New to FOREX?

New to FOREX?
Knowledge is the key to success.
Trading in financial markets can be profitable but risky. Is it very difficult to make
money in the Forex market? Definitely not, provided you know all about Forex and
currency trading. It is very important to know everything you can about Forex and
currency trading before you start trading. For those of you who are new to Forex, the
information given in this section covers the basics of currency trading. Alpari
recommends that you read it carefully and open a demo account before you start
trading with us on a live account.
In this section you will find articles on trading, written by our experts. More detailed
information on Forex and CFD is given here. We have also developed a tutorial in
order you could better understand how to make a deal.
Trading successfully in the Forex market is not an easy task. However, knowing a lot
about Forex and currency trading you can make it possible.
Copyrights and source of information – alpari.org Forex Broker
What is FOREX?
Foreign Exchange Market (Forex) is the arena where a nation's currency is
exchanged for that of another at a mutually agreed rate. It was created in
the 70's when international trade transitioned from fixed to floating
exchange rates, and nowadays is considered to be the largest financial
market in the world because of its tremendous turnover.

Probability of earning on Forex is based on the fact that every national currency
is a good, as well as wheat or sugar, and a medium of exchange, as gold or
silver. As the world is changing so fast, economic conditions of every country
(production, inflation, unemployment etc) are getting more and more dependant
on each other, as a result, the rate of a currency changes against other
currencies. This is the main reason of the process of rate fluctuations.
Why FOREX?
Nowadays Foreign Exchange Market (FOREX) is the
most profitable sector for your investments.
Unlike other financial markets the Forex market has no physical location, like
stock exchange, for example. It operates through the electronic network of
banks, computer terminals or just by phone. The lack of physical exchange
enables the Forex market to operate on a 24-hour basis, spanning from one zone
to another across the major financial centers (Sydney, Tokyo, Hong Kong,
Frankfurt, London, New York etc). In every financial center there are a lot of
dealers, who buy and sell currencies 24 hours a day during the whole business
week.
Here the most important reasons why Forex is so popular nowadays:
• Liquidity. Forex is the largest financial market in the world, with the
equivalent of over 3-4 trillion changing hands daily when the volume on the
stock markets is only 500 billions of dollars.
• Flexibility. Because of 24-hour trading participants of the foreign exchange
market would not wait to react on some events, as this happens on other
markets (for example: stock markets). On other markets you simply can be
late if you have to wait till morning to show your reaction, as in the morning
the event will be already in the price, greatly differ from the desired level.
• Lower transaction costs. Traditionally the Forex market has no
commissions, except spread, the difference between ask and bid prices.
• Price stability. High liquidity helps ensure price stability, when unlimited
contract size can be executed at a fair price. It helps to avoid the problem of
instability, as it happens in the stock market and other exchange-traded
markets because of the lower trade volume, where at one price only limited
number of contracts can be executed.
• Margin. Margin size for trading on Forex is defined in the contract entered
between a client and a bank or a brokerage company, which gives the
opportunity to enter the market for the individuals and usually it is 1:100. So,
the collateral of 1000 US dollars allows a trader to make deals on $100.000.
Such high leverage combining with the rapid rates fluctuation make this
market profitable but at the same time extremely risky.
FOREX may be classified by several features:
Type of transactions. For example, there is an international conversion market
(conversion transactions such as US Dollar / Japanese Yen or US Dollar /
Canadian Dollar etc.).
Geographic feature. Unlike other financial markets the Forex market has no
physical location, like stock exchange, for example. It operates through the
electronic network of banks, computer terminals or just by phone. The lack of
physical exchange enables the Forex market to operate on a 24-hour basis,
spanning from one zone to another across the major financial centers (Sydney,
Tokyo, Hong Kong, Frankfurt, London, New York etc). In every financial
center there are a lot of dealers, who buy and sell currencies 24 hours a day
during the whole business week. Trading session starts in Far East, in New
Zealand (Wellington), then Sydney, Tokyo, Hong Kong, Singapore, Moscow,
Frankfurt-on-Maine, London and ends in New York and Los Angeles.
Main FOREX Participants
Let’s consider the main FX participants
• Commercial banks
They execute the main volume of currency operations. Other market
participants hold their accounts in banks and make necessary conversional,
depositary and credit transactions on them. Banks cumulate (through operations
with clients) market requirements of currency conversions and funds
attraction/depositing and refer with them to other banks. Besides filling clients’
requests banks can make transactions independently at own their expenses.
Finally, Forex represents a market of interbank transactions, and under currency
and interest rates fluctuations we should consider interbank foreign exchange
market.
Large international banks, daily operation volumes of which reach 1 bln
dollars, have the most important impact on the world exchange markets. These
are such banks as Deutsche Bank, Barclays Bank, Union Bank of Switzerland,
Citibank, Chase Manhattan Bank, Standard Chartered Bank and others. Large
transaction volumes that may cause significant changes in quotations or
currency prize are the most evident distinction of these banks. Large players are
usually divided into bulls and bears. Bulls are the market participants who play
for the currency prize increasing; bears are the market participants who play for
the currency prize decreasing. The market is usually in balance between bulls
and bears, and the difference in currency quotations usually fluctuates in quite a
narrow range. Although when bulls or bears overpower, currency rates
quotations fluctuate quite sharply and significantly.
• Firms that realize foreign trade operations
Companies that take part in the international trading have a great demand on the
foreign currency (with regard to importers) and offer of the foreign currency
(with regard to exporters), and also deposit and attract free currency remains.
As a rule, these organizations have no direct access to Forex and make
conversional and deposit transactions via commercial banks.
• Companies that realize depositing of foreign assets (Investment Funds,
Money Market Funds, International Corporations)
These companies represent different international investment funds. They
realize policy of diversifying management of assets portfolio, depositing funds
in securities of governments and corporations of different countries. They are
called just funds in slang of dealers. The most popular funds are «Quantum» of
George Soros and «Dean Witter».
Large international corporations also refer to this kind of firms. They realize
foreign industrial investments: affiliates and joint enterprises foundation, such
as Xerox, Nestle, General Motors, British Petroleum, etc.
• Central banks
Currency regulation on the foreign market is the main duty of the central banks,
particularly, prevention from national currency sharp bounces in order to avoid
economical crises, support balance between exports and imports etc. Central
banks have a direct influence on Forex. Their influence may be both: direct –
currency intervention, and indirect – money funds and interest rates regulating.
They can’t be referred to bulls or bears, as they may play both for rising and
falling depending on concrete tasks they have currently. Central banks may act
alone on the market to influence on the national currency, or they may act
together with the other central banks to conduct the collective currency policy
on the international market or for collective interventions.
The following banks have the greatest influence on the world currency market:
the US Central bank — US Federal Reserve (FED), German Central bank —
Deutsche Bundesbank and GB Central bank — Bank of England (Old Lady).
• Foreign exchanges
In some countries with transition economy currency markets operate. They
realize currency exchange for entities and formation of the market currency
rate. The State usually regulates the exchange rate, making use of currency
markets compactness.
• Currency brokerage firms
Their function is to bring together a buyer and a seller of the foreign currency
and to accomplish conversional or loan-depositary operation between them.
Broker firms take broker commission in the form of percent from the
transaction charge.
• Physical bodies
Physical bodies make a great deal of noncommercial transactions as related to
traveling abroad, wages, pension and earned income transfer, foreign exchange
cash buying and selling. In 1986 due to margin introduction physical bodies got
an opportunity to invest free cash on Forex to take profit.
The main volume (90-95%) on Forex is earned by the largest world commercial
banks by making conversional transactions both in clients’ interests and by
their own expense. Nevertheless, advance in computer technologies let to find
field of application for funds of private and retail investors. More and more
brokerage firms and banks give access for private investors to Forex via
Internet.
Mini Forex
Work on mini-forex means work with contracts less than 100 000$. Mini-forex
offers an opportunity to receive the services equal to those that traders who
work with several thousands/tens of thousands dollars deposits receive, but
depositing only 100$.
When trading on mini-forex a trader just makes less than 1.0 lot deals. Till 2003
there was difference between mini-forex and forex in trading terms. Till 2003
3$ commission was charged for each transaction on mini-forex without
reference to the transaction volume.
Forex is an interbank market with the minimal transaction size $1 mln. A
logical question occurs – How transactions of $10,000 size, made on miniforex,
get into the interbank market? Broker is clients’ counterparty for such
transactions. If a broker has a lot of clients who trade on mini-forex he can
transfer a joint client position to Forex. If a company works for a long time and
has thousands/tens of thousands clients (both on Forex and mini-forex), then as
a rule the joint client position is transferred to Forex and a broker isn’t
interested in his clients to lose. Every client’s transaction (without reference to
its financial result) brings 1-2 pips to broker. The more successful a client is,
the more transactions he/she will make and the more profit a broker will take.
So, work on mini-forex in large companies doesn’t differ from work on Forex.
Forex Glossary
In banking practice there are special code abbreviations: for example, the
exchange rate for dollar against yen refers to USD/JPY, British pound against
US Dollar to GBP/USD. The first currency is referred to as the base currency
and the second as quote currency:
USD / JPY = 120.25
Base currency Quote currency Rate
This abbreviation specifies how much you have to pay in quote currency to
obtain one unit of the base currency (in this example, 120.25 Japanese Yen for
one US Dollar). The minimum rate fluctuation is called points or pips.
Most currencies except USD/JPY, EUR/JPY and GBP/JPY where pip is 0.01
has 4th decimal system as 0.0001.
The currency pairs on Forex are quoted as bid and ask (or offer) prices:
Bid Ask
USD / JPY = 120.25 / 120.30
Bid is the rate at which you can sell the base currency, in our case it’s dollar,
and buy the quote currency, i.e. Japanese Yen.
Ask (or offer) is the rate at which you can buy the base currency, in our case
dollars, and sell the quote currency, i.e. Japanese Yen.
Spread is the difference between the bid and the ask price.
Margin trading assumes that Forex dealing is based on the margin, the
collateral, and the provided leverage.
This means that a client places minimal cash deposit, much smaller than the
underlying value of the contract, but can operate with larger amounts sufficient
to enter the real market. Such credits are provided by the brokerage companies
besides their informational services and make it possible for a trader to enter
into positions larger than his/her account balance. This collateral is typically
referred to as margin.
Leverage is the term used to describe margin requirements: the ratio between
the collateral and borrowed funds 1:20, 1:40, 1:50, 1:100. Leverage 1:100
means then when you wish to open a new position, then you must have 100
times less then the contract size.
Currency Rate is the ratio of one currency valued against another value of a
currency of one country. It whether depends on the demand and supply on free
market or restricted by a government or by central bank.
Lot is a fixed standard currency amount for trading provided on the collateral
— margin. Sometimes it is called the contract size. The 1.0 lot contract size for
each currency pair is listed in Contract Specification.
Storage is the charge to rollover the position overnight. It can be both positive
(credited to your account balance!) or negative (debited from you account
balance) depending on the interests rate in the countries which currencies you
trade.
Trader's Textbook
For profitable work on the financial markets a trader should follow the
principles specified below.
Forecast which way a market is expected to trend (Analysis).
There is a wide range of methods of analysis: Fundamental Analysis, Technical
Analysis, Elliott Wave Analysis, Candlesticks, Tomas Demark Theory, Chaos
Theory or any other. With the help of these methods a trader can forecast prices
behaviour in the future.
Choose a right moment to open or close a position (Trading Strategy).
Trend identification is not enough for profitable trading. It is essential to choose
the right moment to enter the market. E.g. if having identified the bullish trend
you enter the market before a retreat starts, this retreat may cancel your stop
order. Your position is closed. You lose money and the market reverses and
goes in the direction you’ve identified.
Follow the rules of money management (Money Management).
It will decrease the risks of your financial operations. Your money management
system will allow you to make deals only with the minimal risk.
Do not allow your emotions to operate your account (Psychological
Peculiarities of Trading). When making a decision emotions should be kept
under control. Emotions are the first enemies of a trader.
Fundamental Analysis
Introduction to the fundamental analysis
The most important and complicated component of the currency dealing is
ability to analyze the tendency of market changes and therefore to forecast
which factors will influence on the currency rate and how. The probability of a
quick profit taking and quick losses is included in the price trend. Thus, correct
forecast of the market trend, estimation of different events, correct reaction to
the speculations and expectations àre the necessary component of trader?s
successful work. There is a great deal of factors which influence on the whole
market as well as on the separate instruments (currencies, shares, futures).
There are two main methods of the market analysis — fundamental and
technical. The fundamental analysis estimates the market situation in the
context of political, economical, financial and credit aspects. The technical
analysis is based on the methods of graphical research and mathematical
analysis.
In the context of the fundamental analysis monetary, political and economic
events in the world are studied. These events may influence on the market
development. The most important here is information about economic
indicators of the countries, work of exchanges and large companies such as
market-makers, interest rates of the central banks, government's economic rate,
probable changes in the country's political situation, various speculations and
expectations. The fundamental analysis is the most complicated and important
part of the work at the forex market. To perform the fundamental analysis is
much more difficult than any other, as the same factors have different influence
on the market in different situations and important factors may shift to the
insignificant ones. Except some more formal rules experience of work at the
market is needed here.
Fundamental factors are usually estimated from two points of view:
Influence on the interest rate;
State of the country’s national economy.
Data of Economic Development of a Country
The principle of this sub-group impact is based on the axiomatic statement that
the rate of any currency is the derivative of this country economic development.
Stability of economic development specifies foreign investors interest in the
capital expenditures to the country and, correspondingly, demand on the
national currency. The data of economic development of a country include such
key indicators as balance of trade and balance of payment, inflationary rates,
unemployment rate, GDP etc.
In the Forex market a unified system of currencies quotation through the US
dollar was elaborated. Thus, the US economic development and the dollar rate
are the key factors, which specify market movement, common to the main
currencies. That is why the US dollar and its behavior are in the limelight, as
they trigger some specific reaction of other currencies. Frankly speaking, it
doesn't eliminate other factors impact, such as policy of the national banks or
influence of the related markets, which will be described briefly a bit later. In
the USA the main indicators of economic development are released monthly or
quarterly.
Trade negotiations
Trade negotiations are the important part of economic policy of any country. In
particular, such the important economic indicator as trade balance represents
the difference between export and import. In case the sum of exported goods
and services exceeds the price of imported ones Trade Balance is positive
(surplus), in case import surpasses export it is negative (deficit). The trade
deficit is the main problem for the USA within the last years. It is one of the
reasons of the dollar fall against the major European currencies. Results of trade
negotiations have an immediate impact on the market.

Technical Analysis
Technical analysis is market dynamics research, mostly by means of
charts, to forecast future prices movement.
There are three principles of technical analysis:
1. Price discounts everything
Price is affected by economic, political and other fundamental factors.
Some of them push the price up and others — down.
Price and factors influencing it.
All this information is reflected in prices. Technical analysis utilizes the
information captured by the price to interpret what the market is saying with the
purpose of forming a view on the future.
2. Price movements are not totally random, or prices trend
Trend is the main direction of the price. The main purpose of the charts is to
define a trend at an early stage and to trade in accordance with its direction.
3. There are three types of a trend
Trend Analysis
Trend is a general direction of the price.
There are three types of trends:
• Uptrend (or bullish). Prices rise.
• Downtrend (or bearish). Prices fall.
• Flat or Range.
Though any price movement can not be linear. Any trend consists of the
periods when the price moves in the direction of the main trend (Impulsive
movement) and periods of retracement (Correction). The market moves in the
wave mode. As the result tops and bottoms form on the price charts.
Support/Resistance Levels
Looking at the charts you can notice that tops and bottoms of the market can be
almost on the same inclined (sometimes horizontal) line. Such lines are called
support / resistance levels.
Resistance: lines are drawn between the significant top points. The more tops
confirm the line the stronger it becomes. That is the market shows that the price
level, specified by the resistance line, is very important and the market, having
reached its saturation, bounces back from it.
Support: lines are drawn between the significant bottom points.
Once the support level is broken downwards it becomes the resistance level.
Once the resistance level is broken upwards it becomes the support level.

Channel Lines
Often prices fluctuate between support / resistance levels. Such a movement is
called a Chanel. In case the channel lines diverge this is an expanding channel,
if they converge, then it is contracting.
Trend Indicators
Moving Average
Moving average is the average of prices over a specified number of periods. It
is a smoothed correlation between currency rates and time periods. The time
period of any moving average defines how much it will be smoothed. For
example, when a Moving Average is calculated by adding the closing prices for
the last 5 bars, then it is defined as a 5-period MA.
Simple Moving Average — SMA:
SMA = (P1+P2+P3+….+Pn) / n
P= Price — price of i-bar. Usually closing prices are used.
n — MA period. This is a number of bars on which the indicator is calculated.
The main disadvantage of SMA is that it counts the price twice, when it is
received and when it leaves the area of calculation. That is why improved
variants of the indicator should be better used.
Weighted Moving Average (WMA):
WMA = (w1*P1+w2*P2+w3*P3+….+wn*Pn) / (w1+w2+w3+…+wn)
wi — the so called weight or coefficient which is assigned to every price. The
closer the price to today the larger coefficient is assigned.
Exponential Moving Average (EMA):
EMA(t) = EMA(t — 1) + (K x [Price(t) — EMA(t — 1)],
where t — current time period (current bar),
t — 1 — previous time period (previous bar),
K = 2 / (n + 1),
n — EMA period.
The main advantage of the Exponential Moving Average (EMA) is that it
discounts both prices of the previous and current periods. Every subsequent
value becomes more significant.
MA length is better to choose for every specific instrument on which you trade
and for every specific chart scale.
Some traders believe that it is better to use Fibonacci figures.
For example, the following ones.
How to analyze Moving Averages:
If the price line crosses the Moving Average line from below, then this is a
signal to buy. If it crosses from above, then it is time to sell.
The first method gives many false alarms as markets become faster each year.
That is why cross-points of two Moving Average indicators of different periods
are used (n1 and n2);
Moving Average indicators of a greater period may specify the trend
themselves. When the value of the indicator is more than 40 it becomes less
sensitive to price movements and indicates only the general direction of the
movement (Trend);
The points of the most significant divergence of MA and the price chart
indicate that the market is overheated greatly and correction is possible.
Moving Average signals are more effective on a trend market and less effective
when the market is flat. As MA is a lagging indicator, it gives many false
alarms.
Chaos Theory
It’s important to understand the meaning of chaos in order to understand
correctly Bill Williams' Chaos Theory. Traditionally chaos is considered to
be a disorderly structure, though in fact it is much higher level of order.
Chaos is permanent, but stability is temporary. Financial markets result
from chaos.
Bill Williams developed unique trading concepts by combining trading
psychology with the Chaos Theory and its particular effect on the markets. He
suggested that rewards from trading and investing are determined by human
psychology and that anyone can become a profitable trader/investor if they
uncover hidden determinism in seemingly random market events.
Bill Williams says that fundamental or technical analysis can not guarantee
steady profitable results because they do not see the real market. Moreover, Bill
Williams says that traders lose because they rely on different types of analysis,
which are useless in nonlinear dynamic models, i.e. the real markets.
Trading is a psychological game, the way of self-realization and selfknowledge,
so the best way to become successful is to find your trading self, to
get to know it better and to follow it no matter what. Thus, there are two
significant aspects: self-knowledge and understanding of the market structure.
It is Bill Williams' view that making money can be easy if you understand the
market structure. In order to do this you should be aware of the market's
inherent parts called dimensions, each of which adds to the total picture.
These market dimensions are:
1. Fractal (phase space)
2. Momentum (phase energy) - Awesome Oscillator
3. Acceleration / Deceleration (phase force)
4. Zone (phase energy / force combination)
5. Balance Line (strange attractors)
It is worth mentioning that before the first dimension (Fractales) generates a
signal, all signals generated by other dimensions should be ignored. Once the
position is open in the direction of the first fractal signal, the trader “adds-on”
to this position every time a signal from other dimensions is generated. As a
result, a 30% market movement gives the opportunity to make a profit of 90-
120%.
Bill Williams' method to exit the market is very sensitive to price movements,
so it helps to fix profit within the last 10% of the trend, capturing not less than
80% of the movement. Bill Williams' theory has become very popular among
Forex traders.
Mechanical Trading Systems
Alexander Elder's Triple Screen Trading System is a vivid example of
mechanical trading systems.
Alexander Elder's Triple Screen Trading System
The idea of the Triple Screen Trading System is based on the concept that the
market is moving in waves just like waves in the ocean. Every powerful wave
consists of smaller ones, which consist of even smaller waves. To trade
successfully a trader should choose the moment when waves are moving in the
same direction to enter the market.
First Screen - Market Tide
It identifies the long-term trend (e.g. on the weekly chart).
The main trend is identified on the basis of the weekly chart and MACD
histogram. When histogram is down it is better to open short positions. The
selling signal will be stronger when the histogram is below zero. When the
histogram is up the best decision is to enter into a long position. Long position
opening will be more effective in case the histogram is above zero. The
tendency on the first screen is like a tide. And it is better not to swim against
the tide.
Second Screen – Market Wave
It identifies the mid-term trend (e.g. on the daily chart).
The mid-term trend is indicated with the help of oscillators, such as stochastic,
RSI and other indicators created on the daily chart. If the first screen points at
the bullish market and oscillators are in the oversold area this is a good signal
to buy. And vice versa on the weekly bearish trend when the oscillators are
overbought on the daily chart there is a good chance to sell. Waves are signals
of the second screen. The Triple Screen Trading System considers only the
waves which do not contradict the tide.
Third Screen
It identifies short-term trend, fixing breakouts of highs and lows of the previous
day.
If price reaches a new high comparing with the previous day, weekly trend
increases and daily oscillators fall to the oversold area buy signal forms. If price
reaches a new low comparing with the previous day, weekly trend is falling and
daily oscillators rise to the overbought area it is high time to sell. The third
screen identifies the ripple of the market.
Elder Ray Indicator
Elder Ray Indicator is an additional instrument of the Triple Screen Trading
System. Its aim is to measure bullish and bearish force at every moment of
time.
The calculation is based on the following principles:
Price is an agreement between sellers, buyers and square traders.
The Moving Average is the averaged price agreement.
The highest price is the maximum of the bullish force over a specified period of
time.
The lowest price is the maximum of the bearish force over a specified period of
time.
Elder Ray consists of three horizontal screens:
The first chart is a chart with a 13-period exponential moving average. When
the moving average rises there is a bullish trend. When the moving average
falls there is a bearish trend.
The second chart is a chart with a histogram of the Bullish Force. Bullish Force
is calculated as follows:
Bulls Power = High — EMA, where:
High — the maximum price over the period;
EMA — exponential moving average.
If the price top is higher than the moving average, then the Bullish Force is
above zero, so the bullish trend is confirmed. Otherwise, bulls are weak.
The third chart is a chart with a histogram of the Bearish Force:
Rears Power = Low — EMA, where Low — the minimum price over the
period.
If the price low is below the moving average this means that the downtrend is
very strong. Otherwise, bears are weak.
Elder Ray Main Signals
Buy Signals. Moving average rises and Bullish Force indicator is below zero.
The best time to buy is when the Bearish Force first falls below zero and then
immediately rises. If new price highs are confirmed by new Bullish Force
indicator highs, then it is a good confirmation of the bullish trend. Bearish
convergence is another strong signal.
Sell Signals. Moving average moves downward and Bullish Force is above
zero. Bearish trend is confirmed if the price lows and Bearish Force indicator
lows move downward in parallel. Bullish divergence is another strong signal.
Main Types of Charts
Quite unusual charts are used to show price movement.
1. Bar Charts
This is the most common type of charts. It consists of vertical bars which show
the range of the price change within some definite period of time.
Open — opening price, in this case 1 hour opening price. That is the first price
of an hour.
Close — closing price, in this case 1 hour closing price. That is the last price of
an hour.
High— the highest price within this period of time.
Low — the lowest price within this period of time.
2. Candlesticks or Candles.
This is also a very popular type of charts. It is built just like a bar chart. The
distance between the opening and closing prices is given in the shape of the
triangle.
If Close is higher than Open the body of the candle is colored in light (in white
color).
If Close is lower than Open the body of the candle is dark.
3. Line chart
Trading Platform MetaTrader
MetaTrader 4 is the latest trading software for internet trading, which
allows you to trade different financial instruments such as FOREX, CFD,
Futures, and Shares.
MetaTrader 4 offers clients a wide range of features:
• Online trading on FOREX, CFD, Futures, and Shares.
• Various execution technologies: Instant Execution, Request Execution,
Market Execution.
• Confidentiality of all transactions.
• Technical analysis: a lot of built-in indicators and line tools, possibility of
creating your own indicators and scripts, support of various timeframes (from
minutes up to months).
• On-line news from DJ FOREX, which contains a specialized range of
information for professional Forex traders.
• Built-in language to develop trade strategies (Expert Advisors) MetaQuotes
Language 4; accurate Expert Advisors' test on historical data.
• Multilanguage program interface.
• Charts printing.
• Real-time quotations export via DDE.
Before opening live account it is recommended to open demo account. Demo
account doesn’t actually differ from live account in functional capabilities,
except the fact that profit and losses are virtual on demo account.
When working on demo account, you don’t bear risks to loose your money,
but you may:
• get experience of working on FOREX;
• study the process of Forex analysis;
• try real-time quotations and improve trading strategy with no risks;
• develop your own system of Money Management;
• get experience of working in MetaTrader.
How to Make a Deal
for example,
It is necessary to use the order window of MetaTrader to make a transaction. If
market analysis shows that the currency pair chart will rise, you should buy,
and vice versa, if it is expected to fall you should sell. Scroll the wheel to see
how a transaction is made.
Where to trade?
• ONE WORLD FOREX is positioned to attract the most diverse range of
investors – from the average investor to the most sophisticated retail, fund
manager and/or institutional forex trader. http://www.1world-forex.com/
• MARKETIVA With more than 260,000 serviced users, 150,000 unique and
live trading accounts, and more than 2.7 million live orders executed each
month, Marketiva is one of the most popular over-the-counter market makers
in the world. http://www.marketiva.com/
• NorthFinance We have been trading on the foreign currency exchange
market since 2001, going from strength to strength. North Finance is
registered in Belize. Its operate within the financial market in accordance
with The Memorandum of Association and Articles of Association, which
was given to the company by Belize International Business Companies
http://www.northfinance.com
• ALPARI Since 1998 Alpari Ltd. has been offering private investors trading
service on the international financial markets, including FOREX, via the
Internet. In 2005 Alpari Ltd. was awarded by a prestigious reward «Russian
Financial Elite» as the «Best Internet Broker 2004». http://alpari.org/en/
• MCFX In 2005 the co-founders of "FxTeam" established a London based
company MCFX Co Ltd, who's objective is to provide a fully regulated FSA
company service to large corporate and individual clients on the Forex
market.At the moment the company is in the process of acquiring the FSA
license. www.mcfx.co.uk
Forex Killer Features
• Used by both professional traders and beginners with no Forex experience!
• You can start with as little as $1000 on real account or test system on Demo!
• Developed by team of experts: a mathematics Ph.D., a behavioural
psychologist and an experienced Forex trader
• System is highly efficient (that means, very profitable). You can earn $ 500
per day!
• Works in any country with any broker you like!
• Applies to any currency pair and any financial market!
• Reliable and consistent, Stand-alone software!
• Can be tested without risking any trading capital!
• Can be implemented at any time of the day because a market is always open
• Breathtakingly simple, Easily and quickly understood by the average
independent trader!
3 easy steps how to use Forex Killer Software:
1. Input data for last 10 time periods (hours, days or weeks)
2. Press “Calculate” button to generate next Signal and its probability
3. Place market orders and get your Profit!
Let's look at Forex Killer trade example:
1. Long trade triggered on the 11th of May at 1.3485
2. Profit objective is reached, 1.3590
Profit: +105 pips ($ 1050)
FAQ: Here are some of the frequent asked questions people
have about Forex Killer:
Q: I have never traded the forex market, is Forex Killer for me?
A: Absolutely! Forex Killer software was created for beginners as well as
experienced traders. From Forex Killer manual beginners will learn
everything they need to know about the forex market to start trading next
day! Forex Killer is successfully used by beginners with no Forex
experience at all!
Q: I pay hundreds of dollars as a monthly fee to companies for forex
trading signals. Does Forex Killer have monthly subscribtion fees?
A: No! You purchase sortware to generate your own signals at home! No
more monthly fees! You can finally create signals by yourself with our
forex advanced trading signal system "Forex Killer"!
Q: How much money do I need to start trading?
A: Depending on your broker rules, you can start trading with an amount
as low as $1,000. Remember that starting out with low trading capital may
put you at disadvantage because you will only be able to trade forex in
small share lot sizes. We recommend to start with capital of $2,000-5,000
or train on Demo account.
Q: Is it hard to learn and implement your trading system Forex Killer?
A: No! Most people that purchase Forex Killer start trading the next day
after they install it.
Q: Does the strategy cover currency pairs other than EUR/USD?
A: The strategy has been designed to be useful for trading any major
currency pair such as EUR/USD, GBP/USD, USD/JPY, USD/CHF etc...
The examples are mostly EUR/USD, however our forex strategy can be
easily applied to any other currency pair.
Q: What kind of Internet connection and computer hardware do I need?
A: The kind of Internet connection that you should use depends greatly
upon your trading style. Active day trading requires high bandwidth, high
performance and reliable Internet connection. Although it is possible to
successfully day trade using regular phone line connection, we would
recommend you to use either Cable or DSL Internet service if it is
available in your area.
BONUS: Forex Non-Farm-Payroll strategy
I used this strategy for many months and I have great results: 300-500
pips!!
I will describe it on example:
1. You get the data from Economic Calendar by Bloomberg
(http://www.bloomberg.com/markets/ecalendar/) and find the next date of NFP.
You will notice : Friday Feb 3 Employment Situation 8:30ET
NFP is released every month, first Friday!
The employment situation is a set of labor market indicators. The
unemployment rate measures the number of unemployed as a percentage of the
labor force. Non-farm payroll employment counts the number of paid
employees working part-time or full-time in the nation's business and
government establishments. The average workweek reflects the number of
hours worked in the non-farm sector. Average hourly earnings reveal the basic
hourly rate for major industries as indicated in non-farm payrolls.
2. Wait untill this date. In the X day, 5-10 minutes before the 8:30ET
create 2 FOREX Orders:
if current price is 1.2000 then create 2 order higher and lower to this price:
Buy 1.2020 T/P 1.2060, S/L 1.2000
Sell 1.1980 T/P 1.1940 S/L 1.2000
This is just an example. It is better to create several orders with lower T/P and
S/L.
Real Results: Non-Farm Payroll report Feb 03, 2006
If you traded on NFP today I think your are very happy now, because we have
an excellent results this month! I can say Fantastic results!
You could earn up to 170 pips on every pair!
I will describe it.
Economic Results:
Nonfarm Payrolls, M/M change
Consensus 275,000
Actual 193,000
I will describe on GBP/USD pair. Other pair gave the same great results! We
opened "a sell order" near price 1.7760. Then price strongly went down to
1.7620 or even more!
So if you had strong nerves - you could close near 1.7620-1.7630 (if you had
large Take Profit)!
So you profit can be 140 pips after 15 minutes of work!
For example, if your deposit was $10,000 and you opened 4 orders (1,0
Lot) on 4 pairs: EURO,DOLLAR,GBP and CHF you cound make $5600 of
real profit! (or 50% after 15 mins)!
MARCH 10, 2006
Profit 135 pips!!!
April 7, 2006
Profit 60 pips!!!
We wish you Happy Trading & Great Profits!
Forex-Killer Team