader is taking on more
risk, which can lead to larger losses if the trade doesn't go as planned. This
can result in a margin call, where the trader must either deposit more
funds or have their position closed out by the broker to meet margin
requirements.

3. Spreads and Commissions: Traders should also factor in the cost of

trading, such as the spread and commission, and make sure that it's
feasible to trade with the lot size they have chosen.

In conclusion, a lot size is a useful tool for managing risk in forex, but it also has
its disadvantages. Traders should weigh the pros and cons and choose a lot size
that is appropriate for their risk appetite and trading capital.

35
Leverage
In the world of forex, leverage is a key concept that allows traders to increase
their potential returns on investment. Leverage is essentially the use of
borrowed funds to trade a larger position than what would be possible with just
the trader's capital. This can magnify both profits and losses, and as such, it is
important for traders to fully understand how leverage works before using it.

Leverage is the ability to control a large amount of money in the forex market
using only a small amount of capital. This is done by borrowing funds from a
broker, which allows the trader to trade a larger position than what they would
be able to with just their capital.

For example, if a trader has $10,000 in their trading account and they want to
trade a $100,000 position, they could use the leverage of 10:1. This would allow
them to trade the $100,000 position using only $10,000 of their capital, with the
remaining $90,000 borrowed from the broker.

The amount of leverage that a trader can use will vary depending on the
broker and the trader's account type. Some brokers may offer leverage ratios
as high as 1000:1, while others may offer lower ratios such as 50:1. It's
important to note that while high leverage ratios can potentially increase
returns, they also increase the risk of larger losses.

Leverage is typically calculated as a ratio, such as 100:1 or 500:1. This ratio

represents the amount of borrowed funds compared to the trader's capital. For

36
example, a leverage ratio of 100:1 means that for every $1 of the trader's
capital, they are able to trade $100 in the market.

Risks Associated with Leverage

While leverage can potentially increase returns, it also increases the risk of
larger losses. This is because a small change in the price of the currency pair can
result in a large loss when using leverage. For example, if a trader is using the
leverage of 100:1 and the price of the currency pair they are trading moves
against them by just 1%, their account balance would be completely wiped out.

It's important for traders to understand the risks associated with leverage and
to use it responsibly. This means setting stop-losses, managing risk, and being
aware of the potential for larger losses.

Proper Use of Leverage

To properly use leverage in the forex market, traders should first understand
their risk tolerance and financial goals. This will help them determine the
appropriate amount of leverage to use in their trading strategy.

Traders should also set realistic expectations for their returns, and not rely too
heavily on leverage to achieve their financial goals. It's also important to never
risk more than you can afford to lose and to always have a plan in place for
managing risk.

Another key aspect of proper use of leverage is understanding the margin

requirements for the currency pairs you are trading. Margin is the amount of
capital required to open and maintain a position, and it is typically expressed as
a percentage of the total trade size. For example, a margin requirement of 1%
means that 1% of the total trade size must be held in the trading account as
collateral. Based on the margin required by your broker, you can calculate the
maximum leverage you can use. If your broker requires a 2% margin, you have a
37
leverage of 50:1. Here’s a table with the margin requirement and the maximum
leverage that most brokers offer.

Traders should also be aware of the potential for margin calls, which occur
when the value of the collateral falls below a certain level. In this case, the
trader may be required to deposit additional funds or close some of their open
positions to bring the margin back up to the required level. In other cases, you’ll
be notified about the margin call and the broker will automatically close your
positions so your trading balance won’t become negative.

In summary, leverage can be a powerful tool for traders in the forex market, but
it also comes with significant risks. To properly use leverage, traders should
understand their risk tolerance, set realistic expectations for returns, and use a
proper risk management plan. By doing so, they can potentially increase their
returns while also minimizing their risk of large losses.

Besides “margin” and “margin call” there are also 2 terms you need to know:
Used margin = the amount of capital that is currently being used to maintain
open positions in the market.

Usable margin = refers to the amount of capital that is available in a trading

account to open new positions or maintain existing ones.

38
Pips, Spreads, and Commissions
Pips
A pip, or "Percentage In Point," is the smallest unit of price change in the forex
market. It is usually equal to 0.0001 of a currency's value. For example, if the
EUR/USD exchange rate moves from 1.2000 to 1.2001, the price has moved up
by 1 pip. This applies to all major and minor currency pairs, excluding the pairs
that have the Japanese Yen (JPY) as the counter currency. For these pairs, the
pip will be equal to 0.01 of the currency’s value.

Pips are used to measure the change in the value of a currency pair and to
calculate profits and losses. For example, if a trader buys the EUR/USD pair at
1.2050 and sells it at 1.2100, the trader made a profit of 50 pips.

39
If you’re still confused about how to calculate the pips on different pairs, we
created this table with various examples from different currency pairs. Hope it
helps you understand this aspect better.

40
Spreads

As you already saw in this picture, there’s a term called “spread”. Well, the
spread is the difference between the bid and the ask price of a currency pair.
The bid price is the highest price that a buyer is willing to pay for a currency,
while the asking price is the lowest price that a seller is willing to accept. The
spread is usually measured in pips.

As in the above example, the bid price is 1.05685 and the asking price is
1.05698, in this case, the spread will be 1.3 pips.

How does Spread affect traders?

The spread is the cost of trading in the forex market, and it is usually factored
into the price of a trade. For example, if a trader buys the EUR/USD pair at
1.05698, they are paying the asking price, which is 1.3 pips higher than the bid
price.

The spread can have a significant impact on a trader's profits and losses. A low
spread allows traders to enter and exit trades at a lower cost, which can
increase their profits. On the other hand, a high spread can eat into a trader's
profits, especially for those who trade frequently.

It's important for traders to choose a low-spread broker and to factor the
spread into their trading strategy and risk management plan.

41
Commissions
When trading in the foreign exchange market, traders are often required to pay
a commission to their broker for each trade they make. The commission is a fee
that is charged by the broker for executing the trade on the trader's behalf.
There are many types of commissions that the trader pays.

The first one that you already know is the spread and this is because you never
open your trade at the current market price.

If the asking price is at 1 pip above the current price, then this will represent
one of the commissions a trader pays.

Trading Fees
When trading in the Forex market traders are often required to pay a trading
fee to their broker for each trade they make. The trading fee is charged by the
broker for executing the trade on the trader's behalf.

How are Trading fees Calculated?

Trading fees in the forex market are typically calculated as a percentage of the
total value of the trade. For example, a broker may charge a fee of 0.1% on a
trade that is worth $10,000. This would result in a fee of $10 ($10,000 x 0.1%).

Most brokers have a fixed trading fee for every lot you trade.

42
Swap Fees
A swap fee, also known as a rollover fee or overnight fee, is a charge that is
applied to a trader's account when they hold a position overnight. The swap fee
is calculated based on the difference in interest rates between the two
currencies in the currency pair that is being traded.

This swap applies when you hold your position open overnight and is calculated
based on your position (if it’s long or short).
Sometimes this swap will be in your favour. Instead of paying money because
you keep your position overnight, you’ll be paid because you kept the trade
overnight.

For example, if a trader buys the EUR/USD currency pair and holds the position
overnight, they will be charged a swap fee if the interest rate on the Euro is
lower than the interest rate on the US Dollar. Conversely, if the interest rate on
the Euro is higher than the interest rate on the US Dollar, the trader will receive
a swap fee.

How to calculate Swap:

43
Example:
If you buy 10,000 units of a currency pair with a swap (long) rate of -2.65 and
hold it for 1 night. Pip value is 1$ and your account is denominated in USD, then
the swap fee will be the following one:

Swap fee = (1*-2.65*1)/10 = $-0.26

To know the swap rate for a long or short position in the forex market, you can
check with your broker or look at a trading platform that provides information
on swap rates. Many trading platforms, such as MetaTrader, will have a
"Market Watch" window where you can view the current bid and ask prices for
a currency pair, as well as the corresponding swap rate for long and short
positions.

You can also use online calculators available on the internet, which allow you to
input the currency pair, trade size, and direction (long or short) to know the
swap rate.

It's important to note that swap rates can change frequently, so it's a good idea
to check the current rates before making a trade. Additionally, different brokers
may have different swap rates, so it's important to compare rates across
different brokers before choosing one.

In addition, it's important for traders to be aware of the interest rate

differentials between the currencies they trade, as this will impact the swap fee
they will be charged. Some traders may choose to trade currency pairs with low-
interest rate differentials to minimize the impact of swap fees on their profits.
This is useful for swing traders because they hold their positions for more than
a day.

44
 Important
There is one hour each day when spreads are extremely wide and
opening or closing a trade might cost you much more than usual. It
is the hour after the daily candle closes. To avoid this, try not
trading during this hour if you are a day-trader or scalper.

Spreads can become enormous during times of high volatility or market

uncertainty. These periods can be caused by a variety of factors such as
economic data releases, political events, or natural disasters. When there is
high uncertainty in the market, traders are more likely to take larger positions
and trade more frequently, which can lead to increased demand for a currency
pair and widen the spread.

In conclusion, commissions have an impact on a trader's profits and losses, so

it's important for traders to choose a broker with low commission rates and to
factor the commission into their trading strategy and risk management plan.
Traders should also be aware of additional fees that a broker may charge and
factor these into their overall profitability.

Before ending this chapter, there are 3 terms that we didn’t discuss: Balance,
Equity, and P&L (profit and loss). These terms refer to the performance of a
trading account.

Balance = refers to the total amount of capital that is available in a trading

account, including any deposits or withdrawals that have been made.

P&L (profit and loss) = refers to the overall performance of a trading account,
including any realized profits or losses from closed positions.

45
Unrealized P&L = refers to the performance of a trading account, including only
the open positions. For example, if you don’t have any open trades the
Unrealized P&L will be 0.

Equity = refers to the value of the trading account, taking into account any open
positions and their corresponding unrealized profits or losses. It is calculated by
adding the balance to/ subtracting the Unrealized P&L from the account.
For example: (balance 10,000 and no fees)
If you have one open trade that’s up 1,000 then your balance will be 10,000,
your equity will be 11,000 and your Unrealized P&L will be +1,000.

But if you have one open trade that’s down 1,000, then your account stats will
look something like this.

And if you close that running trade for -1,000 then the stats will look like this.

46
 Types of Orders in Forex
Market Orders
A market order is an instruction to buy or sell a currency pair at the best
available price in the market. This type of order is executed immediately at the
current market price.
Remember bid and ask prices? Well, now you’ll understand better how they
work.

There are only 2 types of market orders: Buy Order and Sell Order
Buy order
If you think the currency pair, you’re looking at will go higher and want to trade
that move, you’ll place a buy order, which will be executed immediately. If you
remember the bid and ask lesson, you know that the order will not be opened
at the current market price. It will be opened at the current ask price, as shown
below.

47
As you may see in the examples above, if the price is at, let’s say $10 and you
want to open a long position (buy that currency pair), your order will be opened
at the asking price, which is higher than the current price. We know, not the
happiest situation but the brokers should also “eat” something.

Sell order
The opposite of a buy order, if you want to open a short position at the current
market price, you’ll use a sell order.

48
Pending Orders
Pending orders are the type of orders that allow traders to enter a position at a
specific price level in the future. This type of order is not executed immediately,
but instead, it is executed at a specific price level that has been pre-determined
by the trader.

There are 6 types of pending orders:

1. Buy-Limit Order
2. Sell-Limit Order
3. Buy-Stop Order
4. Sell-Stop Order
5. Buy Stop-Limit Order (these 2 orders are only available on MT5 platform, the
6. Sell Stop-Limit Order other 4 are available on both MT4 and MT5 platforms)

Buy-Limit Order
This type of order is used to buy a currency pair at a specified price level. When
a trader uses this type of order, he anticipates that the price will first go lower
and at a certain level, it will go up. When this order is used, the trade will be
opened when the asking price is equal to/less than the specified price level.
Practically you place a buy order at a lower price than the actual one. (the order
will be filled when the price reaches that level, specified by the trader)

49
Sell-Limit Order
This order is used to open a short position at a higher price. For example, you
anticipate that the price will first go higher than the actual price and at a
certain level it will go lower.

Practically you place a sell order at a higher price than the actual one. (the order
will be filled when the price reaches that level, specified by the trader)

50
Buy-Stop Order
This type of order is used by traders when they want to buy (open a long
position) from a higher price level. For example, you anticipate that the price of
a currency pair will go higher but you don’t have the time to watch the chart all
day. Supposing the current price is at 10 and you think it will go at 14 or higher
but you need an extra confirmation or you don’t have the time to watch the
chart, you’ll place a buy-stop order at 12. When the price reaches 12 then your
buy order will be executed. As with all orders, it will be executed depending on
the bid/ask prices. In this case, when the asking price will be equal to/ higher
than 12.

51
Sell-Stop Order
This order is used by traders when they want to sell from a lower price level. In
this case, the order will be executed when the bid price will be equal to/ lower
than the specified price. Same as buy-stop but vice-versa, the price has to drop
until it meets your order criteria.

Hope you understood these types of orders because the next ones represent a
sort of combination between some of these 4.

52
Buy Stop-Limit Order
This type of order is used by traders when they want to buy from a higher price
level. Now you’ll say “Same as the Buy-stop”. Well.. kind of. The buy stop-limit is
a combination of the Buy-stop and Buy-limit orders, being a stop order for
placing the buy limit.
When you use this type of order, it will act first as a stop order. When the price
hits the buy-stop level, it will turn into a buy-limit order and your trade will be
executed when the price will hit the buy-limit level. Same story with the asking
price.

53
Sell Stop-Limit Order
The sell stop-limit is a combination of the Sell-stop and Sell-limit orders, being a
stop order for placing the sell limit. This type of order allows you to get in as the
price is moving down. First, it will act as a sell stop and once the price reaches
that level, the order will act as a sell limit. Same story with the bid price.

These 2 orders are the least used types of pending orders.

Pending orders can be a useful tool for traders who have a clear understanding
of the market conditions and are able to anticipate future price movements, but
it also comes with certain risks and considerations. It's important for beginners
to have a clear plan in place to manage those risks and to have a good
understanding of market conditions.

54
Take profit and Stop loss
Take profit and stop loss orders are critical tools that traders use to manage
risk and lock in profits. Take-profit orders are used to automatically exit a trade
when the market moves in favour of the trader's position, while stop loss orders
are used to automatically exit a trade when the market moves against the
trader's position.

When a take profit or stop loss order is placed, the trader is instructing their
broker to automatically exit a trade at a specific price level. A take profit order is
placed above the current market price for a long position or below the current
market price for a short position, while a stop loss order is placed below the
current market price for a long position or above the current market price for a
short position. Once the specified price level is reached, the order is executed
and the trade is closed.

Let’s see how they work.

55
56
When a take profit or stop loss order is placed, the trader is instructing their
broker to automatically exit a trade at a specific price level. A take profit order is
placed above the current market price for a long position or below the current
market price for a short position, while a stop loss order is placed below the
current market price for a long position or above the current market price for a
short position. Once the specified price level is reached, the order is executed
and the trade is closed.

Take profit levels can also help beginners to remain disciplined and stick to their
trading plan. By setting specific levels for take profit, traders can avoid
emotional reactions to market movements and instead rely on their pre-
determined plan.

Stop loss levels are also important for beginners. They can help minimize the
risk of large losses by automatically exiting a trade when a specific price level is
reached. This can help protect the trader's capital and prevent them from losing
more than they can afford.

It's important for beginners to understand that take profit and stop loss levels
are not guaranteed to be executed at the specified price level, and that market
gaps or slippage can occur. It's also important to note that brokers might have
different rules for the distance of stop loss and take profit level from the current
market price. It's important to check with the broker before setting any levels.

57
Because you are free to choose if you want to set take profit and stop loss levels
you can also change them even if the trade is running. That’s not the best
option for a beginner because most of the time when the price is going against
the trader’s position, most of the beginners move the stop loss thinking the
price will reverse and will reach their take profit level. If you want to do that,
just stop. Let the price hit that SL (stop loss) and assume you were wrong. You
can’t be right 100% of the time. If you would move the stop loss whenever the
price is about to reach it, you’ll expose your account to a bigger risk and that’s
not the point of trading.

Trust us, you don’t want to expose your account to bigger risks so remember
this, never move your stop loss. Let the price reach it, assume you were wrong
and, move on. We’ll discuss more aspects on the risk management lesson.

58
 Types of Analyses

In the Forex market, there are two main types of analyses that traders use to
make informed decisions about their trading strategy: technical analysis and
fundamental analysis. Understanding the differences between these two types
of analyses, and how to use them effectively, is crucial for any trader looking to
make informed decisions about their trading strategy. In this chapter, we will
explore the basics of technical analysis and fundamental analysis in the forex
market, including how they are executed, the advantages and disadvantages of
using them, and how to use them effectively in your trading strategy.

Technical Analysis

Technical analysis is the study of historical price and volume data to identify
patterns and make predictions about future market movements. This type of
analysis is based on the belief that market movements are not random and that
historical data can be used to predict future price movements. Technical
analysts use charts, indicators, and other tools to analyse price and volume data
and make predictions about future market movements.

Advantages of Technical Analysis

One of the main advantages of technical analysis is that it can be used to
identify trends and patterns in the market. This can help traders to anticipate
future price movements and make informed decisions about their trading
strategy.

Another advantage of technical analysis is that it can be used to identify key

levels of support and resistance, which can help traders to determine entry and
exit points for their trades.

59
Disadvantages of Technical Analysis
One of the main disadvantages of technical analysis is that it is based on past
performance and cannot predict future events. Additionally, technical analysis
assumes that the market is efficient, which may not always be the case.

Another disadvantage of technical analysis is that it is subjective, as different

traders may interpret the same data differently.

Fundamental Analysis

Fundamental analysis is the study of economic and financial factors that can
affect the value of a currency. This type of analysis is based on the belief that
the underlying value of a currency is determined by economic and financial
factors such as interest rates, GDP, and political stability. Fundamental analysts
use data such as economic indicators and news releases to make predictions
about future market movements.

We’ll explain more and will show you more aspects about these 2 analyses in
our Advanced eBook.

60
 Getting Started – Open your account

When it comes to selecting a forex broker, the options can be overwhelming.

With so many different brokers to choose from, it can be difficult to know which
one is the best fit for your trading needs. That's why we're excited to introduce
you to our partners, HeroFx, a top-of-the-line forex broker that offers a wide
range of benefits for traders of all levels.

Raw Spreads:
One of the main advantages of HeroFx is the raw spreads that they offer on all
of their currency pairs. Unlike other brokers that may mark up their spreads,
HeroFx offers the true market spread, which can result in significant savings for
traders. This means that you'll have more money to put towards your trades,
and you'll be able to take advantage of market movements more effectively.

Low Commissions or Zero Commissions:

Another advantage of HeroFx is that they offer low commissions or even 0
commissions on all of their trades. This means that you'll be able to keep more
of your profits and have more money to put towards your next trade. This is
especially beneficial for traders who make frequent trades or who trade with
large volumes.

Crypto Withdrawals and Deposits:

HeroFx is also one of the few brokers that offer the ability to withdraw and
deposit funds using cryptocurrencies. This is a huge advantage for traders who
want to use digital currencies for their trading needs, as it provides a fast and
secure way to move funds in and out of their trading account. With HeroFx,
you can easily fund your account using Bitcoin, Ethereum and USDT and you can
also withdraw your profits in the same way.

61
Latest Technology:
HeroFx is also known for its use of the latest technology in its trading platform.
With HeroFx's platform, you'll be able to take advantage of the latest features
and tools that are designed to help you make more informed trading decisions.

Fast Execution on Trades:

In addition to the advanced technology, HeroFx is also known for its fast
execution on trades. This is crucial for traders who need to make quick decisions
and act on market movements in real-time. With HeroFx's fast execution, you'll
be able to take advantage of market opportunities as they arise, which can
increase your chances of success.

Leverage up to 1:500:
HeroFx offers leverage up to 1:500, which allows traders to increase their
trading capital and potentially make larger profits. However, it is important to
note that leverage can also increase potential losses, so it is important to use it
responsibly and be aware of the risks. With HeroFx's high leverage, experienced
traders can potentially increase their trading profits, but it is important to use
caution and not over-leverage your account.

50% deposit bonus:

HeroFx offers you a bonus at your first deposit. This means that when you
make your first deposit, you'll receive an additional 50% on top of your deposit,
giving you more trading capital to take advantage of market opportunities. With
this bonus, you'll have more money to put towards your trades and potentially
increase your profits. To get that 50% bonus you’ll have to choose this option
when you create your account because if you don’t want that bonus you can
also open a normal account. (as on any other broker, terms and conditions apply for this option,
make sure you read them carefully)

62
In our opinion, HeroFx is the perfect broker for traders of all levels. It offers a
wide range of advantages including raw spreads, low or no commissions, crypto
withdrawals and deposits, advanced technology, fast execution on trades, and
leverage up to 1:500. All of these benefits combined make HeroFx a top choice
for traders who are looking for a reliable and trustworthy broker. With HeroFx,
you can rest assured that you are in good hands and that your trading needs will
be met.

Click and open your demo/live account

63
 Final Words

Congratulations on reaching the end of this eBook on the basics of the forex
market! By now, you should have a solid understanding of how the forex market
works.

As you've learned, the forex market is a complex and dynamic arena, and it
requires a deep understanding of market conditions and risk management
strategies to be successful. However, with the knowledge and skills you've
acquired through this eBook, you are on your way to becoming a successful
trader.

But this eBook is just the beginning. To truly master the forex market, you'll
need to continue your education and gain a deeper understanding of the
market and its workings. That's why we're excited to offer you the opportunity
to take your forex trading knowledge to the next level with our advanced
eBook.

Our advanced eBook will dive deeper into the complexities of the forex
market, providing you with in-depth information on trading strategies,
technical analysis, and risk management techniques. You'll learn how to
analyse charts, read price action, and develop a trading plan that is tailored to
your individual goals and risk tolerance.

Don't miss this opportunity to take your forex trading knowledge to the next
level. If you have questions you can contact us on Instagram at:

@all.about.trading

64
 Disclaimer

Please keep in mind that trading on forex market, futures and options carries a
high level of risk, and may not be suitable for all traders/investors. Don’t invest
an amount of money that you can’t afford to lose. This eBook’s purpose is only
for education and to guide you as a beginners in this domain. Keep in mind that
we can’t be held responsible for any of your losses on the market. We don’t
encourage people to put their money in a certain market. All the information
shared in the course is only for educational purpose. Execute the information
only with your strong personal conviction! No potential financial gain is
guaranteed!

65