Forex trading online

FOREX TRADING ONLINE
PRESENTED BY:
Jean Claude Rwubahuka, MBA-IB, MSc. Fin. & Banking
Tel.: +250(0)788427626
Email: rwubahukajc@gmail.com
Website: www.gestoriaconsult.com |
Africa, Europe, Asia, America, Oceania
Kigali, Rwanda |
www.tiny.cc/250binaryoptions
www.tiny.cc/250forex
Free forex trading info on…
www.de250.com/digital-forex-trading

Prior to 1971, speculation was not permitted in the
currency markets due to an agreement called the
Bretton Woods Agreement.
This agreement was set up in 1945 with with the
purpose of stabilizing international currencies and
preventing money fleeing across nations.
This agreement fixed all national currencies against
the dollar and set the dollar at a rate of $35 per ounce
of gold.
HISTORY OF THE CAPITAL MARKET
Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626 W: www.gestoriaconsult.com

In 1971, the Bretton Woods agreement was finally
abandoned and the US dollar was no longer convertible to
gold.
By 1973, currencies of the major industrialized nations
were floating more freely, helped by the forces of supply
and demand. Prices were set, with volumes, speed and
price volatility, all increasing during the 1970’s.
Accelerated with the arrival of computers during the
1980’s, the movement of money across borders became a
continuum, trading through the Asian, European and
American time zones. The big banks created dealing
rooms where hundreds of millions of CURRENCIES were
exchanged within minutes.

London has developed to become the world’s leading
international financial center and is the world’s largest
Forex market.
In the 1980s, it became the key center in the
Eurodollar market when British banks began lending
dollars as an alternative to pounds in order to maintain
their leading position in global finance.
London’s convenient geographical location (operating
during Asian and American markets) is also
instrumental in preserving its dominance in the Euro
market.

Forex or Foreign Exchange
Forex means foreign exchange. Sometimes it is also called FX.
A simple way to understand the Forex market is to think of it as
changing money when you travel abroad.
When you change money, you sell one currency and buy
another at the current exchange rate. This is because the value
of your own currency is not equal to the value of the currency
you wish to buy.
In effect, you have traded currency and this is very similar to
Forex trading.
Currencies constantly need to be exchanged in order to conduct
business. This makes the Forex market one of the largest, most
liquid financial market in the world.
The daily volume of trades on the London Stock Exchange is
USD 7 billion, whereas the daily volume on the Forex market
was $5.3 trillion in April 2013 according to the BIS triennial
report.

Forex location
Unlike other financial markets the Forex market has no central
location or exchange.
The market is so large that it is unlikely to be affected by one
person or one company – it takes much bigger processes to
influence the direction of the market.
It works almost the same way as the internet does (World Wide
Web).
That means that every order from any trader is executed in a
global network of demand and supply, called the ECN network
(Electronic Network of Banks).
That fact adds reliability and transparency into Forex trading
transactions.
Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: +250788427626W: www.gestoriaconsult.com

Forex trading
Forex trading is the simultaneous buying of one currency and
the selling of another.
When you trade Forex, you can trade with a broker through a
trading platform.
Currencies are always traded in pairs, for example GBP/USD
(trading the British pound against the US dollar).
The first currency in the pair is known as the “base” currency,
the second one is the “quote” currency.
They are also often referred to as “buy” and “sell” or "offer" and
"bid".
Daily currency fluctuations are usually very small. Most currency
pairs move less than one cent per day, representing a less than
1% change in the value of the currency.
This makes foreign exchange one of the least risky financial
markets in the world.

Currency Pairs
The "majors" and the "commodity pairs" are the most
liquid and most widely traded currency pairs in the
Forex market.
These pairs and their combinations make up the vast
majority of all trading in the Forex market.
Because these pairs typically have the largest volume
of buyers and sellers, they also typically will have the
tightest spreads.

The 4 Major Currency Pairs
1. EUR/USD: The euro and the U.S. dollar
2. USD/JPY: The U.S. dollar and the Japanese yen
3. GBP/USD: The British pound sterling and the U.S.
dollar
4. USD/CHF: The U.S. dollar and the Swiss franc

The 3 Commodity Pairs
The three Commodity Pairs are:
1. AUD/USD: The Australian Dollar and US Dollar
2. USD/CAD: The US Dollar and Canadian Dollar
3. NZD/USD: The New Zealand Dollar and US Dollar

Forex Market Participants
The most important Forex market participants are:
1.  Central and Commercial Banks
2.  International Trade Companies
3.  Forex Brokers (ECN, STP and Dealing-Desk
brokers);
4.  Large, Medium and Small Institutional Investors
(i.e. Investment Companies, etc.);
5.  Common Retail Traders;
6.  World Travellers

Forex Brokers
Currency traders use brokers to access the 24-hour
currency market.
A Forex broker is an intermediary between you and the
"interbank" (networks of banks that trade with each
other).
Typically a Forex broker will offer you a price from the
banks that they have relationships with.
Many Forex brokers use multiple banks for pricing and
they offer you the best one available.
Besides, brokers provide traders with access to a
trading platform that allows them to buy and sell foreign
currencies.

Why Trade Forex?
1.  Forex is the largest financial market in the world
The Forex market is considered to be the largest financial
market in the world.
Because the currency markets are large and liquid, they are
believed to be the most efficient financial markets.
It is important to realize that the foreign exchange market is not
a single exchange, but is constructed of a global network of
computers that connects participants from all parts of the world.
It has huge trading volume representing the largest asset class
in the world leading to high liquidity.

Why Trade Forex?
2. Markets are open 24 hours a day, 5 days a week
The Forex market has continuous operation: 24 hours
a day except weekends.
The Forex market never sleeps.
This is awesome for those who want to trade on a part-
time basis, because you can choose when you want to
trade: morning, noon, night, during breakfast, or in your
sleep.

Why Trade Forex?
3. Highest liquidity
The foreign exchange market is the most liquid
financial market in the world.
Traders include large banks, central banks, institutional
investors, currency speculators, corporations,
governments, other financial institutions, and retail
investors.
The average daily turnover in the global foreign
exchange and related markets is continuously growing.
According to the 2010 Triennial Central Bank Survey
coordinated by the Bank for International Settlements
average daily turnover was $3.98 trillion in April 2010.

Why Trade Forex?
4. High Leverage
In Forex trading a small margin deposit can control a
much larger total contract value.
For example, a Forex broker may offer leverage of
1:100, which means that a $50 dollar margin deposit
would enable a trader to buy or sell $5000 worth of
currencies.
Similarly, with $500 dollars, one could trade with
$50000 dollars and so on. Remember this high degree
of leverage can lead to large losses as well as gains.

Why Trade Forex?
5. No additional commission and low trading cost
Trading Forex has much lower transaction costs than
other investment products.
Most Forex accounts trade without a commission and
there are no expensive exchange fees or data licenses.
Traders just pay the spread (the difference between the
buying price and the selling price) to enter the market.
This spread can be wide and is a significant cost of
trading which is always displayed on your trading
screen.

Why Trade Forex?
6. Ease of access
The Forex market is the largest and most liquid
market in the world, it has become one of the most
popular markets to trade globally due to its ease of
access and availability.
Online Forex brokers give traders of all levels easy
access to forex trading platforms, meaning that the
world of online trading has never been more
accessible.
Jean Claude Rwubahuka, MBA, MSc. Fin. & Banking; Tel.: 0788427626W: www.gestoriaconsult.com

How to Succeed in Forex?
To succeed in trading you need:
1.  To choose a reliable broker with an impeccable
reputation;
2.  To strive to fill all the gaps in your knowledge of
Forex;
3.  To use a professional and convenient Forex trading
terminal;
4.  Not to rush to immediately earn millions
5.  To be prepared for losses, think of them as a part
of Forex trading;
6.  Not to let your passion take over your sense.

TRADING PLATFORMS
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www.tiny.cc/250forex
Free forex trading info on…
www.de250.com/digital-forex-trading

THANK YOU !!!
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Forex trading online

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