Lesson 1

Introduction to Forex
Hazzer A. Tacbil
 WHAT IS FOREX?
♦ The Foreign Exchange (FOREX) market one in which a nation currency is traded at a
mutual agreed rate.
♦ FOREX market is run electronically within networks of banks, 24 hours, 5 days a
week.
♦ Largest market in the world - $3 trillion per day versus $500 billion for stocks.

The Business of FOREX Trading

♦ Minimal Investment
♦ Minimum trading accounts starts at $200
♦ Minimal Time Commitment
♦ No Employees, Inventory or Supply
♦ Recession proof!
♦ To Succeed, You must willing to work hard and master this professional skills.
 FOREX Basics
Forex is quoted in currency pairs.
Each currency is given a 3 letters code
Currency Exchange Rates
Currency Exchange Rates
 Contract Sizes

Other
Lots
 Calculating Forex Profits
Profit/Loss=
No. of PIPS
X No. of Lots
X Value per PIP per Standard Lot
 How to earn money in FOREX
Without knowledge in FOREX market?

HIRE an
ACCOUNT MANAGER
 What is a FOREX managed account?

• A managed forex account is where a professional trader /

money manager manages the trading on the clients' behalf. The account is made
up of a personalized portfolio owned by a single investor. The portfolio
and account is handled accordingly to the investors needs.

• This is where a money manager handles the investments and trading of the
client’s account on their behalf. They manage the client account by seeking
trading opportunities, implementing their own strategies or even taking input
from the client on what they would like to trade and how.
Advantage of Having Account/Fund Managers

• Less Stress
• Less Hassle
• Consistent income over a period of time
• Managed funds offer solutions for almost
every investor a period of time
• Diversification of risk
• Access to International markets and
investments
 Minimum Earnings

Everyday can earn minimum of 30 Pips

Assuming that you earn

30 pips in a day
Invested 10USD

10USD X 30 Pips = 300 USD

300 USD X 20Days a month

= 6,000 USD
 Average Earnings

Everyday can earn Average of 70 Pips

Assuming that you earn

70 pips in a day
Invested 30USD

10USD X 70 Pips = 300 USD

700 USD X 20Days a month

= 14,000 USD
Potential Advantages of Investing in Managed
Accounts

• Ownership and Liability

• Reduced Costs
• Customization
• Liquidity