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THINK BIG. TRADE FOREX

FOREX MARKET:x

THE 10 IDEAS

BEHIND FOREX TRADING

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FOREX MARKET:The 10 IDEAS Behind Forex Trading

Risk Warning
Foreign exchange is highly speculative and complex in nature, and may not
be suitable for all investors. Forex trading may result to substantial gain orloss. Therefore, it is not advisable to invest money you cannot afford to lose.
Before using the services offered by ForexMart, please acknowledge and understand the risks relative to forex trading. Seek financial advice, if necessaryx ForexMart
THINK BIG. TRADE FOREXx

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FOREX MARKET:

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The 10 IDEAS Behind Forex Trading

ForexMart,$EQUIPPING FUTURE
CURRENCY TRADERS!

€Let ForexMart help you unlock boundless opportunities in the complex forex
market. This easy-to-learn manual will teach you all the things you need to learn
in the world’s most liquid financial market.

FOREX

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THEMARKET:WHAT ISFOREIGN EXCHANGE?

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EASX TRFOREIGN EXCHANGE is the global marketplace for buying and selling currencies,ADIforeNGxmart.com

which operates 24 hours a day and five days a week.
Also called FOREX, it is the world’s largest and most liquid market, with morethan $4 trillion daily trading volume.

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FOREX MARKET:04

The 10 IDEAS Behind Forex Trading

WHY FOREX?

HOW TOTRADE FOREX?

Let ForexMart count the ways:
An investor can trade currencies 24 hours a day. So, he can trade instantly
at his most convenient time.

€Economic data and news items encompassing the market are available toeveryone.
Being a decentralized market, the forex market is not governed any single
country group or institution.
You can trade at any time, regardless of the market’s overall direction.
Also, you can take advantage of the current market situations, dependingon which currencies are on the up and down.

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BASE CURRENCY

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EUR/USD SECONDARY CURRENCY(Point of reference: A news report about the likelihood of the European Central Bank to increase interestrates.)

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For discussion purposes, we will use the EUR/USD. The first currency (in this example, the euro) is the base currency, while the other one (the US dollar) is thesecondary currency. The cost of selling the base currency is known as the bidprice, while the cost for purchasing the base currency is the ask price. A trader
can either sell the base currency or buy the base currency.

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€$Currencies are traded in pairs; meaning traders
are buying and selling a pair of currencies simultaneously. In simplest terms, it is the same withexchanging a particular currency for another.

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Option 1: Bid - Sell the base currency
If you think the value of the euro is likely to plunge against the US dollar, withthe latter increasing in value because of prospective ECB rate decision, then youwill sell. When selling this currency pair, you are selling the euro and purchasing
the US dollar at the same time.

EURUSD

BID
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FOREX MARKET:06

The 10 IDEAS Behind Forex TradingOption 2: Ask - Buy the base currency
If you stipulate the value of the euro is likely to increase relative to the US dollar,
supposing the ECB won’t raise rates, then you will buy. When you ask EUR/USD,
you are purchasing the euro and selling the US dollar at the same time.

EUR

USD

WHAT IS LOT?
In finance, lot represents the standardized quantity of a financial instrument set
by an exchange or other regulatory body. One lot is equivalent to 100,000 unitsof the base currency.

ASK

HOW CAN I

WHAT IS PIP?
Pip is the smallest measure of a currency, which is the last number after thedecimal point. Traders use pips to monitor their wins and losses in the market.
Most major currency pairs are priced to four decimal places.
Referring to the example above, let us presume the EUR/USD currency pair isquoted at 1.1312. Hence, the euro is at $1.13. Now, let’s say the currency moves
up by two, from 1.1312 to 1.1314. Therefore, the euro’s value rises by two pips.

1.1312

1.1314MINIMIZE THE
RISK WHILE
TRADING?

RISK

We are proud to say ForexMart has equipped our clients with distinct tools tohelp them reduce their risk when trading. Aside from that, traders should takenote of the following:

up by two pips

WHAT IS LEVERAGE?
Leverage is the usage of borrowed capital to bolster an investment’s potential
return. ForexMart offers various leverage options to start trading in a safe, responsible manner with lower risk.

STOP LOSS ORDER

Take Profit Order

This feature enables you to set inadvance the maximum you arewilling to risk. So once the tradedcurrency goes below the threshold, this order will automaticallyclose the trade.

The measure allows you to lock inyour profits and close your trade
once the market reaches a pre-determined goal, and the rate remains high. Although it limits theprofit you can gain, this will protect you from any sudden plungein the currency’s price.
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FOREX MARKET:

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THE 10 IDEAS BEHIND FOREX TRADING

WHERE CAN I LEARN

MORE DETAILS ABOUT FOREX?

HOW TOOPEN A TRADING ACCOUNT?
Visit the ForexMart homepage at www.forexmart.com.

€SEMINARS / CRASH COURSESFINANCIAL ADVISORS$E-BOOKSWEBINARS / VIDEO TUTORIALSVISIT ForexMart’s FAQ or Forex Glossary

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WHY TRADE WITH FOREXMART?
ForexMart complies with regulations set by diﬀerent countries acrossthe globe. Our commitment to following the industry's best. practices
and meeting the needs of the customer keeps us at the leading edge inour ﬁeld.

WWW.FORExMART.COM

We provide our clients with the world-class trading platform.
Our customer support team is available 24 hours a day and ﬁve days aweek to assist you in trading-related matters wherever you are.
We have no dealing execution, ensuring competitive and transparent
pricing. Also, we process trades at the soonest possible time.

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x ForexMart
THINK BIG. TRADE FOREXx

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