In the currency market, traders buy and sell currencies with the hope of making a profit when the value of the currencies changes in their favor, whether from market news or events that take place around the world. Currencies, just like any other commodity that can be bought or sold, are subject to the laws of supply and demand. When more people want a particular currency, the cost of the currency in terms of other currencies will go up. When demand decreases or people do not want to hold a country’s currency, the value will go down.

When trading currencies, the trade is always executed as a currency pair. One currency is bought and the other sold relative to the supply and demand of both currencies. For example, you buy Euros with U.S. Dollars anticipating an increase in the value of the Euro relative to the U.S. Dollar. If the Euro rises against the U.S. Dollar, you can close the trade having made a profit. Yet, suppose the Euro falls relative to the U.S. Dollar, you may experience a loss. Self-traders should consider focusing their attention and become very familiar with one or two of the major currency pairs (EUR/USD, GBP/USD, USD/JPY, and USD/CHF).

SYMBOL	CURRENCY PAIRS	TERMINOLOGY
EUR/USD	Euro/US Dollar	Euro
USD/CHF	US Dollar/Swiss Franc	Swissy
USD/JPY	US Dollar/Japanese Yen	Dollar Yen
GBP/USD	British Pound/US Dollar	Cable
AUD/USD	Australian Dollar/US Dollar	Aussie Dollar
USD/CAD	US Dollar/Canadian Dollar	Dollar Canada (Loonie)
EUR/GBP	Euro/British Pound	Euro Sterling
EUR/JPY	Euro/Japanese Yen	Euro Yen
EUR/CHF	Euro/Swiss Franc	Euro Swiss
GBP/CHF	British Pound/Swiss Franc	Sterling Swiss
GBP/JPY	British Pound/Japanese Yen	Sterling Yen
CHF/JPY	Swiss Franc/Japanese Yen	Swiss Yen
NZD/USD	New Zealand Dollar/US Dollar	Kiwi

What Drives the FOREX?

Economic Growth

Investors want to be sure that they are investing in a solid economy that is achieving steady growth. Currency traders looking to assess the economic growth of a country will look at unemployment, trade, and GDP data.

WHAT IF.......
BAD	Rise in Unemployment
GOOD	Fall in Unemployment
GOOD	Rise in GDP
BAD	Fall in GDP
GOOD	Rise in Exports
BAD	Fall in Exports

Interest Rates

Money tends to follow interest rates. If interest rates go up, money will flow into the country from all over the world as investors seek to capitalize higher returns. To determine whether interest rates will rise or fall, investors pay attention to economic inflation indicators as well as speeches by influential figures. Generally, the timing of interest rate moves are known in advance. They take place after regularly scheduled meetings by the BOE, FED, ECB, BOJ, and other central banks.

WHAT IF.......
GOOD	Rise in Interest Rates
BAD	Fall in Interest Rates

Political Stability

Election turmoil, changes of government, high unemployment and international conflict all make investors cautious to put their money in a given country. Investors will watch for major news that comes out of a country.

WHAT IF.......
BAD	Threat of Terrorism
BAD	Natural Disaster
BAD	Geo-Political Tensions

4X TRADING

Forex trading is a speculative endeavor that requires proper training, education, discipline, confidence, risk management and money management skills. Developing a trading system matched to your trading style requires more than technical indicators, trends, and market analysis; it also requires mental and emotional discipline. Often, a trader's emotions of greed and fear negatively influence trading results. Therefore, we suggest the following rules of trading:

Have a trading plan focused on proper money and risk management techniques.
Use Stop Loss orders to protect your investment and minimize losses.
Open a demo account and paper trade before using real money.
Keep a log of all your trades – good and bad. Analyze each trade and learn from it.

4X BASICS

Currency Pair
Number of Lots traded
Trade direction – Long (buying) or Short (selling)
Order type – Market or Entry order
Money Management – Stop Loss order and Limit (Take Profit) order

TERMINOLOGY

Pip/Point — Price Interest Point, the smallest unit of price for any Foreign Currency (e.g., for USD/CHF one point (or pip) equals .0001 Swiss Francs and for USD/JPY one point (or pip) equals 0.01 Japanese Yen).

Bid Price — The bid is the price at which the broker/dealer is willing to buy a specific currency in a Foreign Exchange Contract or Cross Currency Contract. At this price, the trader can sell the base currency. It is shown in the left side of the quotation, for example: 1.4527 - 1.4532.

Ask (Offer) Price — The ask is the price at which the broker/dealer is willing to sell a specific currency in a Foreign Exchange Contract or Cross Currency Contract. At this price, the trader can buy the base currency. It is shown on the right side of the quotation, for instance 1.4527- 1.4532

Long Position — In foreign exchange trading, when the base currency in the pair is bought, the position is said to be long in that currency. It is understood that when the base currency in the pair is "long," the second currency will be "short."

Short Position — Selling a currency in which you have anticipation of it falling in value. At that point, you will be able to "cover" your short by buying back the currency at a lower price.

Lot — The normal unit of trading in the FOREX market.

Base Currency — The first currency in a Currency Pair. A currency against which the exchange rate is applied. Usually, it stands first in the codes of currency rates. It shows how much the base currency is worth as measured against the second currency.

Cross Currency — The second listed currency in a Currency Pair.

Price Interest Points-PIPS

In the 4X Market, profits are made by gaining PIPS. A PIP is the last digit from the decimal point.

PIP Values - Fixed or Floating

•FIXED - When the USD is the Cross Currency (right side of pair), the PIP value is fixed at $10.00 per PIP (i.e., GBP/USD).

•FLOATING - When the USD is the Base Currency (left side of pair), the PIP value is based upon the exchange rate of the Cross Currency (i.e., USD/JPY). Also, the PIP value is floating when the pair consists of foreign currencies (i.e., EUR/CHF).

LOT

LOT is the normal unit of trading in the FOREX market. Trades are made in LOT increments unlike SHARE increments in the stock market.

Standard FOREX account has a 1:100 leverage ratio. 1 Lot = $1,000 investment = $100,000 currency

*Mini FOREX account has a 1:200 leverage ratio. 1 Lot = $50 investment = $10,000 currency

* A Mini account is avalable for a minimum account opening balance of $300.

Best TAMES To Trade 4X

OPEN MARKETS / VOLUME

EST	01	02	03	04	05	06	07	08	09	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24
EUR		$	$	$	$	$	$	$	$	$
CHF		$	$	$	$	$	$	$	$	$
GBP			$	$	$	$	$	$	$	$	$
USD								$	$	$	$	$	$	$	$	$
CAD								$	$	$	$	$	$	$	$	$
JPY	$	$																$	$	$	$	$	$	$
NZD																$	$	$	$	$	$	$	$	$
AUD																$	$	$	$	$	$	$	$	$
	Open Market					High Volume					Moderate Volume						Low Volume					EST

Seasonality