what is Forex trading ?

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what is Forex trading ?

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How does forex trading work? Forex trading works by simultaneously buying one currency while selling another. If the currency you have bought increases in value against the currency you have sold, you can close your position for a profit. – PowerPoint PPT presentation

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Title: what is Forex trading ?


1
Forex Trading
  • theforexsecret.com

2
What Is Foreign Exchange?
  • Forex, also known as foreign exchange, FX or
    currency trading, is a decentralized global
    market where all the worlds currencies trade.
  • It is trading of currencies from different
    countries against each other.
  • The FX market is the place where different
    currencies are traded Capture Audience Attention
  • More than 90 of all currencies are traded
    against the US Dollar (USD)

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3
Benefits Of Forex Trading
  • Time and place flexibility- As we know the market
    is open 24 hours each day, so we don't have to
    worry about the managing our own time.
  • Highly liquid market- The market is so huge, that
    is extremely liquid.
  • Low transaction costs- The transaction costs are
    determined by the bid spread, is usually less
    than 0.1, and in case of large dealers it may be
    even lower.
  • Margin Based Trading- Once you have funded a
    margin account with you broker, you can engage in
    any trading activity you wish is so long as you
    have sufficient margin remaining in your account.

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Different Ways To Trade Forex
  • Spot Forex
  • Spot trading most commonly refers to the spot
    forex market, on which currencies are traded
    electronically around the world.
    Most spot currency trades settle two business
    days after the execution of the trade, with the
    exception of the U.S. dollar vs. the Canadian
    dollar, which settles the next business day.
  • Futures
  • Futures are contracts to buy or sell a certain
    asset at a specified price on some future date.
    it is a binding contract between the two parties,
    which allows them to trade a certain amount of
    currency pair at predetermined price in future
    time.

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5
Different Ways To Trade Forex
  • Options
  • An "option" is a financial instrument that gives
    the buyer the right or the option, but not the
    obligation, to buy or sell an asset at a
    specified price on the option's expiration date.
    if a trader "sold" an option, then he o she would
    be obliged to buy or sell an asset at a specific
    price at the expiration date.
  • . Exchange- traded Funds
  • Exchange- traded funds or ETFs are an investment
    fund which are traded on the stock exchanges like
    shares . They are invested in a single currency
    or basket of currencies . the investor who are
    not more inclined towards futures or forex
    markets uses currency ETF's.

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THE FOREX SECRET
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