Scribd Logo
Upload

Welcome to Scribd!

  • 31 views

    Wa0112.

    Uploaded by

    ali ali
    Trading involves exchanging one item for another, such as currencies, stocks, commodities. Forex or foreign exchange trading specifically refers to exchanging one currency for another on global forex markets. These markets are decentralized and operate 24 hours a day. Major currencies that are traded include the US dollar, euro, British pound, Japanese yen, and others. Currency pairs indicate the currencies being exchanged. Major pairs involve currencies like the euro, dollar, pound and yen. Forex trading volume averages over $7 trillion daily, making it one of the largest global markets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Wa0112.

    Uploaded by

    ali ali
    31 views10 pages
    Trading involves exchanging one item for another, such as currencies, stocks, commodities. Forex or foreign exchange trading specifically refers to exchanging one currency for another on global forex markets. These markets are decentralized and operate 24 hours a day. Major currencies that are traded include the US dollar, euro, British pound, Japanese yen, and others. Currency pairs indicate the currencies being exchanged. Major pairs involve currencies like the euro, dollar, pound and yen. Forex trading volume averages over $7 trillion daily, making it one of the largest global markets.

    Original Title

    DOC-20221115-WA0112. (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Trading involves exchanging one item for another, such as currencies, stocks, commodities. Forex or foreign exchange trading specifically refers to exchanging one currency for another on global forex markets. These markets are decentralized and operate 24 hours a day. Major currencies that are traded include the US dollar, euro, British pound, Japanese yen, and others. Currency pairs indicate the currencies being exchanged. Major pairs involve currencies like the euro, dollar, pound and yen. Forex trading volume averages over $7 trillion daily, making it one of the largest global markets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views10 pages

    Wa0112.

    Uploaded by

    ali ali
    Trading involves exchanging one item for another, such as currencies, stocks, commodities. Forex or foreign exchange trading specifically refers to exchanging one currency for another on global forex markets. These markets are decentralized and operate 24 hours a day. Major currencies that are traded include the US dollar, euro, British pound, Japanese yen, and others. Currency pairs indicate the currencies being exchanged. Major pairs involve currencies like the euro, dollar, pound and yen. Forex trading volume averages over $7 trillion daily, making it one of the largest global markets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    Introduction

    What is trading?
    Exchange of one item with some other item is called trading
    Examples:
    1. Exchange of 1kg apple with 200 PKR (Apple/PKR)
    2. Exchange of 12g Gold with 1 lac PKR (Gold/PKR)
    3. Exchange of 1 Dollar with 180 PKR (USD/PKR)
    Introduction of Forex?
    ➢Forex or FX is short form of Foreign Exchange. It is the trading of one
    currency for another.
    ➢For example, one can exchange the U.S. dollar for the euro. Foreign
    exchange transactions can take place on the foreign exchange market,
    also known as the forex market.
    ➢Forex trading is done in pairs, such as EUR/USD (euro/U.S. dollar) or
    JPY/GBP (Japanese yen/British pound). When you make a forex
    trade, you sell one currency and buy another.
    ➢This Global Trading Market is worth US$ 1,934,500,000,000 (i.e. US$
    1.9 quadrillion). It is 2.5X larger than the global GDP.
    ➢Market is run by a global network of Exchanges and banks, spread
    across four major forex trading centers in different time zones:
    London, New York, Sydney and Tokyo. Because there is no central
    location, you can trade forex 23 hours a day.
    ➢Forex is a part of this Industry with an average daily volume of more
    than US$ 7 trillion.
    Types Of Trading Items
    ▪ Currencies
    • Euro, Dollar, Pound etc.
    ▪ Stocks (Shares of a company)
    • Apple, Facebook etc.
    ▪ Indices (Shares of group of companies)
    • NASDAQ 100 etc.
    ▪ Commodities
    • Gold, Silver, Crude Oil, Gas etc.
    Trading Pattern
    Exchanges
    Central banks
    Commercial banks
    Liquidity provider
    Broker
    Retail traders
    Types of traders
    1. Big banks
    • Determine the exchange rates
    • Set bid/ask price brokers pay
    2. Big companies
    • Exchange local currency into foreign currency to do business on global base
    3. Governments/central banks
    • Central banks can cause fluctuations in the market
    4. Speculators
    • Execute almost 90% of all trades
    Major Currencies
    Currency Nick Name Dealing Central Banks
    USD (United States Dollar) Buck FED (Federal Reserve Bank of
    America)
    EUR (Euro) Fiber ECB (European Central Bank)
    GBP (Great Britain Pound) Cable BOE (Bank of England)
    JPY (Japanese Yen) Yen BOJ (Bank of Japan)
    CHF (Swiss Franc) Swissy SNB (Swiss National Bank)
    AUD (Australian Dollar) Aussie RBA (Reserve Bank of Australia)
    NZD (New Zealand Dollar) Kiwi RBNZ (Reserve Bank of New
    Zealand)
    CAD (Canadian Dollar) Loonie BOC (Bank of Canada)
    Types Of Currency Pairs
    1. Major currency pairs
    Pairs Trader Terms
    EUR/USD Euro/Dollar
    GBP/USD Pound/Dollar
    NZD/USD Kiwi/Dollar
    AUD/USD Aussie/Dollar
    USD/JPY Dollar/Yen
    USD/CAD Dollar/Loonie
    USD/CHF Dollar/Swissy
    Types Of Currency Pairs
    2. Minor/cross currency pairs
    • EUR,GBP,JPY/non USD currency
    3. Exotic currency pairs
    Major currency/Emerging currency
    USD/ZAR, USD/SGD
    Major Commodities, Indices & Stocks:
    1- XAU/USD (Gold) 2- XAG/USD (Sliver)
    3- WTI or XTI/USD (Crude Oil) 4- US30
    5- NASDAQ 6- S&P 500

    You might also like