To succeed as a Forex trader

 you must take into consideration a wide variety
of factors such as:
• spread ("pips");
• commissions and fees;
• ease of access to the trading platform;
• minimum amounts needed for trading;
• additional amounts needed (if any);
• control over activity and positions;
• the platform software requirements;
• ease of deposits and withdrawals;
• personal service and support provided by the platform;
• the platform’s business partners;
• the platform’s management, offices and outreach;
• the products offered onboard the platform; and many others.

Training with Easy-Forex

Easy-Forexi”‘ offers one of the most effective forms of training through hands-
on experience. For as little as USD 25 at risk per trade, you can start trading
while learning in real-time. Easy-Forexw strongly recommends starting with
very small volumes, and depositing an amount to cover a series of trades.
Learn the basics of the foreign exchange market, trading terminology,
advanced technical analysis, and how to develop successful trading strategies.
Discover how the Forex market offers more opportunities for quick financial
gains than almost any other market.
To learn more about the trading advantages of Easy-Forexm, join Easy-Forexw
(registration is quick and free, no obligation)
The many available resources and tools to train yourself
There are many free tools and resources available in the market, particularly
online. Among these, you will find:
Charts
There are many kinds of charts . Start with
simple charts. Try to identify trends and major changes, and try to relate
them to technical patterns as well as to macro events (news, either financial)

Understanding the nuances of the Forex market

Understanding the nuances of the Forex market requires experience and
training, but is critical to success. In fact, ongoing learning is as important to
the veteran trader as it is to the beginner. The foreign currency market is
massive, and the key to success is knowledge. Through training, observation
and practice, you can learn how to identify and understand where the Forex
market is going, and what controls that direction.
To invest in the right currencies at the right time in a large, nonstop and
global trading arena, there is much to learn. Forex markets move quickly and
can take new directions from moment to moment. Forex training helps you
assess when to enter a currency based on the direction it is taking, and how
to forecast its direction for the near future.

Trading via brokers and dealing rooms (by phone)

Performing Forex trading via Dealing Room dealers (over the phone) requires
knowledge about the way dealing rooms work, and the terminologies used in
the course of trading.
At start, the client should specify whether he/she is interested in obtaining a
QUOTE (in order to make a deal) or just an INDICATION. In the case of an
indication, the price given does not bind the dealer, but rather provides
information about market conditions.
When asking for QUOTE, the trader must specify the currency pair and the
deal amount (volume). For example: "Need a quote for EUR/USD in
EUR100,000".
It is wise to withhold from the dealer the intended direction of the deal,
specifying the pair only. Accordingly, the dealer then provides a quote
comprising two prices, buy and sell ("both sides quote"). The quote binds the
dealer for the very second it is given. If the trader does not immediately ask
for execution, then the price is no longer in force. The dealer would then tell
the customer "risk", or "change", meaning — the price quoted is no longer in
force. In such case, the trader should ask for a new price.
On the other hand, in order to make a deal, the trader must proclaim "buy"
or "sell", together with the currency (or the price).
An example:
• The trader asks for a quote for EUR/USD.
• The dealer says "1.5010/15".
• If the trader wants to buy EUR, he/she says "buy" (or "buy EURO", or
• If the trader wants to sell EUR, he/she says “sell" (or "sell EURO", or
The moment the trader says "buy" (or "sell") he/she is bound to the deal,
regardless of the market situation.
>
Banks are closed at nights, weekends and holidays. Trade, deposit and
withdraw at Easy-Forexw, 24x7

Forex on the internet: basic steps

In general, the individual Forex trader is required to fulfill two steps prior to
trading:
• Register at the trading platform
• Deposit funds to facilitate trading

Requirements vary with each trading platform, but these steps bear further


Registering


Registration is done online by the individual trader. There are various forms
used in the industry. Some are quite simple, where others are longer and
more time-consuming. In part, this can be attributed to governmental or
other authorities’ requirements, though some Forex platforms require more
information than is actually needed. Some even require a face-to—face
meeting, or to obtain hard copies of required documents such as a passport,
or driver’s license.
The key requirements for registration are the trader’s full name, telephone,
e—mail address, residence, and sometimes also the trader’s yearly income or
capital (equity) and an ID number (passport / driver’s license / SSN / etc.).
Typically, the Forex platform is not required to run a thorough check, but rely
on the registrant to be truthful. Nevertheless, each Forex platform conducts
certain routines, in order to check and verify the authenticity of the details
provided.
Registrants are required to declare that funds used for trading are not in
question, and are not the result of any criminal act or money laundering
activity. This is mandatory as part of a global anti—money laundering effort.
!
It is advised that the reader becomes familiar with Anti-Money Laundering
regulations, and the procedures associated with the prevention of this
criminal activity.

Depositing funds


New registrants must deposit funds to facilitate trading. However, the
majority of the Forex platforms today require that, in addition to funds used
for actual trading, an additional amount be deposited. Often called
"maintenance margin" or "activity collateral", its purpose is for the platform
to have an additional guarantee. Some of the platforms that require an
additional deposit do pay interest on the collateral, which is "frozen" under
the trader’s name.

Trading online on Forex platforms

The internet revolution caused a major change in the way Forex trading is
conducted throughout the world.
Until the advent of the internet-Forex age at the end of the 1990’s, Forex
trading was conducted via phone orders (or fax, or in—person), posted to
brokers or banks. Most of the trading could be executed only during business
hours. The same was true for most activities related to Forex, such as making
the deposits necessary for trading, not to mention profit taking. The internet
has radically altered the Forex market, enabling around the clock trading and
conveniences such as the use of credit cards for fund deposits.

Overview of trading Forex online

How a Forex system operates in real time
Online foreign exchange trading occurs in real time. Exchange rates are
constantly changing, in intervals of seconds. Quotes are accurate for the time
they are displayed only. At any moment, a different rate may be quoted.
When a trader locks in a rate and executes a transaction, that transaction is
immediately processed; the trade has been executed.
Up-to-date exchange rates
As rates change so rapidly, any Forex software must display the most up-to-
date rates. To accomplish this, the Forex software is continuously
communicating with a remote server that provides the most current exchange
rates. The rates quoted, unlike traditional bank exchange rates, are actual
tradable rates. A trader may choose to "l0ck in" to a rate (called the "freeze
rate") only as long as it is displayed.

What is the main source of earnings for Forex market makers?

The major source of earnings for market makers is the spread between the bid
and the ask prices. Easy-Forexw Trading Platform, for instance, maintains
neutrality regarding the direction of any or all deals made by its traders; it
earns its income from the spread.

Do forex market makers and clients have a conflict of interest?

Market makers are not intermediaries, portfolio managers, or advisors, who
represent customers (while earning commission). Instead, they buy and sell
currencies to the customer, in this case the trader. By definition, the market
maker always provides a two-sided quote (the sell and the buy price), and
thus is indifferent in regards to the intention of the trader. Banks do that, as
do merchants in the markets, who both buy from, and sell to, their
customers. The relationship between the trader (the customer) and the
market maker (the bank; the trading platform; Easy-Forexw; etc.) is simply
based on the fundamental market forces of supply and demand.

Do market makers go against a c|ient's position? in forex

By definition, a market maker is the counterpart to all its clients' positions,
and always offers a two-sided quote (two rates: BUY and SELL). Therefore,
there is nothing personal between the market maker and the customer.
Generally, market makers regard all of the positions of their clients as a
whole. They offset between clients' opposite positions, and hedge their net
exposure according to their risk management policies and the guidelines of
regulatory authorities.

Who are the market makers in the Forex industry?

Banks, for example, or trading platforms (such as Easy-Forexw), who buy and
sell financial instruments "make the market". That is contrary to
intermediaries, which represent clients, basing their income on commission.

What is a market maker? in forex

A market maker is the counterpart to the client. The Market Maker does not
operate as an intermediary or trustee. A Market Maker performs the hedging
of its clients' positions according to its policy, which includes offsetting
various clients' positions, and hedging via liquidity providers (banks) and its
equity capital, at its discretion.

Who are the participants in today’s Forex market?

In general, there are two main groups in the Forex marketplace:
Hedgers account for less than 5% of the market, but are the key reason
futures and other such financial instruments exist. The group using these
hedging tools is primarily businesses and other organizations participating in
international trade. Their goal is to diminish or neutralize the impact of
currency fluctuations.
Speculators account for more than 95% of the market.
This group includes private individuals and corporations, public entities,
banks, etc. They participate in the Forex market in order to create profit,
taking advantage of the fluctuations of interest rates and exchange rates.
The activity of this group is responsible for the high liquidity of the Forex
market. They conduct their trading by using leveraged investing,

Types of exchange rate systems in forex

An exchange can operate under one of four main types of exchange rate
systems:
Fully fixed exchange rates
In a fixed exchange rate system, the government (or the central bank acting
on its behalf) intervenes in the currency market in order to keep the exchange
rate close to a fixed target. It is committed to a single fixed exchange rate
and does not allow major fluctuations from this central rate.
Semi—fixed exchange rates
Currency can move within a permitted range, but the exchange rate is the
dominant target of economic policy-making. Interest rates are set to meet
the target exchange rate.
Free floating
The value of the currency is determined solely by supply and demand in the
foreign exchange market. Consequently, trade flows and capital flows are the
main factors affecting the exchange rate.
The definition of a floating exchange rate system is a monetary system in
which exchange rates are allowed to move due to market forces without
intervention by national governments. The Bank of England, for example,
does not actively intervene in the currency markets to achieve a desired
exchange rate level.
With floating exchange rates, changes in market supply and demand cause a
currency to change in value. Pure free floating exchange rates are rare - most
governments at one time or another seek to "manage" the value of their
currency through changes in interest rates and other means of controls.

Managed floating exchange rates
Most governments engage in managed floating systems, if not part of a fixed
exchange rate system.
The advantages of fixed exchange rates
Fixed rates provide greater certainty for exporters and importers and, under
normal circumstances, there is less speculative activity - though this depends
on whether dealers in foreign exchange markets regard a given fixed
exchange rate as appropriate and credible.
The advantages of floating exchange rates
Fluctuations in the exchange rate can provide an automatic adjustment for
countries with a large balance of payments deficit. A second key advantage of
floating exchange rates is that it allows the government/monetary authority
flexibility in determining interest rates as they do not need to be used to
influence the exchange rate.
!
The EUR-USD has dropped? So what!
(you can profit in any direction it takes, provided you chose the winning direction".)

When was the last time the EUR-JPY pair was over 150.00?

The basic theories underlying the US dollar to euro exchange rate
Law of One Price: In competitive markets, free of transportation cost barriers
to trade, identical products sold in different countries must sell at the same
price when the prices are stated in terms of the same currency.
Interest rate effects: If capital is allowed to flow freely, exchange rates
become stable at a point where equality of interest is established.
The dual forces of supply and demand
These two reciprocal forces determine euro vs. US dollar exchange rates.
Various factors affect these two forces, which in turn affect the exchange
rates:
The business environment: Positive indications (in terms of government
policy, competitive advantages, market size, etc.) increase the demand for
the currency, as more and more enterprises want to invest in its place of
origin.
Stock market: The major stock indices also have a correlation with the
currency rates, providing a daily read of the mood of the business
environment.
Political factors: All exchange rates are susceptible to political instability and
anticipation about new governments

The fall of the US dollar

The steady and orderly decline of the US dollar from early 2002 to early 2007
against the euro, sterling, Australian dollar, Canadian dollar and a few other
currencies (i.e. its trade-weighted average, which is what counts for purposes
of trade adjustment), remains significant.
In the wake of the sub-prime mortgage crises in the US, dollar losses
escalated and continued to feel the backlash. The Fed responded with several
rounds of rate hikes while weighing the balance of domestic growth and
inflation fears.

Euro-Dollar currency exchange

The euro to US dollar exchange rate is the price at which the world demand
for US dollars equals the world supply of euros. Regardless of geographical
origin, a rise in the world demand for euros leads to an appreciation of the
euro.
Factors affecting the Euro to US dollar exchange rate
Four factors are identified as fundamental determinants of the real euro to US
dollar exchange rate:
· The international real interest rate differential between the Federal
Reserve and European Central Bank
· Relative prices in the traded and non-traded goods sectors
· The real oil price
• The relative fiscal position of the US and Euro zone
The nominal bilateral US dollar to euro exchange is the exchange rate that
attracts the most attention.

The explosion of the euro market forex

The rapid development of the Eurodollar market, which can be defined as US
dollars deposited in banks outside the US, was a major mechanism for
speeding up Forex trading. Similarly, Euro markets are those where currencies
are deposited outside their country of origin. The Eurodollar market came
into being in the 1950s as a result of the Soviet Union depositing US dollars
earned from oil revenue outside the US, in fear of having these assets frozen
by US regulators. This gave rise to a vast offshore pool of dollars outside the
control of US authorities. The US government reacted by imposing laws to
restrict dollar lending to foreigners. Euro markets were particularly attractive
because they had far fewer regulations and offered higher yields. From the
late 1980s onwards, US companies began to borrow offshore, finding Euro
markets an advantageous place for holding excess liquidity, providing short-
term loans and financing imports and exports.
London was and remains the principal offshore 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.

A brief history of the Forex market

The following is an overview into the historical evolution of the foreign
exchange market and the roots of the international currency trading, from the
days of the gold exchange, through the Bretton-Woods Agreement, to its
current manifestation.
The Gold exchange period and the Bretton-Woods Agreement
The Bretton-Woods Agreement, established in 1944, fixed national currencies
against the US dollar, and set the dollar at a rate of USD 35 per ounce of gold.
In 1967, a Chicago bank refused to make a loan in pound sterling to a college
professor by the name of Milton Friedman, because he had intended to use
the funds to short the British currency. The bank`s refusal to grant the loan
was due to the Bretton-Woods Agreement.
Bretton-Woods was aimed at establishing international monetary stability by
preventing money from taking flight across countries, thus curbing speculation
in foreign currencies. Between 1876 and World War I, the gold exchange
standard had ruled over the international economic system.

What is the global Forex market?

Today, the Forex market is a nonstop cash market where currencies of nations
are traded, typically via brokers. Foreign currencies are continually and
simultaneously bought and sold across local and global markets. The value of
traders' investments increases or decreases based on currency movements.
Foreign exchange market conditions can change at any time in response to
real-time events.
The main attractions of short-term currency trading to private investors are:
· 24-hour trading, 5 days a week with nonstop access (24/7) to global
Forex dealers.
· An enormous liquid market, making it easy to trade most currencies.
· Volatile markets offering profit opportunities.
· Standard instruments for controlling risk exposure.
· The ability to profit in rising as well as falling markets.
• Leveraged trading with low margin requirements.
· Many options for zero commission trading.

Risks of forex trading

Although Forex trading can lead to very profitable results, there are
substantial risks involved: exchange rate risks, interest rate risks, credit risks
and event risks.
Approximately 80% of all currency transactions last a period of seven days or
less, with more than 40% lasting fewer than two days.

A spot transaction

 spot transaction is a straightforward exchange of one currency for another.
The spot rate is the current market price, which is also called the "benchmark
price". Spot transactions do not require immediate settlement, or payment
"on the spot". The settlement date, or "value date" is the second business
day after the "deal date" (or "trade date") on which the transaction is agreed
by the trader and market maker. The two-day period provides time to confirm
the agreement and to arrange the clearing and necessary debiting and
crediting of bank accounts in various international locations.

Leverage

Leveraged financing is a common practice in Forex trading, and allows traders
to use credit, such as a trade purchased on margin, to maximize returns.
Collateral for the loan/leverage in the margined account is provided by the
initial deposit. This can create the opportunity to control USD 100,000 for as
little as USD 1,000.
There are five ways private investors can trade in Forex, directly or
indirectly:
· The spot market
· Forwards and futures
· Options
• Contracts for difference
· Spread betting
Please note that this book focuses on the most common way of trading in the
Forex market, "Day-Trading" (related to "Spot"). Please refer to the glossary
for explanations of each of the five ways investors can trade in Forex.

what r Prices, Quotes and Indications??

The price of a currency (in terms of the counter currency), is called "Quote".
There are two kinds of quotes in the Forex market:
Direct Quote: the price for 1 US dollar in terms of the other currency, e.g. -
Japanese Yen, Canadian dollar, etc.
Indirect Quote: the price of 1 unit of a currency in terms of US dollars, e.g. —
British pound, euro.
The market maker provides the investor with a guote. The guote is the price
the market maker will honor when the deal is executed. This is unlike an
"indication" by the market maker, which informs the trader about the market
price level, but is not the final rate for a deal.
Cross rates — any quote which is not against the US dollar is called "cross". For
example, GBP/JPY is a cross rate, since it is calculated via the US dollar.

what r Spreads ??

It is the difference between BUY and SELL, or BID and ASK. In other words,
this is the difference between the market maker's "selling" price (to its
clients) and the price the market maker "buys" it from its clients.
If an investor buys a currency and immediately sells it (and thus there is no
change in the rate of exchange), the investor will lose money. The reason for
this is "the spread". At any given moment, the amount that will be received
in the counter currency when selling a unit of base currency will be lower
than the amount of counter currency which is required to purchase a unit of
base currency. For instance, the EUR/USD bid/ask currency rates at your
bank may be 1.4975/1.5025, representing a spread of 500 pips (percentage in
points; one pip = 0.0001). Such a rate is much higher than the bid/ask
currency rates that online Forex investors commonly encounter, such as
1.5015/1.5020, with a spread of 5 pips. In general, smaller spreads are better
for Forex investors since they require a smaller movement in exchange rates
in order to profit from a trade.

what is exchange rate?

Because currencies are traded in pairs and exchanged one against the other
when traded, the rate at which they are exchanged is called the exchange
rate. The majority of currencies are traded against the US dollar (USD), which
is traded more than any other currency. The four currencies traded most
frequently after the US dollar are the euro (EUR), the Japanese yen (JPY), the
British pound sterling (GBP) and the Swiss franc (CHF). These five currencies
make up the majority of the market and are called the major currencies or
"the Majors". Some sources also include the Australian dollar (AUD) within the
group of major currencies.
The first currency in the exchange pair is referred to as the base currency.
The second currency is the counter currency or guote currency. The counter
or quote currency is thus the numerator in the ratio, and the base currency is
the denominator.
The exchange rate tells a buyer how much of the counter or quote currency
must be paid to obtain one unit of the base currency. The exchange rate also
tells a seller how much is received in the counter or quote currency

What is a Forex deal?

Components of a Forex deal
A Forex deal is a contract agreed upon between the trader and the market-
maker (i.e. the Trading Platform). The contract is comprised of the following
components:
• The currency pairs (which currency to buy; which currency to sell)
• The principal amount (or "face", or "nominal": the amount of currency
involved in the deal)
• The rate (the agreed exchange rate between the two currencies).
Time frame is also a factor in some deals, but this chapter focuses on Day-
Trading (similar to "Spot" or "Current Time" trading), in which deals have a
lifespan of no more than a single full day. Thus, time frame does not play
into the equation. Note, however, that deals can be renewed ("rolled-over")
to the next day for a limited period of time.
The Forex deal, in this context, is therefore an obligation to buy and sell a
specified amount of a particular pair of currencies at a pre-determined
exchange rate.
Forex trading is always done in currency pairs. For example, imagine that the
exchange rate of EUR/USD (euros to US dollars) on a certain day is 1.5000
(this number is also referred to as a "spot rate", or just "rate", for short).

What is Forex trading?

The investor`s goal in Forex trading is to profit from foreign currency
movements.
More than 95% of all Forex trading performed today is for speculative purposes
(e.g. to profit from currency movements). The rest belongs to hedging
(managing business exposures to various currencies) and other activities.
Forex trades (trading onboard internet platforms) are non-delivery trades:
currencies are not physically traded, but rather there are currency contracts
which are agreed upon and performed. Both parties to such contracts (the
trader and the trading platform) undertake to fulfill their obligations: one
side undertakes to sell the amount specified, and the other undertakes to buy
it. As mentioned, over 95% of the market activity is for speculative purposes,
so there is no intention on either side to actually perform the contract (the
physical delivery of the currencies). Thus, the contract ends by offsetting it
against an opposite position, resulting in the profit and loss of the parties
involved.

How do I monitor my Forex trading?

Online, anywhere, anytime. You have full control to monitor your trading
status, check scenarios, change some terms in your Forex deals, close deals,
or withdraw profits.

How do I start trading?

If you wish to trade using the Easy—Forex” Trading Platform, or any other, you
must first register and then deposit the amount you wish to have in your
margin account to invest. Registering is easy with Easy—ForexT”‘ and it accepts
payment via most major credit cards, PayPal, Western Union. Once your
deposit has been received, you are ready to start trading.

How risky is Forex trading?

               You cannot lose more than your initial investment (also called your "margin").
The profit you may make is unlimited, but you can never lose more than the
margin. You are strongly advised to never risk more than you can afford to
lose.

How does one profit in the Forex market?

Obviously, buy low and sell high! The profit potential comes from the
fluctuations (changes) in the currency exchange market. Unlike the stock
market, where share are purchased, Forex trading does not require physical
purchase of the currencies, but rather involves contracts for amount and
exchange rate of currency pairs.
The advantageous thing about the Forex market is that regular daily
fluctuations - in the regular currency exchange markets, often around 1% - are
multiplied by 100! (Easy-Forexm generally offers trading ratios from 1:50 to
1:200).

what is leverage

"Leverage" is the Forex advantage
The ratio of investment to actual value is called "leverage". Using a $1,000 to
buy a Forex contract with a $100,000 value is "leveraging" at a 1:100 ratio.
The $1,000 is all you invest and all you risk, but the gains you can make may
be many times greater.

What happens in the forex market?

Markets are places where goods are traded, and the same goes with Forex. In
Forex markets, the "goods" are the currencies of various countries (as well as
gold and silver). For example, you might buy euro with US dollars, or you
might sell Japanese Yen for Canadian dollars. It’s as basic as trading one
currency for another.


Of course, you don't have to purchase or sell actual, physical currency: you
trade and work with your own base currency, and deal with any currency pair
you wish to.

Forex? What is it, anyway?

The market


The currency trading (foreign exchange, Forex, FX) market is the biggest and
fastest growing market on earth. Its daily turnover is more than 2.5 trillion
dollars. The participants in this market are central and commercial banks,
corporations, institutional investors, hedge funds, and private individuals like
you.