Forex Guide eTrading

Trader and start making money with Forex WinTrader and MetaTrader If you just get to know the Forex market through the Internet, you will not regret your discovery! This guide is intended to introduce you to basic knowledge, as well as tools and techniques necessary for any novice making his first steps into the fascinating world of Forex. Online Forex Trading Guide
Introduction: Why Forex? If you read this guide, you're probably already interested in the market "Forex" (Trading of international currencies). But what can really bring you this platform exchange? -Accessibility: no wonder that the Forex market has a daily trading volume of 3 trillions: all the requirements to be active is to have a computer and a connection internet. Operationality-permanent: the Forex market operates 24 hours 24, and you can be on the blow at any time if financial scoop. Needless to nail biting before the bell Opening rings. -Target Market: Unlike the stock market, smaller, but tens of thousands of values ​​to study the Forex market does not revolve only around about eight major currencies. This choice small leaves no room for confusion and, although the market is huge, it is easy to a clear picture of what is going on. -Cash: Foreign currency trading is the largest financial market in the world with sales Business Daily more than 3 trillion dollars! Beyond the impressive statistics, the magnitude of the Forex market is also one of its greatest advantages. The enormous volume of trade newspapers made him the most fluid market in the world. This effectively means that in normal market conditions you can buy and sell the amount of currency that suits you. You can never run out of money to buy one, or stuck with one another that you do can not get rid of. 


-Independence: the colossal size of the Forex market also means that no one can monopolize. Even the banks do not have enough power to really control the market for a long period, making it an ideal table where any player can bet quietly modest. Click here to create a free account ICM in order to lead, and join today Forex market. Online Forex Trading Guide 4 Profitability No need to be a financial genius to understand that the interest of any market, or just any financial company, is the ability to make a profit. On the market Forex, this cost manifests itself in several ways. First, to set the record straight, no need to be a millionaire to trade currencies. Unlike other financial markets, the Forex offers the possibility to start with a relatively low initial capital. At ICM, you can even start trading the Forex from $ 500! Right now, you're probably wondering, "what may be my chance to make a with an initial advantage as ridiculous? "The Forex market does not require large initial investments, because it gives you the opportunity to use the Trading with leverage, which to open positions of tens of thousands of dollars by investing all that really sums as low as $ 500. This means that Forex trading has a potential benefits (and losses!) of tens and even hundreds of percent a day! What is also remarkable in the Forex market is that any trend is a trading opportunities. This trend is downward or upward, there is always an opportunity to speculate, since you always keep the option to buy or sell currency of your choice. Unlike the stock market, you are not limited to only speculate on Stocks rise, and a down market can be as interesting a market for business on the rise. That said, we must not forget that although it is a source of profit, the Forex market involves exactly the same risks as trading stock. You should always remain aware of risks and never wager a sum that you can not afford to lose. Online Forex Trading Guide 5 Take advantage of price fluctuations The transaction of Forex trading is exciting. The market is in constant motion, and each of its tremors may result in profits or losses of hundreds, even thousands of dollars! Here's how it can happen: In general, the eight most traded currencies on the Forex are: USD U.S. Dollar EUR Euro GBP Pound Sterling JPY Japanese Yen CHF Swiss Franc CAD Canadian Dollar AUD Australian Dollar NZD NZ $ Zealand The Forex trading is always done in pairs, since all exchanges simultaneously means the purchase one currency and selling another. Transactions will therefore between 14 major pairs: EUR / USD EUR / JPY GBP / USD EUR / GBP USD / JPY EUR / CHF USD / CHF GBP / JPY USD / CAD GBP / CHF AUD / USD CHF / JPY NZD / USD EUR / CAD At a sale or purchase of a currency pair, each has its own course "Bid / Ask" (Supply / Demand), for example: Online Forex Trading Guide 6 This means you can either: Sell ​​the pair in "Offer" of 1.3961 or buy in "Application" of 1.3963 OK, but how can we profit? These currency pairs are "volatile" and constantly fluctuating. One way to win is to buy a pair and then resell when the value rose. The second is to sell a pair, then buy it back when she fell. While your positions become profitable, you find that your account "Equity" climbs real-time both on WinTrader on MetaTrader. When you close a position on a profit, your earnings will "realize" and are also added to your account. Online Forex Trading Guide 7 The trend is your ally. The trend analysis is based on the assumption that what happened in the past can be an idea of ​​what will happen in the future. While this may seem simplistic, being able to know when a pair is in a trend, or when it is not there, will increase your chances consistent profitability in the Forex. When you identify a trend, you can estimate the direction it will take, and operate by placing a transaction in that direction. If it is an upward trend, which means that the price goes up, buy the currency pair increase your chances of profit. If the trend is downward, and the price decreases, it will be better sell it. How to recognize a trend? What are the characteristics of a trend? The easiest way to identify a trend is by observing the particular curve that form the fluctuation of its course. So you can tell if the market is rising or falling. Identify a trend Forex When a trend is developing for a pair of currencies, changes in current form peaks and valleys easily recognizable in the graph of this pair. For an upward trend, fluctuating form a series of peaks and valleys higher (increases higher, lower reductions). A picture is worth a thousand words, observe the graph following: Online Forex Trading Guide 8 This graph suggests that the trader should buy the currency pair (and close the transaction at a profit, in selling it after the value has risen). In a downward trend, fluctuating values ​​form a series of peaks and valleys low (peaks lower, lower valleys). This graph suggests that the trader should sell the currency pair (and close the transaction at a profit, in buying it, after the value has declined). It is important to note that there are days where no trading trend is evident (the fluctuations in value as a "Range": literally, a "mountain", in contrast with peaks and valleys) and of course, you may experience an occasional reversal. As a result, all this can be seen as an infallible guide to transaction. Online Forex Trading Guide 9 Looks like a Range. It is easier to make predictions with a trend, with a Range. However, it is also possible to make money in a Range, provided that they remain alert in order to make flashes back and forth on the market. Needless to say, it makes life more difficult for a trader, and risk of loss more tangible. The trading range may be confused and unpredictable and it is always better to be on the lookout for trends. As a general strategy, it is best trader in the direction of the trend, rather than against it, this Which means that if the general market trend is up, you should think carefully before take a position focusing on a change in trend towards the opposite. The search for trends is based on the idea that management has a value will continue in the future. It operates in three time scales: short, intermediate, and long-term, the their trends are always very specific. For example, here's a possible scenario in the Forex. Over the last 12 months, the trend for the EUR / USD is on the rise, over the last 30 days, she is declining, and the last 24 hours (intra-day), the trend is upward. Regardless of the calendar, traders will keep their position until they consider the trend has actually reversed. Online Forex Trading Guide 10 Thus, the goal is to identify a trend you trust, and to trade accordingly. Needless to say, you should monitor the market in case of error: if the trend disappears or does not spill. In this case, it's time to cut your losses by closing this transaction at a loss, or the "stunning" close this transaction and open another in the opposite direction. Online Forex Trading Guide 11 Use of leverage If you already acquainted with the Forex, you probably heard right, left, the "lever". What exactly does this word mean? Leverage is an important aspect of Forex and it is vital that you understand exactly how it works and how to use it. Forex traders use the term to be reference to the ratio of the amount actually invested, compared to the actual value of the transaction. Forex traders have the habit of giving their customers the ability to negotiate with the capital borrowed, so they do not have to invest tens of thousands of dollars in hopes of profits substantial. When you trade with a leverage of 100: 1 (or "100 1"), this means that for every dollar you invest in the market, the operator invests 100 for you, you can and have a total of $ 50 000 by not investing that $ 500. ICM provides the ability to exchange traders using leverage of up to 400: 1. We will not surprise you by saying that the risks increase simultaneously with the profit opportunities. Stir in much lighter price fluctuations can help you to win large sums, as they may cause you to lose your money very quickly. The higher the leverage, the more you are entitled to expect consistent profits, and the sooner you may lose your investment. A lever 400: 1 can save you more than a lever 100: 1, but it will cause more risk to your investment. If you trade 100: 1, the market is expected to generate 100 pips (hundredths differences between the price purchase and sale price) against you to make your position valid. By cons, if the transaction is via a lever 400: 1, the market would generate more than 25 points for the same result. The ratio of lot size, the size of the transaction and use the lever The lot size for a transaction of ICM WinTrader is $ 10 000. The advantage of trading with the Leverage is your profit potential is unlimited. At ICM, any loss is limited to the amount of your initial deposit. Once the price falls below the courses covered by your investment, "Usable Margin" on WinTrader goes to zero, or the "Free Line" MetaTrader goes to zero, and the transaction closes automatically. Online Forex Trading Guide 12 Remember that the lever can be the best friend of the trader, when used carefully, or although his worst enemy when used to punch. It is an effective tool to increase its profits, and indeed, private traders almost always use it. But never forget that the higher the leverage, the higher the risk level increases. Now that you have in hand the basic tools, you can finally make your first transaction! Online Forex Trading Guide 13 A basic example of Trading. Are you ready? It's time to trade! If you do not have an account WinTrader ICM practice, open one for free at: www.icmtrading.com / free_demo. You will get a username and password, hurry up to download the software. Go ahead, log onto your account. Here are some actions required to place a transaction: -Identify the pair to buy or to sell -Decide on the initial size of the transaction (in batches) -Consider setting up stops or limits (subject of the next chapter) Open-transaction Let enjoyed after watching the charts of several currencies, you have concluded the EUR / USD took a rising trend. What would be the reasonableness consistent with this conclusion? Obviously, you can make a profit by buying the EUR / USD (EUR buy, sell USD) Reminder: we buy at the price "request" so they sell at the price "Offer" Say you have bought a lot of EUR / USD on your account WinTrader ICM. Here are the details of your transaction: Used Margin: $ 25 Transaction Size: 1 lot or 10 000 Euros [1 lot is 100 000 Euros on MetaTrader, but we will use the batch size of 10 000's on WinTrader for this example] Lever: 400: 1 (10 000/25 = 400) EUR / USD (Application): 1.3956 Clearly, you have just purchased 10,000 units of EUR / USD, which, on this particular course, is 1.3956 USD 1 EUR. Online Forex Trading Guide 14 Now imagine that at the end of the day, or even a few minutes later, during EUR / USD has risen to 1.4066. When you sell your units of 10 000 Euro / USD to the new over 1.4066 and get $ 110. This means that this seemingly insignificant fluctuation of the course allowed you to win $ 110 Used Margin on original, with an investment of only $ 25. In other words, you just make a profit of 708% on your investment through exchange rate movements and use the lever. In the example we just saw, your profit was in no way limited, while the risk was limited and your down payment. Online Forex Trading Guide 15 Coverage of risks and rewards The Forex Trading can be a dangerous business. This chapter will deal with orders to "off" (Stop Loss) and Limit (Take Profit). They are used to cover your risks and rewards, in achieving your profits and minimizing your losses. ICM will automatically close your transactions at a particular level to prevent you lose more than what you invested (Margin Call or MC on your account statement) if the price drops below what your investment is covered by (Used Margin), the position is closed automatically. This means that the maximum amount you can lose in a transaction is still limited to your initial investment. Obviously, there is no reason to expect that you will lose your entire investment to close the transaction. By introducing a stop command, you ensure that your position does not fall below a certain level. So you control the maximum amount you afford to lost in a transaction without having to monitor all exchanges at all times. Lose a few transactions is common for a trader. Recipes for a winner is a trading knowledge limit its losses by using stops to limit the risks. Limit orders, sometimes called "Take Profit", or T / P are similar to stop orders, except that they apply only to profits. Limit orders guarantee that once a certain level of profit, the transaction will be closed in order to maintain this advantage. For example, suppose you bought a EUR / USD over 1.3950. After a few hours the price falls to 1.3900. Without limit order, the rise of the course could get away, and this ending with a loss. If you have a limit order, the potential profit from the transaction will be carried out without having to monitor the transaction time. Remember that the stop orders and limit are simple techniques that can make the difference between a successful career as a trader, and a big hole in your pocket. Remember to use in all your transactions. Online Forex Trading Guide 16 Quest for the volatility The Forex market operates 24 hours on 24, but what is the best time to make money? Well that the market is always open, except on weekends, all hours are not favorable. If the market is open so long, it's just because they are different sessions around the world, made subsequently form a visible action of 24 hours. The hours which will include the most active market, which will be most transactions will be time most favorable to the action and profit. Trading sessions ("GMT" - Global Market Time): As the sessions in London are the most active of the four, the best times to trade are 8am-9am (GMT) and 13h-17h (GMT), because it is at these times that the sessions London overlap with other sessions. Remember that even if it was possible to trade 24 hours on 24, it would be better to plan your activity to fall over when there is more action, so the best chance of winning, and less likely to lose. Online Forex Trading Guide 17 Managing Money Is there a secret to success as a trader? There is a method that uses each trader, and which is not secret, it's called "money management". This is not a jargon in the finance, it simply means having the knowledge and talent necessary for the administration of your Forex account. Despite its obviousness, it is indeed the recipe for a long and successful career. Yet we forget where it is often overlooked in the frenzy of business. Let us explain some basic rules by which to be able to manage your money effectively. Do not aim the big deal, because it often ends in big loss. Successful trading is a consisting of trading, which earns little but steadily, so much over time. Do not imagine that all your transactions will benefit and get used to the idea of ​​losing sometimes. You should only risk a small percentage of your account balance. This simply reduces risks, so that even if you lose your entire investment on a transaction, not will not be catastrophic to your account. The recommended amount is 2% of your account by transaction. There are more aggressive traders who go up to 5% but never more. It is a rule important because the more your account is empty, it will be harder to fill it again. Use stop orders and limit effective because they protect your investment and guarantee profits. These are simple tools that make all the difference to your account. Transaction size We advise you not to open that small transactions, because in case of transactions at a loss, you can open a reversed with a larger investment, or with greater leverage to to offset your losses. Practice trading with the free account ICM Practice trading: ICM provides a full demonstration version of Trading Time Real garnished with an account of virtual money. Everything works just like a Live account, but you do not risk any real money. We recommend that you perform to get to know with this platform and gain experience. Even after starting to build real, it's always good to return to the practice Free to test new trading strategies. You have no reason to risk your Online Forex Trading Guide 18 money to test the effectiveness of a theory, then you can do both without any risk. Only after having been sure of success of your strategy that you can try it on a real account. Remember that government money is easy to manage, but not easy to perpetuate. Once you've mastered a delivery system that suits you, keep it and do not let your emotions counteract a long-term profit, even if it means wipe off some minor setbacks passengers. Now that you're equipped, take the time to practice. Go www.icmtrading.com / apply to open a free account and start enjoying the market Forex! Online Forex Trading Guide 19 Glossary Ask: Price at which the operator is willing to sell. See "Offer" Balance: The value of your account, excluding gains or losses being on open positions. Bid: Price at which the operator is willing to buy. Bid / Ask Spread (or "Spread"): generally Difference "pips" between the Bid price (supply) and the Ask (demand). Cost of Carry (also "Interest" or "Premium"): Cost, often expressed in dollars or pips per day to keep an open position, or cost of carry. Currency Futures: Futures contracts traded on an exchange, often the Chicago Mercantile Exchange ("CME"), always expressed in terms of being a currency, compared to the US Dollar. Parameters futures contracts are formatted by the changes. Drawdown: The magnitude of the decline of an account, either in% or in dollars, measured between the top and the current state. For example, if a trader's account increased from 10,000 to $ 20,000, then dropped to $ 15,000, and climbed back to $ 25,000, the trader will have a maximum drawdown of $ 5,000 (incurred when down from 20,000 to $ 15,000), although the account was never in a loss position from the origin of the operation. Equity: Represents the current value of your account on the market. Equity = Balance + (losses and not yet realized profits on open positions). Forex: Short for "Foreign Exchange". Described is the platform for the exchange itself, either currencies. Fundamental Analysis: Macro or strategic assessment of the level at which a currency should be negotiated, based on criteria other than the very course of the currency. These criteria often include economic condition of the country represented by the currency, monetary policy, and other rights. Leverage: The amount in multiples by which the notional amount traded (also known as "Lot size" or "contract value") is $ 100 000 and the "margin requirement" of $ 2 000, the trader can then negotiate with a 50 times leverage ($ 100,000 / $ 2,000). Limit: Also called "Take Profit" or T / P. Order to buy at a specified price when the market drops below this course, or to sell at a specified price when the market rises audessus of this course. Liquidity: A function of volume and activity in a market. Is the efficiency and capacity cost with which positions can be traded and orders executed. A market is more fluid provide more quotes solicited, with a spread (range) Bid / Ask narrower. Online Forex Trading Guide 20 Margin: Amount of funds required in a client account to open or maintain a position open position. For example, a 1% margin means that a trust fund of $ 1 000 is required for a position of $ 100 000. Margin Call: Requirement for the operator to deposit more funds to maintain an open position. Sometimes a "margin call" means that the position of missing trust funds will simply close by the operator. This procedure allows the client to avoid more losses or an overdraft on his account. Market Order: An order to buy at "Ask". Offer: Courses which the operator is willing to sell. See Ask. Pip: The smallest increment in a currency. Often called "ticks" in the futures markets (Futures). For example, EUR / USD, with a fluctuation .9015 .9016 is one pip. In USD / JPY a fluctuation of 128.51 to 128.52 is one pip. Premium (also "Swap" or "Cost of Carry"): Cost, often denominated in dollars or pips per day, keep an open position. Roll over: Changes in future when they expire, a new contract. Spot Foreign Exchange: Often referred to as: market "interbank". Refers to currencies traded between two parts, usually two major banks. Spot Foreign Exchange is generally traded on margin and that the market in which this website focuses most. In general, they are smoother and more widely used than currency futures, particularly by institutions and professional property managers. Stop: Also called "Stop Loss" or "S / L". Order to buy only when the market rises until a predetermined price, and sell when it drops to a predetermined course. Technical Analysis: Analysis applied to course development of a market to develop trading decisions, ignoring fundamental factors. Tick: lncrément the least in a "future" or in a class of securities CFD. Often called "pip" in foreign exchange markets. For example, the Dow Jones Industrial, a fluctuation from 8845 to 8846 will be a Tick. For the S & P 500, a fluctuation will be 902.50 to 902.51 a tick. Usable Margin: Amount in your account that may be available as margin for new positions. Usable Margin (usable margin = Equity - Margin Used (used)) Used Margin: Amount of your account as necessary margin for open positions. Margins requested on the ICM WinTrader is $ 25 per lot. For example, if you have three lots of positions open your used margin is 3 x $ 25 = $ 75. Note that the margin is not a cost could be taken one way or another of your account. Currency Pair: Symbol Currency Pairs Trading Terminology Online Forex Trading Guide 21 GBPUSD Pound / US Dollar "Cable" EURUSD Euro / US Dollar "Euro" USDJPY Dollar / Japanese Yen "Dollar Yen" USDCHF Dollar / Swiss Franc "Dollar Swiss", or "Swissy" USDCAD US Dollar / Canadian Dollar "Dollar Canada" AUDUSD Australian Dollar / US Dollar "Aussie Dollar" EURGBP Euro / Pound "Euro Sterling" EURJPY Euro / Japanese Yen "Euro Yen" EURCHF Euro / Swiss Franc "Euro Swiss" GBPCHF Pound / Swiss Franc "Sterling Swiss" GBPJPY British Pound / Japanese Yen "Sterling Yen" CHFJPY Swiss Franc / Japanese Yen "Swiss Yen" NZDUZD New Zealand Dollar / US Dollar "New Zealand Dollar" or "Kiwi" USDZAR Dollar / South African Rand "Dollar Zar" or "South African Rand" Gold Spot Gold (XAU) "Gold" Silver Spot Silver (XAG) "Silver iTrade Capital Markets Ltd. www.icmtrading.com email: info@icmtrading.com tel:             +1 284 494 5504