This is a presentation I made for giving ideas on forex market

1. Forex Trading

2. Rahat
131-116-051
BBA 29th
Metropolitan University, Sylhet

3. ACKNOWLEDGEMENT
Writing this report appeared to be a great experience to us. It added a lot to our
knowledge. This report is one of our memorable experiences in student life. Though
words are inadequate in offering thanks to our teacher Mr. Touhidul Islam
Chowdhury
Executive summary
This is a semester project regarding ‘FOREX TRADING’. It starts with the short
introduction about ‘FOREX’, and ‘FOREX’ market. It also contains the basic tools and
techniques and other staffs which are needed to learn about ‘FOREX’. It also gives a
briefing about how to open a ‘FOREX’ business profile and about the trading process.

5.  The FOREX market, established in 1971, was created when floating
exchange rates began to materialize
 The largest foreign exchange activity retains the spot exchange between
five major currencies: US Dollar, British Pound, Japanese Yen, Euro dollar
and the Swiss Franc.
 It is also the largest financial market in the world. In comparison, the US
stock market may trade $10 billion in one day, whereas the FOREX market
will trade up to $2 trillion in one single day

6. Currency included
Currency Full name
AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
JPY Japanese Yen
NZD Newzeland Dollar
USD US Dollar
BGN Bulgarian Lev
RON Romanian New Lev
TRY Turkish Lira
EUR Euro
CZK Czech Koruna
DKK Danish Krone
HKD Hong Kong Dollar
HUF Hungarian Forint
ILS Israeli Shekel
MXN Mexican Peso
NOK Norwegian Krone
PLN Polish Zloty
RUB Russian Ruble
SEK Swedish Krone
SGD Singapore Dollar
ZAR South African Rand
GBP British Pound

7. Currency pair
In FOREX market all trades are done by Currency pair. Because, foreign currencies
are traded all over the world. So it is difficult to consider the exact price of a
currency.
For example, EUR/USD is a currency pair. Currently, 1EUR/USD=1.1266. That means,
1 EURO can give us 1.1126 Dollar.
Pips
“Price interest point” known as pips. A pip measures the amount of change in the
exchange rates for a currency pair.
For example, EUR/USD=1.1263(previously), currently it is 1.1266, amount of
change= 1.1266-1.1263=0.0003, So, EUR/USD changed by 3 pips

8. Time frame
Time frame indicates the fluctuation of price of a certain time period such as 5
minute, 15minute, 1 hour, 1 week, 1 month. The most useable time frames are:- M1,
M5, M15, M30, H1, H4, D1, W1, MN
Lot/volume
In FOREX market we can gain from each pips movement. Suppose, price goes from
1.1710 to 1.1720 then the loss or profit will be calculated counting 10 pips. By
lot/volume we will indicate the amount of loss or profit by the favorable or
unfavorable movement of per pips.
Rest of them are:- Ask, Bid, Spread, Broker, Short, Long, Closing rate,
opening rate, leverage

9. Historical data of currencies
Historical exchange rates of some major currency pair, such as: EUR/USD, EUR/GBP

11. Present data of currencies

12. Tools and Techniques of FOREX trade
FOREX platforms
These are application software that enables us to sell or buy currency in real
time. Example: FOREXTrader, MetaTrader, Tradeable
FOREX hours
The FOREX market is the only 24-hour market, opening Sunday 5 PM EST, and running
continuously until Friday 5 PM EST. The FOREX day starts with the opening of Sydney’s
(Australia) FOREX market at 5:00 PM EST (10:00 PM GMT/ 22:00), and ends with the
closing of New York’s market, a day after, at 5:00PM EST (10:00 PM GMT / 22:00),
immediately reopening in Sydney restart trading.

13. Exotic pairs
When a minor currency combines with major currency as fulfillment of currency pair,
then the pair is called Exotic Pairs. For example, USD/HKD, USD/MXN
FOREX chart
There are 3 types of chart-
Line Chart

14. OHLC Bar Chart
Candlestick Chart

15. Trend line
A line that is drawn over pivot highs or under pivot lows to show the prevailing
direction of price. Trend lines are a visual representation of support and resistance in
any time frame.

16. Indicator
One kind of tools that indicates whether the price will increase or decrease. It helps
vastly, because most of the time it remains unknown that price is increasing or
decreasing. Example: Bollinger Bands, Parabolic Sar, ADS
Analysis
• Fundamental analysis: This analysis is done by considering economical, social and
political situation
• Technical analysis: This analysis is done by considering the movement of the price.
Also there are many technical tools to do so.
• Sentimental analysis: This analysis is done by considering own opinion of individual
traders.

17. OPENING A BUSINESS PROFILE
There are usually two types of account-
(1)Risk free demo account (for practicing)
(2)Real account
(1)Risk free demo account (for practicing)
It is very easy to open a demo account, just by filling the following
information: Name, Address, Email, Phone number, Account currency
type, Password for trading account, Date of birth, Citizenship,
Employment status
In FXCM by opening a demo account we can get $50,000 virtual
dollar to practice trade………account can be open in Onada FXTrade,
AvaTrade, Plus500, Finexo, FOREXTrader PRO, Meta Trader

18. (2)Real account
Here all the things are same as opening a demo account. Only the exception is
n real account we have to invest money i.e. there exist a payment procedure.
The process of opening a real account is given below:

19. Then in 3rd step we have fill in some personal information. Then we have to
complete the payment procedure. The payment procedure can be done
through PayPal, Netteler, Master cards, Web money, Western Union,
For exapmle if we invest 10,000 BDT in a broker firm , we will get
$120[$100+$20(bonus)] in our total equity balance
After the payment a confirmation will be given by the broker about the
account information(balance with bonus). Then individual can start their own
trading by login into their preferred application

20. The trade
Now the process of a trade will be given:
(1)After login to Meta trader application we can see the following screen:

21. (2)Suppose, we are going to trade EUR/USD. From market watch window we will click
to EUR/USD. Then the following screen will appear:

22. (3)If we want to buy EUR/USD we have to click the option “buy”. Then the following
screen will appear:

23. (4)If we want to set ‘take profit’ and ‘stop loss’ option then we have to double click
Those option. The following screen will appear:

24. The impact of ‘news’ on exchange rate of currency
If the forecasted value is greater than the actual then the economy of a
country will be acknowledged as in good position and if the forecasted value
is less than the actual then the economy of a country will be acknowledged as
in a bad position.
The price fluctuates more and more when news are released. Normally it is
assumed that if a country is doing well in economy then their currency rate
will raise and if not doing well their currency rate will fall.

25. The impact of news are typified in 4 categories:
(1)High impact(Red colored)
(2)Medium impact(Orange colored)
(3)Low impact(Yellow colored)
(4)Non-economic impact(White colored)

26. Is FOREX profitable?
FOREX is exciting and with the right guidance and a bit of luck anyone can
earn 500%, 600% and even 2000% returns. But FOREX is not for everyone. If
anyone prefer the penny slots to the high roller tables, then the high stakes
world of FOREX is not for them.
So, FOREX is highly profitable, but it is not for all.

27. References
(1)www.fxcm.com
(2)www.forex-brokers-online.com
(3)www.bdforexschool.com
(4)www.tinyforex.blogspot.com
(5)www.forex.com
(6)www.babypips.com
(7)www.forex-bd.com
(8)www.fxstreet.com
(9)www.fxbook.com
(10)www.bdpips.com

28. Any
?