Admiral Markets

What is FOREX

What is FOREX?
The Foreign Exchange market, also referred to as "Forex" or "Retail Forex or "FX" "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of more than $6 trillion a day. If you compare that to the $50 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stocks and futures markets combined! Forex rocks!

Oooh, the NYSE looks so puny compared to forex! It doesn't stand a chance!

The currency market is over 53 times BIGGER! It is HUGE! But hold your horses, there's a catch!

What is Traded?
Major Currencies
USD EUR United States Euro Zone Members Dollar Euro

JPY
GBP CHF CAD AUS NZD

Japan
Great Britain Switzerland Canada Australia New Zealand

Yen
Pound Franc Dollar Dollar Dollar

Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that countrys currency.

Currencies Are Traded in Pairs

Forex trading is the simultaneous buying of one currency and selling another.

Imagine each pair constantly in a "tug of war" with each currency on its own side of the rope. Exchange rates fluctuate based on which currency is stronger at the moment.

Major Currency Pairs

The currency pairs listed below are considered the "majors
Pair EUR/USD Countries Euro zone / United States FX Geek Speak "euro dollar"

USD/JPY
GBP/USD USD/CHF USD/CAD AUD/USD

United States / Japan

United Kingdom / United States United States/ Switzerland United States / Canada Australia / United States

"dollar yen"
"pound dollar" "dollar swissy" "dollar loonie" "aussie dollar"

Market Size and Liquidity

The forex market is considered an Over-the-Counter (OTC), or "Interbank", market due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

The Dollar is King

The United States economy is the LARGEST economy in the world. The U.S. dollar is the reserve currency of the world. The United States has the largest and most liquid financial markets in the world. The United States has a super stable political system. The United States is the world's sole military superpower.

Advantages of Forex with Admiral Markets

Leverage No fixed lot size

No commissions

No middlemen
A 24-hour market

Low transaction costs

High Liquidity.

No one can corner the market

Market Players

The Super Banks Large Commercial Companies The Speculators Governments and Central Banks

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In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank market. The entire market is run electronically, within a network of banks, continuously over a 24-hour period.

Until the late 1990's, only the "big guys" could play this game.

 Forex was originally intended to be used by bankers and large institutions - and not by us, retail customers. However, because of the rise of the Internet and global economy, we, the retail investors are an important part of all markets. Admiral Markets is now able to offer trading accounts to 'retail' traders like us. All you need to get started is a computer, an Internet connection, and the information contained within this site http://www.admiralmarkets.in/

Trading Sessions
Now that you know what forex is, why you should trade it, and who makes up the Forex market, it's about time you learned when you can trade. Yes, it is true that the forex market is open 24 hours a day, but that doesn't mean it's always active the whole day. You can make money trading when the market moves up, And believe us, there will be times when the market is as still as the victims of. This lesson will help determine when the best times of the day are to trade.
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Market Hours
Time zone SYDNEY OPEN SYDNEY CLOSE TOKYO OPEN TOKYO CLOSE LONDON OPEN LONDON CLOSE IST 6:00 AM 3:00 PM 7:00 AM 4:00 PM 12:30 AM 9:30 PM

NEWYORK OPEN NEWYORK CLOSE

6:30 PM 2:30 AM

Best Days of the Week to Trade

Below is a chart of average pip range for the major pairs for each day of the week:

Worst Times to Trade:

Sundays - everyone is sleeping or enjoying their weekend! Fridays - liquidity dies down during the latter part of the U.S. session. Holidays - everybody is taking a break. Major news events - you don't want to get whipsawed! During American Idol, the NBA Finals, or the Superbowl.

How You Make Money in Forex

EUR/USD 0.10 0.20 0.30 0.50 10,000 20,000 30,000 50,000 1$ 2$ 3$ 5$

0.60
0.80 1.00 3.00 5.00

60,000
80,000 1,00,000 3,00,000 5,00,000

6$
8$ 10$ 30 $ 50$

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1) Commodities market Oil Gold Silver Industrial Commodities Soft Commodities

2) Currency Market(Forex) Largest market in the world Open 24h a day, 5 days a week.

Admiral-Trader

3) Equities Market Stocks and Bonds (stocks of US companies, bonds from the US and German markets); Contracts for indices: USA, UK, France, Tokyo, Warsaw,India and many more.

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Market Correlations (commodities - example)

Commodities are quoted in U.S. dollars, thus the weakening of the U.S. currency increases the interest in commodities, because they are cheaper for investors having other currencies, therefore prices of commodities go up because of higher demand.

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EURUSD vs. GOLD

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Most Traded currencies of all is EUR /USD, being 86% of all transactions.

Margin (initial deposit)

Margin blocked when opening a transaction;

It allows the use of leverage;

Margin amount (standard): 1% of nominal for currencies 2% of nominal for indices 3% of nominal for commodities 7% of nominal for equities

Margin allows you to open a large number of trades with a small commitment of capital.
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Free Demo Accounts, News, Charts, and Analysis

Admiral Markets offer 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free! These are very valuable resources for EAGER TO LEARN traders who would like to hone their trading skills with 'play money before opening a live trading account and risking real money.

Demo Trading
You can open a demo account for free with Admiral Markets. This account has the full capabilities of a "real account. Why is it free? It's because the Admiral Markets wants you to learn the ins and outs of their trading platform, and have a good time trading without risk, so you'll fall in love with them and deposit real money. The demo account allows you to learn about the Forex markets and test your trading skills with ZERO risk.
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You can be a winner at Admiral Markets, but as in all other aspects of life, it will take hard work, dedication, a little luck, a lot of common sense, and good judgment

Thanks for your attention

Admiral Markets Ashwin Peswani +91-9503026000 ashwin@admiralmarkets.in
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