FOREX

ON-LINE GLOBAL FOREIGN

CURRENCY TRADING
 Introduction to FOREX

The Foreign Exchange Market, also

referred to as the “FOREX” or “FX”,
exists wherever one currency is
traded for another. It is the largest
and most liquid financial market in
the world.
 Market Participants
 Banks
 Commercial Companies
 Central Banks
 Hedge Funds
 Investment Management Firms
 Retail FOREX Brokers
 Other Non-bank FOREX Companies
 Nature of the Business

The business is about gaining profits

from the fluctuation or movement of
one currency to another.

It is a simple BUY and SELL business.

Trading Currencies and Contract Sizes
Currency Pair – Contract Size
 EURUSD 100,000 EUR
 GBPUSD 100,000 GBP
 USDJPY 100,000 USD
 USDCHF 100,000 USD
 AUDUSD 100,000 AUD
 NZDUSD 100,000 NZD
 USDCAD 100,000 USD
 GBPJPY 100,000 GBP
 EURJPY 100,000 EUR
 AUDJPY 100,000 AUD
 EURGBP 100,000 EUR
 EURCHF 100,000 EUR
Basic FOREX Trading Principle
 BUY at low price

 SELL at high price

 HOLD position when the

market is in congestion or
has no clear trend.
How to make money in FOREX Trading?

1. BUY first, SELL later 2. SELL first, BUY later

(Exit) Sell High (Entry) Sell High

(Entry) Buy Low (Exit) Buy Low

 Leverage / Margin System
Currency Contract Size Day Trade Night Trade Min.Fluct’n Value per
Pair ( 1 Lot ) Margin Margin 1 point Point

EUR USD € 100,000 $ 1,400 $ 1,400 .0001 $ 10

GBP USD ₤ 100,000 $ 1,400 $ 1,400 .0001 $ 10

USD JPY $ 100,000 $ 1,400 $ 1,400 .01 Approx.

$9

USD CHF $ 100,000 $ 1,400 $ 1,400 .0001 Approx.

$8
 Time span: 9 hours Sell 1.8461

1.8461 – 1.8129 = 332 pts

Buy 1.8129 332 x $10 = $3,320 /
lotData: Trade Balance
Sell 1.8470

Time Span: 5 min

1.8470 – 1.8220 = 250
pts
250 pips x $10 =
$2,500/lot
Buy 1.8220

Data: Non-Farm Payroll

Est. (250K) Act.(32K)
 Features of the Business
1. Stability

- unaffected by local economic cycles

- with ready market buyers/sellers

24 hours a day 5 days a week

- market is so vast no one can claim

monopoly or control over price
 Features of the Business
2. Extreme Liquidity
- you can liquidate or take your profits
anytime at the price you want

- it is the largest market in the world with

average daily trade in the global FOREX
and related markets and was
continuously growing and was last
reported to be over of US$ 4 trillion in
April 2007 by the Bank for International
Settlement.
 Features of the Business
3. Security of Money

- fund is deposited in a custodian bank

- fund is not made part of the operational

outlay of the company

- no holding period, no taxes

- you can withdraw anytime

 Features of the Business
4. Flexibility

- you can transact business anytime

and anywhere

- you can enter or exit the market

anytime

- you can do the business in 3 ways

BUY, SELL or HOLD
 Features of the Business
5. Transparency

- the business is done online through

a trading facility called FX Station

- you have access to your account

anytime anywhere
 Features of the Business
6. Absolute Control of the Business

- Client with sole access to trading account.

- Password can be changed at client’s

discretion

- Prior consultation and approval is deemed

necessary before a broker/trader opens
and executes a business transaction for
the client.
 Features of the Business
7. Easy to Start Up

- no need to worry about DTI/SEC

registration, permits, receipts, invoices,
manpower, inventories, markets and other
expenditures

- everything is set up and operational

- can start the trading the moment you sign

the trading agreement and deposit the
required fund or capital to the custodian
banks.
 Features of the Business

8. Unlimited
Profit
Potential
Prepared By: Mishell Mc Vey-Hally Sy Bang
Business Executive/FOREX Trader

Assisted By: Flavio Bautista Jr.

Manager/FOREX Trader