Forex Tutorial For Beginners For Free and Complet Cours



Welcome guys in my free Course about forex beginners, this cours  for free in vipfxsignal.

Before you start, take a cup of coffee, a paper and a pen, and then read carefully and on a line of important things.

I will give you a summary of a long experience and you will not find this for free elsewhere, where the value of this talk hundreds of dollars

Where I will provide you with all the fundamentals and practical terms in the Forex market in a simplified and quick understanding.

All the contents of the book is the educational content of the Forex market and the practical aspect and fundamentals that will not need to search anywhere after.

 

 

WHAT IS THE CURRENCY MARKET?

 

Currencies: The main component of any investment activity, which is the mirror of the economy of the country.

The currency market: A financial market in which foreign exchanging currency.

Currency Market: The largest liquidity market in the world and one of the strongest and most stable financial markets.

The daily liquidity of the market reaches more than $ 5 trillion a day.

The huge liquidity of the market is due to the presence of central banks, major investment banks and large financial institutions.

The technological development, the Internet and the modern means of communication have helped the spread of the currency market and the entry of a larger segment of its traders.

 

The currency market: a market that is decentralized and has no specific geographical boundaries and trades through OTC or Over The Counter networks.

This has added two strong advantages to the currency market:

First: Trading throughout the day is available 5/24 days a week without interruption. Trading begins during the first hour of Monday to close at the last hour of Friday.

The market stops working on Saturday and Sunday as the weekend

The second feature is the ability to trade from anywhere around the world as long as you are connected to the Internet using a special trading software on your PC or mobile phone.

But there are other features such as:

 

– The possibility of trading in relatively small accounts due to the use of financial levers in addition to the amount of investment.

– Transparency and stability The huge liquidity of the currency market prevented any category of manipulation of exchange rates.

– The possibility of profit in both directions Ascending and down depending on your buying and selling decisions.

FOREX BROKER?

Forex brokers are firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. A currency tradingbroker, also known as a retail forex broker, or forex broker, handles a very small portion of the volume of the overall foreign exchange market.

Read Also: How To Open Xm Forex Account ? And Why Xm Is The Best Broker?

FEATURES AND CHARACTERISTICS OF THE CURRENCY MARKET

 

To simplify the matter, we will try to compare these advantages to the stock market.

FIRST: LIQUIDITY AND TRADING VOLUMES:

The Forex market is the largest and most liquid financial markets where the value of daily liquidity to five trillion dollars.

While in the world’s largest stock exchanges:

The New York Stock Exchange average volume is only $ 45 billion.

SECOND: FINANCIAL LEVERS AND FACILITIES:

Financial levers are facilities provided by banks and brokerage firms to the client to be able to trade the actual capital fold, in the currency market, the amount of these levers hundred times and sometimes four hundred times the capital.

These figures are not available in the stock markets. The financial leverage used is often in the range of 3 to 5 times. This feature enables you to trade and use simple amounts in the Forex market compared to the stock market.

 

THIRD: EASY TO FOLLOW THE MARKET:

The number of famous and traded currency pairs is very limited, making it easy to follow up on all of these pairs and it is enough to follow and focus on one or two couples only to make profits from it in part time

On the contrary, if we look at the stock market, we find that the number of companies listed on the stock exchange is too many to be difficult to filter and analyze and determine the feasibility of trading on any of them, which requires time and effort in the analysis and follow-up.

 

FOURTH: TRANSPARENCY AND DIFFICULTY OF MANIPULATION:

The Forex market is transparent and easy to access as data is available to all and in known times because it is related to the economies of countries.

While stock market data may be available to people without others, which may be a reason for manipulating share prices.

 

FIFTH: MARKET WORKING TIMES:

Trading in the currency market is done 24 hours a day and you can execute your transactions at any time.

Stock markets are trading sessions with a specific opening and closing date. Transactions can only be executed during the trading session.

 

SIXTH: PROFIT IN BOTH DIRECTIONS:

In the currency market you can trade in both directions, both up and down, you can open a buy or sell position as easily without any restrictions or conditions and make a profit in both.

In some stock markets, profit is only a gain and a drop means losing because you have to buy the stock at a discount and then sell it at a higher price to make profits.

SEVENTH: SPEED OF IMPLEMENTATION:

The execution of buying and selling transactions in the currency market is not fast but rather momentary, at the same moment the pressure on the order in the trading program for the availability of liquidity in the market.

The execution of operations in the stock market depends on the liquidity of the market and the availability of orders and offers at the required price.

These are the most important features that have helped the spread of the currency market and attracted many traders and investors all over the world.

 

CURRENCY MARKET TIMES?

 

We mentioned in previous lessons that the advantages of the currency market:

It operates OTC, meaning it works 24 hours a day, 5 days a week without interruption from Monday to Friday.

The market stops on Saturday and Sunday as the weekend.

The trading day is divided into several periods known as market periods.

 

-Australian trading starts in Sydney from 10 pm to 7 am GMT.

-It overlaps with the Asian period in Tokyo, which runs from midnight to 9 am GMT

-Followed by the European period in London, which is considered the highest trading period and liquidity in the currency market, and extends the European period from 8 am to 5 pm GMT.

-And finally the US period, the second highest liquid market period from 1 pm to 10 pm GMT.

-We note the overlap between the European and American periods between 1 pm and 4 pm GMT.

-The overlap period is the highest liquidity in the market

 

HOW DOES THE CURRENCY MARKET WORK?

 

Currency Market: A global financial market that is decentralized. It includes an electronic network of banks called INTERBANK.

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Which includes more than 2000 of the world’s largest banks, which trade currencies 24 hours a day.

 

These banks provide offers and applications through the Internet and implement them.

 

TYPES OF TRADERS IN CURRENCY MARKETS? WHAT ARE THEIR PURPOSES?

Interbank customers are divided into two parts:

forex tutorial

Section 1: Customers who trade in the market for speculative purposes,

ie, with the objective of making profits from the rapid movement of currency exchange rates in the market.

These accounts for 91% of the total market volume.

 

 

Section II: Clients who trade in the market for other purposes such as:

Obtain the same currencies for travel or foreign trade, and do not care about price changes or how to profit from them.

This category accounts for only 9% of the market

 

WHAT CURRENCIES ARE TRADED IN THE FOREX MARKET?

All currencies of the world are traded in the currency market and are divided into two parts:

  1. Major currencies.
  2. Secondary coins.

FIRST: MAJOR CURRENCIES: THE MOST POWERFUL AND MOST TRADED AMONG THE CURRENCIES OF THE WORLD.

 

They are five currencies as follows:

  1. U.S. dollar USD
  2. Euro EUR
  3. British Pound GBP
  4. Japanese Yen JPY
  5. Swiss Franc CHF

SECOND: SECONDARY CURRENCIES:

  1. Canadian dollar CAD
  2. Australian Dollar AUD
  3. New Zealand Dollar NZD

What interests us as traders in the Forex market is the eight previous currencies because they are the most traded in the market so they call them MAJOR 8.

HOW ARE CURRENCY ABBREVIATIONS NAMED?

 

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The International Organization for Standardization and Measurement (ISO) has developed a method for naming currencies where each currency is symbolized by a three-letter code.

 

The first and second names usually express the name of the country and the third letter of the currency name with some exceptions.

 

Let’s set an example:

USD is the abbreviation for United States Dollar, and the same applies to the Swiss franc CHF, which is the abbreviation of the Swiss translation of the Swiss Confoederatio Helvetica Franc

 

THE SYSTEM OF COUPLES IN THE CURRENCY MARKET

 

Currencies are traded in the pairs system: buying a currency against another or vice versa

The marital system is very similar to the old commodity exchange system, and since we are talking about a system of pairs, this means that we have two opposite currencies.

The first currency: called the base currency.

The second currency is called the opposite currency.

Buying and selling is done when the exchange rate is called.

For example:

The US Dollar is the base currency and the Japanese Yen is the opposite currency and is traded at the market rate set to assume that it is 110,952.

This means to get one dollar should pay 110,952 JPY.

Currency pairs are divided into three sections:

SECTION 1: MAJOR

The pairs in which the US dollar is a party and the second currency a major currency

CHF / USD – JPY / USD – USD / GBP – USD / EUR)

SECTION 2: MINORS

Which are the pairs that the US dollar is a party and the second currency one of the secondary currencies the most famous: (USD/NZD – USD/AUD – CAD/USD)

SECTION 3: CROSSES

They are the pairs that do not contain the US dollar example:

(JPY / GBP – CHF / NZD – CAD / AUD)

 

THE CONCEPT OF THE POINT IN THE CURRENCY MARKET

 

Point: is the smallest standard for measuring exchange rate movements in currency pairs

PIP is the abbreviation of the word “Percentage In Point”

The point represents the fourth decimal number 0.00001 In currency pairs

Except for pairs that contain:

Japanese Yen, Gold, Silver, Oil, and Gas

The second decimal number is 0.01

When the pair moves EURUSD

From 1.0420 to 1.0569

This means that the pair has moved up three basis points

The same example applies to:

JPY, gold, silver, oil and gas

Take the USDJPY against as an example

Let’s assume that the dollar exchange rate is ¥ 115.75. If the exchange rate moves 4 points upwards, then the price will be 115.79

Alert! Trading platforms currently offer 5-digit exchange rates for currency pairs and 3 decimal places for Japanese yen, gold, silver, oil and gas pairs.

The additional number is a decimal part of the point such as

EURUSD = 1.07481

 

PURCHASE PRICE, SELLING PRICE AND SPREAD

 

Each currency pair has two exchange rates, which are traded on the basis of the purchase price and the selling price.

The purchase price is also called the Ask price, which is the price at which you buy.

The sale price is also called bid price, which is the price at which you sell

and for example: GBPUSD

Ask price: 1.3362                                                                                     Bid Price: 1.3353

 

Note: that the price of the request exceeds the price of the offer by a small amount, which we call the price difference SPREAD.

Price difference: The profit margin obtained by the party executing the transaction, whether it is a brokerage company or bank or exchange office.

Therefore, the spread of the price is the difference between the prices of supply and demand of the currency pair and we must know that each pair of currency pairs different price differentials from other pairs, the reason for differences in price differentials of currency pairs due to the real volumes in the forex market on these pairs, for example:

We find that the EURUSD is the lowest pair in terms of the price differential due to the high trading volume on this pair.

The price differential for the Euro-Dollar pair varies from broker to broker.
Therefore, the price difference is a competitive point between the broker firms, and it is necessary to know the price differences provided by the broke company before dealing with them.

As we are talking about brokerage firms, we must mention that
brokerage firms offer price differentials on two types:

Type 1: FIXED SPEARDS:

The broker is obliged to display the spreads consistently in all trading periods. The exchange rates in this type are usually 4 decimal digits for nonyen pairs, and two decimal places for yen pairs.
for example:

EURUSD Ask :1.1443   Bid: 1.1441   Spread : 2 pips

Type 2 : VARIABLE SPREADS:

Where price differentials vary depending on the volume of liquidity and market conditions; this means that spreads may widen in some market periods and may shrink in other periods. These companies typically offer 5 number currency exchange rates for non-yen pairs, and three decimal places for yen pairs.
for example:
EURUSD   Ask:1,14413    Bid:1,14417     Spread : 0.04 pips

Read Also : Start Copy Vip Signals Forex In Telegram For Free

THE SYSTEM OF COUPLES IN THE CURRENCY MARKET

 

Currencies are traded in the pairs system: buying a currency against another or vice versa

The marital system is very similar to the old commodity exchange system, and since we are talking about a system of pairs, this means that we have two opposite currencies.

The first currency: called the base currency.
The second currency : called the opposite currency.
Buying and selling is done when the exchange rate is called

For example:
The US Dollar is the base currency and the Japanese Yen is the opposite currency and is traded at the market rate set to assume that it is 110,952.
This means to get one dollar should pay 110,952 JPY.

Currency pairs are divided into three sections:

SECTION 1: MAJOR

The pairs in which the US dollar is a party
and the second currency a major currency
USDCHF / USDJPY / EURUSD / GBPUSD)

SECTION 2: MINORS

Which are the pairs that the US dollar is a
party and the second currency one of the
secondary currencies the most famous:
(NZDUSD – AUDUSD / USDCAD )

SECTION 3: CROSSES

They are the pairs that do not contain the US
dollar example: (JPY/GBP – CHF/NZD –
CAD/AUD).

 

TRADING CONTRACTS IN THE CURRENCY MARKET (LOTS)

 

The currency market takes place in specific quantities and sizes using standard units called Lot contracts.

Trading contracts in the currency market are divided into 3 sizes:

  1. STANDARD LOT: Appears in trading programs 1,00  And is equal to 100000 units of the foundation.
  2. Mini Lot: It also shows 0.1 and is equal to 10000 units from the base.
  3. Micro LOT: The format shows 0.01 and equals a 1000 unit of base currency.

Trading contracts are exactly like the amount of stock you want to buy in a company.

CALCULATE THE VALUE OF THE POINT AND THE PROFIT AND LOSS ACCOUNT

Prices move in the currency market based on the change in the sizes of supply and demand After opening a deal to buy or sell you will notice the movement of the point counter in the trading program up and down.

I explained in a detailed article on how to calculate points: you can see them here : How To Convert Point (Pip) In Dollar And Calculate?

 

THE CONCEPT OF LEVERAGE AND ITS SIZES

 

There are different types of orders to execute transactions in the market and these orders can be divided into two types:

TYPE 1: INSTANT TRADING ORDERS:

trading at the current market price called Market Order and execute these orders directly at the current market price or the best market price available for trading.

Example:

 

– Buy at the current market price BUY to enter a new purchase deal.

– Sell at current selling price SELL to enter a new sale deal.

– Close the buy or sell at the current market price CLOSE which is the reverse process of the original deal buy or sell out of the current deal.

 

THE SECOND TYPE OF ORDERS: PENDING TRADING ORDERS:

 They are specified at a certain price and are executed when the price reaches the point specified by the trader.

The outstanding trading orders are divided into two parts:

Section I: Orders to enter into a new transaction:

– BUY STOP order.

– BUY LIMIT order.

– SELL LIMIT order.

– STELL STOP ORDER.

Section II: Orders to exit the current deal:

– The TAKE PROFIT.

– STOP LOSS.

We will explain in detail the pending orders to enter into a new trade.

– BUY STOP: It is a pending order to execute a purchase at a price higher than the current price, and this is usually used when checking the price break of a resistance and then enter a price higher than.

Let’s set a default example:

If the current price of the EURUSD is 1,1130 and you would expect the price to rise if the price breaks to resistance at 1,1150, the kind of order you would put to buy a price higher than the current price is BUY STOP and assume that at 1,1165

– BUY LIMIT order: It is pending to execute the purchase at a price lower than the current price of the market, and is used to enter purchases at a price better than the current price.

Often entering ahead of strong support levels.

Let us give an example:

Suppose that the current price of EURUSD is  1,1177 and the price action is confined within a bullish channel and you want to enter the ascending trend line of the channel at a price that is better than the current price.

You can place a buy order at 1.1140 which is the limit of the ascending channel.

– SELL LIMIT order: This is a sell order at a price higher than the current market price.

This is used to enter a price better than the current price, often under a strong resistance level, which means that you expect the price to extend from the resistance level down.

– SELL STOP: To execute a sale at a price lower than the current price of the market as opposed to the SELL LIMIT order, this order is used to enter the sale when breaking the strong support levels and enter the price below the current market price.

Alert! Many trading platforms are using only two pending transactions:

buy Order and sell Order.

“The program automatically determines the order type at the current market price.”

  SECOND2:  PENDING ORDERS SECTIONS IS THE EXIT ORDERS FROM THE CURRENT TRADE:

 

TAKE PROFIT order: This is used to determine a specific price at which the transaction is automatically closed and the profits realized.

STOP LOSS order: is used to determine a specific price at which the transaction is automatically closed and only losses are realized.

 

Read Also : Forex Sick 3 Ways Risk Management Makes You Win

 

TRAILING STOP LOSS

 

TRAILING STOP is different from STOP LOSS as it moves automatically when the price moves a certain number of pips in the direction of your transaction to secure the deal and reserve its profits in anticipation of a reversal of the price in the opposite direction of the transaction

 

forex tutorial

Trailing stop loss order is very useful in risk management for trades as it allows you to book the profits realized each time the price moves in your favor and does not set a profit-taking point; therefore, it allows you to continue the transaction as long as it is in your favor.

 

In addition, it establishes a moratorium on the loss of such realized profits. So the price movement towards your deal is open points.  The price action against your deal is specific.

Let’s take an example:

If you open a USDJPY buy from 105.50 with a 107.00 loss and a stop loss of 50 pips it means that if the price rises to 106.00 the stop will move from 105 to 105.50 At the point of entry

 

. If the price continues to rise to reach the level of 106.50  stop loss will move to 106 levels, which means that if the stop loss is activated, you will win from the deal 50 points.

forex tutorial

 

Finally, I hope you will benefit from this course, do not forget to share this article with your friends, do not hesitate to comment on anything you want to clean or Oujda difficulty in understanding.

Thanks

Read Also :

Start Copy Vip Signals Forex In Telegram For Free

How To Open Xm Forex Account ? And Why Xm Is The Best Broker?



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