#forex explained

from the list of trading instruments pic FX or CFD these two instruments share the same trading engine but he used four different assets currency pairs traded via Forex and stocks via CFDs select the assets you'd like to trade enter the amount of money you're willing to invest select an appropriate multiplier a multiplier will allow you to invest a larger amount than the one you have on hand which means your potential profit will be bigger however the losses you could incur would also be multiplied by the same number depending on whether you believe the asset is going to appreciate or depreciate click buy or sell click on the auto close option to specify the stop loss and take profit price levels a stop-loss restriction automatically closes your trading position when the losses on that trade reach a certain amount similarly a take profit restriction will automatically close your position once a certain amount of profit is made the position will remain open and active either until the auto close limits are reached or until you decide to close the deal yourself you can manually close the position whenever you see fit by clicking on the close button we wish you a pleasant trading experience [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music]

from the list of trading instruments pic FX or CFD these two instruments share the same trading engine but he used four different assets currency pairs traded via Forex and stocks via CFDs select the assets you'd like to trade enter the amount of money you're willing to invest select an appropriate multiplier a multiplier will allow you to invest a larger amount than the one you have on hand which means your potential profit will be bigger however the losses you could incur would also be multiplied by the same number depending on whether you believe the asset is going to appreciate or depreciate click buy or sell click on the auto close option to specify the stop loss and take profit price levels a stop-loss restriction automatically closes your trading position when the losses on that trade reach a certain amount similarly a take profit restriction will automatically close your position once a certain amount of profit is made the position will remain open and active either until the auto close limits are reached or until you decide to close the deal yourself you can manually close the position whenever you see fit by clicking on the close button we wish you a pleasant trading experience [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music]

from the list of trading instruments pic FX or CFD these two instruments share the same trading engine but he used four different assets currency pairs traded via Forex and stocks via CFDs select the assets you'd like to trade enter the amount of money you're willing to invest select an appropriate multiplier a multiplier will allow you to invest a larger amount than the one you have on hand which means your potential profit will be bigger however the losses you could incur would also be multiplied by the same number depending on whether you believe the asset is going to appreciate or depreciate click buy or sell click on the auto close option to specify the stop loss and take profit price levels a stop-loss restriction automatically closes your trading position when the losses on that trade reach a certain amount similarly a take profit restriction will automatically close your position once a certain amount of profit is made the position will remain open and active either until the auto close limits are reached or until you decide to close the deal yourself you can manually close the position whenever you see fit by clicking on the close button we wish you a pleasant trading experience [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music]

and today's topic of discussion is not exactly not quite not that kind of affects we're not talking about spacecraft and lightning bolts and fire and flames Michael big I love Michael Bay by the way if you haven't seen that new movie edge of tomorrow check it out awesome movie option so this video I'm going to teach you everything you need to know about effects or for it this is your FX primer and here in the shadow we keep it easy fun and fast might bring a smile to your face actually enjoy the learning process and yet you're able to understand something that was previously complex now seems simple let's talk about a fact maybe let's talk about you and me let's talk about all the good things and all the bad things like leverage well we'll talk about leverage that's a double-edged sword it's both a positive it's a blessing and the curse stay tuned to find out why promise not to sing any more in this video well I can't promise that 4x so let's go ahead and f o r e8 and then also known as FX Fox Trot X ray so what is FX all about I'm going to surprise you right now I'm going to let you know that you are actually probably already an FX trader because if you've ever gone to the bank to trade your currency let's say you go into Italy very beautiful country highly recommend it you're going to go to Italy you want to change your US dollars if you're coming from America you want to change US dollars to euros to go to Italy well guess what you're basically kind of in a way participating in the FX market I mean what you're doing is essentially the core of what happens in the FX market so the effects market is basically you're trading currencies those equities you trade companies now I know this is oversimplified I'm trying to make this in a format where everyone can understand so basically I'm trying to focus on concepts here so you think about equities as your trading companies you get shares of ownership in a company in effects is like you trade countries so what does that mean the health of a company affects the stock price in equities market the health of a country's economy affects the value of its currency and therefore that's going to affect your exchange rates and that's going to affect your FX trading but essentially again with affects your trading currencies so typically when you look at and a quote when you look at an FX quote you're going to see two currencies because with trading of currencies obviously you're going from one currency to the next exchange your US dollars to euros so there's you're on one side and there's US dollars on the other side so let's look at a currency pair right now so let's say we wanted to trade from want to get euros so here is the symbol and this is how things are written in FX this is a symbology so you are representing euros and then you put a slash like this and on this side you put US dollars so this is fundamental to your understanding of what FX is all about is to understand the way that it is looked at in terms of pairs so this is what what's called a currency pair now the way the way you interpret this is essentially what you want here is you want euros and this is what you have so whenever you see this format this is the target currency and this is essentially what you have to convert so I have US dollars I want to get euros always look at it that way so and the proper terms is this is actually your counter currency and this is your base currency so how many US dollars will it take to get my target currency I want a hundred euros so I have to pay a certain amount of US dollars to get that your that euro amount so that's the way it looks so when you look at quotes and you see something like $1 and 38 for example being a quote that means it's going to be one dollar 38 US dollars to get one euro and that essentially is the basis for the effects market in terms of the way you look at things now before we get into more details I want to break down some some of what the effects market is all about so what are the details in the effects market especially in in in contrast to the equities market so let's go ahead I'm gonna put some notes on this board and then we're gonna go through them one by one I know exactly what you're thinking I'm a mind reader you're looking at this and you're saying that looks like an eye that looks like an open mouth and that looks like something kind of tear drop but you're wrong this is actually my best representation of a globe representing the earth planet Earth because Forex is internationally trading currencies all over the world Aussie dollars Canadian dollars Mexican dollars yen US dollars euros you name it but let's go through the basics here so first of all where can you trade affects so affects unlike with equities it's one market you don't have York Stock Exchange NASDAQ and all this kind of stuff it's just one market and that also means that instead of looking at let's say New York Stock Exchange 2,800 stocks listed on that exchange here you major your majorly you're mostly looking at what we call majors the majors are the major currency pairs remember FX is all about currency pairs because it's all about exchanges where you're changing from one currency to another so in order to have something to trade you need two currencies and the main ones are from the main economies around the world so you have those main pairs which are called the majors and we'll go over those majors in a little bit so next thing is when can you trade you can trade 24 hours a day 5 days a week so you want to neglect your family and your kids you want to be trading affects at 3 a.m. in the morning go right ahead trade all day try it all night no problem and one of the reasons why you can do that I'm actually going to skip here is because you have an extremely high amount of liquidity the liquidity in the FX market is tremendous compared to that of the equities market so in comparison let's say potentially five trillion five with tea five trillion a day in the FX market compared to a little tiny little bit let's say four billion with the equities market four billion shares a day with the equities market potentially compared to the five trillion and just to give you a little perspective here and we're going to jump to size what's the difference in the size of the affects market to the equities market well let's just say that this represents the entire equities market are you ready for this if that's the entire equities market then this is the FX market wrong that would be incorrect if this dot represents the equities market then this circle is too small to represent the FX market the effects market is about 600 times that of the equities market so this circle would have to be much larger or another way to look at it is this dot here is three times too big to put this in scale to put this in an accurate scale this dot is actually three times bigger than it needs to be and the way I can determine that is because I know that on this board I can only draw about two hundred and twenty dots in order for me to properly do this to scale I would need to draw 600 dots so that tells me right there that this dot is way too big to represent the scale another way to look at it just to give you a little some something so you can understand the scale of what we're talking about here is if this is your loud-mouthed a three year old let me give you my head instead of a dot for a head that's better there you go if that's your three-year-old representing the equities market then this tall building represents the New World Trade Center which is built to a height of 1776 1776 feet so if this was the equities market then this is the FX market in comparison as far as scale now obviously this three year old is actually a and that's actually not a good representation representation you're talking about scale it'd have to be much smaller but the point is you know the difference between a three-year-old child in the world trade center so you can understand the scale between the two markets so now let's talk about cost the cost with the FX market is much lower than that of equities equities you have these huge commissions and all this kind of stuff you don't pay as much when you're trading effect so it's much cheaper than equities as far as risk risks well your biggest risk with FX is potentially going to be the leverage the blessing and the curse of effects you can command a tremendous amount of leverage in the affects market now let's say in the equities market maybe you have like a 50 percent margin account setup where you know you can actually put in let's say you put in five hundred dollars and you actually have a thousand dollars of buying power if that's the case in equities then here with the FX market you could look at something like a hundred to one up to hundred to one now it depends on which institution you're trading with and some other factors but leverage can be that high one hundred to one that means you can multiply your money tremendously in terms of buying power and I talked about actual cash in your account in terms of actual buying power which is the money that you're able to trade with within certain limitations you may have a minimum margin requirement so for example let's say on $1,000 cash in your account based on your margin requirements maybe you have to maintain a minimum of $200 balance on your account so that's just for example that thousand dollars could be translated to ten thousand dollars in actual buying power you can actually trade and not ten thousand but you still have that limitation of that minimum margin requirement so let's just say you can trade up to ten thousand dollars – that two hundred dollars now don't take these literally I just want you to understand the concept get the basic idea of how this works the basic concepts are there for the details we'll need to get little bit more advanced than this particular video is but that is one of the big advantages with effects is you have huge amounts of leverage and you need it because unlike with equities we have these massive fluctuations in prices the movements here are very very small in fact the movements here are actually the way we look at movement here is in pips which is percentage in point so we're the percentage in point depending on the currency pair you're looking at a fourth decimal place movement for example so let's say we have like a dollar thirty eight six and then two representing the pip so when this goes up to three goes up to four goes down to one goes down to zero that would be your pip movement depending on the the currency that you're actually referring to so when you're looking at price movements in the affects market you're looking at very very small and subtle changes therefore you actually need to command a high level of buying power you need to be trading a huge amount of currencies to actually make something profitable unlike again with equities where you can have a massive fluctuation in price where you can make a lot of money real quick with not that that much of investment depending on the stock in the stock price of course but with effects generally you're looking at very very small movement so therefore you want to have a lot of shares or not shares gonna have a lot of currency you want to trade a lot of money or currency in order to make any kind of sizable profits so that's something to consider the other thing is the we talked about the size of the market we talked about the likely liquidity liquidity is very high you can treat anytime you want to there's always liquidity is always pretty much you can buy sell anytime you want to and those are both are the basics pretty much of the FX market so we're going to go into a little bit more details and part two of this video but I think pretty much we've covered all the basics all the things that you need to know about effects but you probably want any things like how do I trade currencies that I don't own like I have US dollars in my account and I want to trade a currency that doesn't have any currency period it doesn't have any US dollars in it how does that work exactly you can find out that in part two of this video this video is just again a primer and introduction into the market so you can understand exactly what FX is and the lingo doesn't confuse you anymore and now you are and effects expert you know everything you need to know about effects at least to start so the next thing is for you to investigate further and learn further learn details we just talked about the concepts in this video but you need to learn about the details how do margin accounts work how do you actually trade how does the accounting work and I'll talk about some of that stuff in future videos but you also need to go out and do your own research as well I'm just helping to get you started helping to get rid of that intimidation factor now you can go with confidence so you are watching Carlisle speaks Wall Street and that has been my effects primer as requested by my subscribers thank you for watching have a great day don't forget to thumbs up the video share it and subscribe if you haven't subscribed already what are you waiting for what are you waiting for go ahead and subscribe thanks for watching you're thinking this sounds an awful lot like swaps well swaps or interest rate swaps it's something different you can actually click on that box and there's going to be a little line that's going to show up and you can click and drag it and as you drag it up and down the price scale you're going to see the price change so that's instead of entering manually limit price you can enter it that way and of course you'll see on this range you'll be like you know say two dollars here three dollars it wouldn't really go that high but just to give an example so you

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