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Introduction to Forex

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Discover the advantages of trading with easy-forex! we provide you with unique tools, products and essential knowledge base for successful trading.

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Page 1: Introduction to Forex

easy-forex

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Introduction to easy-forex®

Copyright Blue Capital Markets Limited.

October 2013.

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Introduction to forex

What is forex?

When do I trade?

What is the cost of trading?

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What is forex?• Forex, FX or currency trading is the buying and selling of currencies.

• If you’ve travelled, you’ve probably already made a foreign exchange trade when you sold your home currency and bought the foreign currency.

• The difference with the online forex market is that you don’t physically buy or sell currencies, you are speculating on price movements.

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What is forex?• With online forex trading currencies are traded in pairs.

EUR vs. USD; CNY vs. EUR; EUR vs. GBP…etc

• Each currency pair has a specific rate or value that is constantly moving depending on market conditions.

EUR/USD – 1.3044; GBP/USD – 1.6032;…etc

• When you are ready to open a deal you will be buying one currency and selling another at the same time.

• Depending on whether your buy or sell, and what direction the market moves, will determine if you will make a profit or loss.

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What is forex?• The forex market is one of the largest trading environments in the world

with over 4 trillion USD traded every day!

• Forex trading is particularly exciting because you can leverage your investment.

• This means that (depending on your leverage) you can buy up to 200 times more of a currency that you have.

• For example, with only $25, you can purchase up to $5,000 worth of another currency.

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What is forex?• Your leverage rate can be adjusted from as high as 1:200 to 1:50.

Adjusting your leverage is done by increasing or decreasing your margin to risk.

• Your margin to risk is your investment amount for each deal and an amount that you are prepared to risk. The minimum margin to risk is $25.

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• Largest single market in the world• Stock exchanges average daily turnover:

75,000,000,000• Forex average daily turnover:

4,000,000,000,000• Unrivalled liquidity• 24/5 trading hours• Always buyers & always sellers

What is forex?

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What is the cost of trading?• As mentioned before, there are always two prices for a currency pair.

The buy and sell price. The difference between the two prices is called the spread.

• The spread (difference between buy & sell) for the EUR/USD in this example is 4 points or pips.

• Pips are “percentage in points” and represent the single smallest unit of a price. In the case above, one pip = 0.0001.

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When can I trade?• Another major advantage in forex trading is that, you can trade 24hrs

5 days a week.

• Trading opens on Monday at 06:00 Sydney (Australia) time and closes on Friday at 17:00 New York time.

• No trading occurs over the weekend.

24 / 5

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Who is easy-forex?

Our Products

Unique ToolsOur Platforms

Knowledge Base

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Who is easy-forex?• First and foremost we are people dedicated to bringing you the best

possible trading experience.

• Since 2003, easy-forex has been revolutionising forex trading in over 150 countries.

• We provide multilingual customer care, specialised account service managers and experienced dealers.

• We give you the opportunity to trade currencies, metals (e.g. gold, silver), indices (e.g. footsie, Dax, S&P 500), energy & agricultural commodities (e.g. oil, coffee) and forex options - all from one account.

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Our Manifesto1. We’re focused on the only person that counts

You

2. Forex should be easy• Forex looks difficult and complicated, only for the big boys• We’ll make it easy and accessible, allowing anyone to trade

3. Forex is exciting• Finance should not be boring• We feel the excitement of forex• We’ll bring this excitement to you

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Our Manifesto4. It’s a competitive world• We are devoted to creativity & constant innovation

5. Forex is a tough game• Truth and transparency will always guide our behavior• We’ll hide nothing from you. Least of all the truth

6. Work is serious and fun• We’re casual and approachable• But disciplined and professional

7. We’re always available for you• We’re ready….are you ready?

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Our Products• We understand that different traders have different needs, which is why

we are proud to offer multiple products to suit ever trader.

• Our products include:Web TradingDesktop – TradeDesk™ & MT4Mobile site and AppsOptions trading

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Web Trading• Online trading from any computer, anywhere in the world.

• Our online multilingual platform gives your 24/7 secure access to your account from anywhere in the world. Trade from home, your office or even the beach.

• Some of the features are guaranteed stops, fixed spreads, advanced charting, market sentiment with the Inside Viewer™, SMS Alerts, Freeze Rate and One-Click Trading.

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DesktopTradeDesk™

• Customised trading for the high-performance trader.

• A personal trading environment for charting, market information and trading. TradeDesk™ is a desktop program that uses a series of apps that allow you to create your own layouts.

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Desktopeasy-forex MT4

• MT4 with the easy-forex level of support.

• An ideal platform for traders looking for extensive technical analysis. Multiple order types, 85 pre-installed indicators, multiple charts layouts, auto-trading & 20 years of data for back-testing Expert Advisors.

• Features include: Guaranteed stops, fixed spreads; microlots; no dealer intervention; MT4 Multi Terminal; MT4 Mobile; Margin call 70%, stop out 30%.

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Mobile• Trade anywhere, anytime with easy-forex

mobile site.

• Stay up-to-date with the market and trade when you’re on-the-go with your smartphone or tablet.

• Get all the great easy-forex advantages and trade on our web mobile site or download one of our great apps for iPhone and Blackberry.

iPhone® is a trademark of Apple Inc.; BlackBerry® is atrademark of RIM. All the above trademarks are registered in the United States and other countries.

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Options trading platform• Trade forex options easily on the

easy-forex options trading platform.

• Speculating - use forex options to profit based on your view of future price movements.

• Protect /Hedging - use forex options to counter the risks from future price movements against your favour.

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Unique Tools

• Trading doesn’t have to be difficult and we’ve developed some trader-friendly tools to help you optimise your trading experience.

• The Inside Viewer™• The Trade Controller ™• Freeze Rate

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Inside Viewer™• The Inside Viewer™ is a breakthrough

feature of our web platform.

• You get insight into real-time trades on the easy-forex platform. It takes the total of all open trades at any one moment and shows you this unique market information.

• With the Inside Viewer™ you can see the popularity of a currency pair, the direction (buying or selling) that other traders are moving and how these deals are structured (take profit rates, stop loss levels…etc).

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Trade Controller™• The Trade Controller™ is the ultimate visual trading tool. It is a

precision control instrument. You can visually adjust the parameters of your deals and check-out alternative scenarios.

• The Trade Controller™ gives you more trading control than you ever thought you could have.

• You can adjust your stop loss; set your take profit rate and see your potential profit or loss.

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Freeze Rate• The Freeze Rate button gives you the opportunity

to ‘lock-in’ the current rate that you see for a few seconds.

• During those few seconds, the market could change, however, easy-forex will execute your trade at the ‘frozen’ rate.

• The Freeze Rate feature is another unique aspect that can be applied when opening or closing a deal.

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Knowledge Base

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Turning your insights into opportunities

The most important thing in building a winning strategy is for you to have access to quality education and access to timely market information.

EDUCATION 40 videos-on-demand a library of forex articles eBook guides webinars live seminars

MARKET INSIGHTS technical & market analysis advanced charting daily video news the Inside Viewer™ SMS market alerts

VIP clients can also discuss the market and opportunities with their own personal dealer.

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Learn Centre• The more you know about forex trading, the better prepared you will be

to formulate trading strategies and make informed decisions.

• Check out our training videos or download our latest eBook.

• Sign-up for online webinars or live seminars, read our detailed forex articles or practice on our trade simulator.

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Research & Analysis• Up-to-the-minute reports and expert

commentary giving you market insights from our dealing room, Reuters and Market News International.

• Get market depth and analyses that financial market professional do through our expert Trading Central reports.

• Experience multiple chart types; select time periods; overlay indicators

and customise your view.• Live from easy-forex headquarters

- daily video news & announcements.

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The Trade Zone

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The currency table shows you popular currency pairs and their respective buy and sell prices. You can customise the table by clicking on the top three buttons

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Click the first of the three buttons to select which currency pairs to view and in which order they will appear.

Simply click on the pair that you want from the left box All Currencies and click the right arrow to move it over to the Show Currencies box. You can move pairs out of the table by selecting them on the right and moving them to the left.

You can also select the order that the pairs will show in your table by moving them up and down using the two arrows. When you are finished making changes, click on set.

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Clicking on the second button will change the view of the table to box view. Clicking the button again will return the table to list view.

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Clicking on the last button will expand/collapse the table to show more or less information.

By expanding the table you can see more information such as the high and low price level from the previous day and the current day.

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On the far right of the TradeZone you can view the current graph for the currency pair you have selected. When you select a new currency pair, the graph will automatically change.

By clicking on the three tabs below the chart you will get a drop down with information on the latest news, important calendar information and the performance of our Indices.

Clicking on the Full charts Station will take you to our more advanced charts page. Please note this will navigate you away from the TradeZone.

Clicking on the Research & Analysis link will also navigate you away to our Research & Analysis section.

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At the bottom of the TradeZone you will find our Inside Viewer™. A revolutionary feature of easy-forex, the Inside Viewer™ allows you to see what other traders are doing.

Select a currency pair you want to have more information about.

Click on popularity. This shows you how this pair ranks with other pairs being traded and the percentage of total deals.

The direction will show you if people are buying or selling and the structure button will show you how other traders have set-up their deals.

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In the middle of the TradeZone you will find the main trading panel. From here you can select to trade currencies, commodities, indices or options and you can select the type of deal to open (day trade, limit order, forward).

Here you can select the currency pair you want to trade.

From here you can also select your margin to risk and the size of your deal in amount to trade.

By clicking the Freeze Rate, you can hold the current rate for a few seconds, before opening the deal by clicking on TRADE NOW

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Once you have clicked on TRADE NOW and opened your first deal, you will see the following confirmation. You will also receive an email with your deal details.

Your deal is assigned an ID number

and you can select to be notified by SMS if the deal closes.

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Once you have opened your deal you will also see your live deal details appear at the bottom of the TradeZone in your My Position area.

If you have open Limit Orders, Forwards and/or Option deals, you will have to click on the appropriate tab in order to see them, as well as any open SMS alerts.

Your deal details will show you at what rate the deal was opened, what is the current rate, your stop loss and take profit levels and your current profit or loss.

You can select the + icon to see more details and you can click on the Modify button to make changes to your stop loss and take profit levels. The ‘Protect’ button represented by the shield icon on the far right allows you to protect that Day Trade by opening a reverse Option position.

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When you click to modify your deal you will see the opportunity to change your take profit and stop loss rates using the Trade Controller™.

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You can use the + and – buttons to make small changes to your rates.

When you change your stop loss and take profit rates, you will also see what this translates to in actual dollars.

To use the Trade Controller™ simply click and drag the red and green bars to adjust your stop loss (red) and take profit (green) levels.

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When you use the Trade Controller™ to make changes to your take profit and stop loss levels, they will automatically be entered in the Modify Deal Details section.

You can also set the take profit and stop loss rates manually by entering the specific rates you want.

When you have everything set the way you want, click on Calculate and then ACCEPT.

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Again, you will receive a confirmation message as well as receive a confirmation email.

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When you are ready to close a deal, click on close at the bottom of the TradeZone

When you click close, a new section will open that will summarize the details of your open deal and your current profit or loss. When you are ready to close, simply click on Freeze Rate and Close Deal.

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Again, you will receive a confirmation message as well as receive a confirmation email.

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At the top-right of your screen you will also see My Account.

From here you can do the following tasks:

• deposit funds• view your account information• check out your free balance • see your trade history• adjust your personal settings, set to receive SMS alerts & change your password• make withdrawals • see the status of these withdrawals.

My Account

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Deposit• Secure online deposit can be made using your credit card, through bank

wire transfer or eWallets like Moneybookers.

• When you first open an account the amount you can first deposit is limited for your safety. Once you submit proof of identity documents your deposit limit is lifted. See the next page for documents required.

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Withdrawals• Withdrawals are made back to the original source of funding, with all

profits being returned to your bank account.

• By default the withdrawal feature is disabled. This is to protect your account and your funds from unauthorised use. In order to enable the withdrawal feature, you must send the following documents:

1. Proof of identity (copy of a ID / passport)2. Proof of address – must have your name and home address (utility bill, bank

statement…etc)3. Copy of your credit card statement, showing your deposit to easy-forex.

• It can take between 3-5 business days for the funds to reach your account.

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Password Reset• If you have forgotten your password, you can

reset it on the website. Simply click on the ‘forgot password’ option on the login page.

• If you are still having trouble, please contact your accounts service manager or the customer support team via email or live chat.

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PARTNER WITH USCustomer Support

Refer-a-Friend

Forex Affiliates

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Forex Affiliates• The easy-forex partner programme – Forex Affiliates is one of the longest

running and most successful financial affiliate programmes worldwide. Since 2003 we’ve paid out millions of dollars in commissions to our Online Affiliates and Introducing Brokers for bringing clients to trade currencies, commodities, indices and options with us.

• For more information contact us by email or visit our website www.forex-affiliate.com.

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Dedicated Customer Support• Our dedicated multilingual customer support team is here

to help with any questions you might have.

• You can email us at [email protected] call usat +357 25 828899 or visit us on Live Chat.

• Our live chat is available from Sunday 00:00 GMT to Friday 16:00 GMT.

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Thank you

easy-forex® endorses responsible and moderate trading. Risk warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. The information provided can under no circumstances be considered as a recommendation to engage in any trade.  Please note that the information and content provided in our workshops and/or seminars is made available for informative and educational purposes only and can under no circumstances be considered as a recommendation to you by easy-forex or any easy-forex personnel to engage in any trade.  Hence, neither easy-forex nor any of its personnel can under any circumstances be held responsible for any outcome of trading decisions or trades in regard to any of these workshops and/or seminars.

Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission - (CySEC - License Number 079/07), (which has been passported in the European Union through the MiFID Directive), and in Australia by ASIC (AFS license No. 246566).