Personal Computer (PC) and fast internet connection with reliable source of power are required to get
started with what you are going to learning during the 60 days training programme! You can also set
aside $200 minimum for LIVE trading as to really understand how the live market is. Feel and
experience it happening live! Even if you have more than that to open a live account, we advise you to
start small, grow and think big.
You can not dispute mentorship along this financial trading route for this is one of the drivers that
sustain professional and successful investors, and that is why we are keen to giving you the best and
required unlimited mentorship and resources.
Why do I need to trade FX?
There are lots of opportunities in trading the FX market that could launch you into fortune in life. I’m
going to open your eyes to some undisclosed benefits that could fatten your bank accounts with what
you will be expose to in http://www.forexinstituteng.com. To mention few for now, the followings are
what you could benefits in the FX market.
a. Knowledge: There is a popular saying that “knowledge is power” Meanwhile, you would
acquire one of the most valuable knowledge available in the financial world while trading the Forex
market. Infact, take it serious as a career. The Forex market exposes dedicated and committed students
of the school of knowledge to unquantifiable exploits coupled with the power of information for
transformation.
b. Superior Liquidity: Remember I have mentioned this earlier “According to the Bank of
International Settlements; the daily volume is almost $4 trillion while approximately $1 trillion is done
in the SPOT FOREX transactions. Therefore, it is estimated that retail trading makes up $55 - $60
billion in daily global transactions”
Liquidity in this case is also the ability to convert easily and with minimum loss in CASH. The Forex
market is so liquid that there are always buyers and sellers in the market. Meanwhile, the liquidity
comes mainly from banks that provide liquidity to investors, companies, institutions and other
currencies market players.
c. All Day Trading: One of the major advantages of trading the Forex is the opportunity of
trading 24 hours daily from Sunday evening / Monday midnight to Friday evening (22:00 GMT). This
will also give room for working class people to determine when to trade with ease base on their
schedule. Traveling from one country to another is not necessarily required, you can trade from the
comfort of your home or office or anywhere in the world through the internet.
d. Commission FREE: The beauty of trading the Forex market is the fact that it’s traded
without commission which makes FX more attractive. Although, you will be charged what is called
SPREAD – This is the difference between the Bid and Ask prices of a currency. More about the
meaning of Bid and Ask prices will be treated in the next lesson. However, both traders and brokers
enjoy FX business.
e. Leverage: In Forex market, you could deposit small amount of capital and control larger
contract value of any chosen currency pairs. Leverage simply means loan; as a trader, you have access
to the loan immediately you register and fund your live account. Leverage gives trader the ability to
make good profits, and also keep risk capital to a minimum. But leverage could also be a double-edged
sword when good risk management is not considered; this could lead to huge losses.
Leverage ratio ranges from 100:1, 200:1, and 300:1 etc. But presently, the Commodity Futures Trading
Commission (CFTC) is proposing a new rule on the Leverage across the Forex market; to set maximum
Leverage to 10:1 for retail FX traders in the United States of America. If this rule is effected, it may
affect lots of new traders.
f. Practice Account: It is mandatory for all brokerage firms to offer DEMO account on their
platform for practice trading. With the demo account, traders especially beginners, can develop, build
and perfect their trading skills with virtual money before committing your real money into the FX
market.
g. Online Accessibility: One of the benefits of trading the Forex market is the invention of
the internet connection. It’s made easy trading on FX platforms with the use of internet accessibility
from anywhere in the world.
More benefits will be exposed by the time you are fully trading live…
UNDERSTANDING THE FOREX MARKET MECHANICS & TERMINOLOGY
Forex trading is sincerely putting your thoughts or convictions about a price movement into action by
entering an order and placing money at risk. Trading or the purpose of trading is to turn over or buy and
sell to build cash in an account by capitalizing on changes in price. It’s not about acquiring and holding
assets or properties. The principle of trading is a very simple concept although we tends to make it
quite complicated, especially those who have a hard time comprehending selling short and otherwise.
Therefore, financial trading is a matter of interested parties coming together and speculating whether
the price of a specific commodity will go up or down. Simple!
Basic and Important Terminologies
Every industry has its own unique language. And the same thing happens in the FOREX market. You,
the novice trader, must thoroughly understand some terms before you start trading. Generally, there are
some terms that you must know as a Trader.
Currency Pairs
FOREX trading involves the simultaneous buying of one currency and the selling of another currency.
These two currencies are always referred to as the currency pair in a trade. E.g. GBPUSD is a pair. And
if Nigeria currency is fortunate to be listed in the Forex market, then we should have something like
this USDNGN…
Bid Price
The bid is the price at which the market is prepared to buy a specific currency pair in the FOREX
market.
Ask Price
The ask is the price at which the market is prepared to sell a specific currency pair in the FOREX
market. At this price, the trader can buy the base currency
Bid/Ask Spread
The spread is the difference between the BID and ASK price. The “big figure quote” is the dealer
expression referring to the first few digits of an exchange rate. These digits are often omitted in dealer
quotes. And it is the dealer’s commission – undisclosed!
Volume/Lot Size/Contract Value
This is the number of purchases or sales of a contract during a specified period of time. It’s simply
refers to as Unit in the stock market. The section contribute a lot to the risk of trading the Forex market.
Major and Minor Currencies
There are seven most frequently traded currencies: (USD, EUR, JPY, GBP, CHF, CAD, and AUD) and
they are called the major currencies. All other currencies are referred to as minor currencies. The most
frequently traded minors are the New Zealand dollar (NZD), the South African rand (ZAR), and the
Singapore dollar (SGD). Therefore, we could have more as more countries are quoted in the Forex
market according to their agreement in the international market.