The Forex Market

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The Forex Market

• By Alex Nekritin
• CEO, Traders Choice FX

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What is Forex

• The Forex Market allows the end user to speculate
  on the movements of various currency pairs.
• The Forex market is the largest market in the
  world.
• The average daily trading volume is over 2
  trillion USD.
• Participants include banks, commercial
  companies, central banks, investment management
  firms, hedge funds, retail Forex brokers.
• Until the late 90s only big players could trade
  Forex with a minimum investment of 10 million.
  Now, Forex is available to retail traders with as
  little as a 500 investment.
• Through the development of retail Forex brokers,
  retail spot FX now makes up over 10 of the FX
  market.
• OTC -- No Centralized exchange.

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What is Retail FX and why is it so popular?

• Low barriers to entry
• Start trading with as little as 500 USD
• Commonly used instrument
• Currencies of different nations (i.e. EUR, USD,
  GBP, JPY, etc.)
• High leverage in FX allows control over large
  sums of money with just a small investment.
• Easy to learn and become educated.
• User friendly trading platforms.
• 24 hour market, 6 days per week.
• Demo trading accounts available to better
  understand how to trade.
• Many ways to take advantage of market.
• News Trading
• Carry Trading
• Scalping
• Auto-trading
• Commission Free Trading
• All you need is a fast internet connection and
  500 to trade.
• Ability to trade in rising and falling markets.
  No bull No bear.

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How the FX Market works?

• Currencies are traded in pairs. Technically, you
  are borrowing money with the bottom currency to
  buy the top currency.
• For example EUR/USD. You are borrowing USD to buy
  EUR.
• SWAP Rates allow you to collect/pay interest
  based on your position.
• A retail trader is typically leveraged 1001
• Prices are quoted to the fourth decimal point in
  the Forex market called a PIP -- Percentage in
  Point.
• Trades occur in lots One standard lot equals
  100,000 making one PIP on 100K the equivalent
  of 10.
• 1000 to trade 1 standard lot equivalent to 100k.

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Examples of Forex Quotes
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What moves the market?

• All factors work with each other not one is a
  stand alone factor.
• Interest Rates
• Interest rates have an impact on the value of a
  countrys currency.
• Economic Growth
• A countrys economic state plays a role in
  currency value.
• Geo-Politics
• People want to keep money in safer/stable
  countries.
• Trade and Capital Flows
• Import/export. Trade balance effects currency
  price.
• Merger and Acquisition Activity

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Example of Forex ChartsInterest Rates GBP/JPY
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Example of economic growth affect on chart --
EUR/USD
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How to predict currency price movements?

• Fundamental Analysis Analyzing the market based
  on economical fundamentals (those that affect
  economies of countries)
• Technical Analysis Analyzing the market based on
  past price movements and chart patterns.
• Quantitative Analysis Analyzing the market based
  on statistical techniques

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Ways to trade Forex.

• News trading
• Taking advantage of currency movements during
  economic news releases.
• Discretionary trading
• Technical
• Fundamental
• Automated systems
• Trading robots that execute trades on behalf of
  the client without client intervention.
• These robots can be built, purchased or acquired
  by the trader.

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Example of price movement during ISM Release
3/1/06 The ISM Manufacturing came out higher
than expected which strengthened the US Dollar
causing the GBP/USD to fall at 10 am eastern
time.Within 10 minutes the market moved over 35
pips.
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Popular Trends in the Industry

• Charting and Daily Webinars.
• Allow groups to trade together.
• Software allows traders to spot potentially
  successful patterns on the trading platform and
  charts.
• Automated Trading
• Trade without sitting in front of your computer.
• Remove all emotions.
• Trade transparency advantage.
• Robots always executing trades on clients behalf
• Programming Automated Systems
• Automated Packages
• Opportunity to select fully integrated automated
  systems from best developers in the world.

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Automated trading platform available through TCFX
allows trader to choose from over 50 trading
robots from the worlds best traders.Imagine
having systems of the best gamblers in the world
playing for you.
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Business opportunity

• Trading volume revenue
• Referring Party
• What to expect
• Regulations and location
• Product affiliate marketing
• Quality of products (what to market?)
• Duration of clients
• Client ownership
• Informational source
• Advertising revenue
• Building your list
• The idea is to develop multiple revenue streams
  both volume and product based.

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General direction of the Retail Spot FX Market.

• Consolidation
• Need proper positioning
• Centralization
• Retail FX Growth
• Youth of the industry
• Regulation
• Your location
• SEC/NFA
• Automation
• More and more automated systems available.
• Superior charting packages
• Trading platforms have easy automation
  capabilities.

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What is TCFX how does it benefit you?

• Difference between Forex affiliate marketing and
  casino affiliate marketing
• Regulation.
• Hands on support for traders.
• Introducing Broker Advantage
• Simple rebate program.
• Forex related online and offline marketing
  knowledge.
• Over 2 billion in monthly volume traded through
  our firm allows you to piggyback on our aggregate
  volume.
• Superior customer support staff.
• Solid relationships with top level dealing and
  educational firms.
• Superior sales staff.
• Over 30 years of market experience can point you
  to the right products.

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TCFX IB in a Box

• With the IB in a Box program you will be able to
  follow our proven method of generating revenues
  of over 100,000 per month from the Forex
  industry.
• This program is in the initial stages so we can
  be very flexible about our level of involvement.
• Program includes but not limited to
• Customized Forex related marketing campaign and
  lead generation engine.
• Sales staff/tactics/training
• Access to top level IB relationships
• Our payout rate will be higher due our deep
  rooted relationships and aggregate volume.
• Access to top level charting, educational and
  trading products
• Learn proper sales cycle
• Proper incentives to provide traders.
• Very flexible program

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Thank You!

• Alexander Nekritin
• 1 781-444-6969
• alexn_at_traderschoicefx.com