Introdoction to

IORIX
http:[[www.myedollurs.com
Stock Truding ebooks


DIscIuImer
TIIs ebook Is Ior educuLIonuI purposes onIy. L Is noL InLended or sIouId be
consLrued us udvIce regurdIng InvesLmenLs In uny wuy. nvesLmenLs cun go down
us weII us up und pusL perIormunce Is no guurunLee oI IuLure perIormunce. Any
muLerIuI menLIoned In LIe book Is Ior IIIusLruLIon purposes onIy und sIouId noL
be InLerpreLed us udvIce.
nLroducLIon Lo LIe OREX

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Tuble oI Contents
A Little History ............................................................................................. 3
Market Mechanics ........................................................................................ 5
More on Market Mechanics......................................................................... 7
Leverage......................................................................................................... 9
Rollovers ...................................................................................................... 11
Accounts....................................................................................................... 13
Statements.................................................................................................... 15
The Main Players ........................................................................................ 18
What Next .................................................................................................... 22
nLroducLIon Lo LIe OREX

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A Little History
TIe purpose oI LIIs ebook Is Lo InLroduce LIe orex murkeL Lo you. As wILI muny
murkeLs LIere ure muny derIvuLIve oI LIe cenLruI murkeL sucI us IuLures, opLIons
und Iorwurds. or LIe purpose oI LIIs book we wIII onIy be dIscussIng LIe muIn
murkeL someLIme reIerred Lo us LIe SpoL or CusI murkeL.
TIe word OREX Is derIved Irom oreIgn ExcIunge und Is LIe IurgesL IInuncIuI
murkeL In LIe worId. UnIIke muny murkeLs LIe X murkeL Is open zq Iours per
duy und Ius un esLImuLed $1.z TrIIIIon In Lurnover every duy. TIIs Lremendous
Lurnover Is more LIun LIe combIned Lurnover oI uII LIe worId's sLock murkeLs on
uny gIven duy. TIIs Lends Lo Ieud Lo u very IIquId murkeL und LIus u desIrubIe
murkeL Lo Lrude.
UnIIke muny oLIer securILIes (uny IInuncIuI InsLrumenL LIuL cun be Lruded) LIe X
murkeL does noL Iuve u IIxed excIunge. L Is prImurIIy Lruded LIrougI bunks,
brokers, deuIers, IInuncIuI InsLILuLIons und prIvuLe IndIvIduuIs. Trudes ure
execuLed LIrougI pIone und IncreusIngIy LIrougI LIe nLerneL. L Is onIy In LIe
IusL Iew yeurs LIuL LIe smuIIer InvesLor Ius been ubIe Lo guIn uccess Lo LIIs
murkeL. PrevIousIy LIe Iurge umounLs oI deposILs requIred precIuded LIe smuIIer
InvesLors. WILI LIe udvenL oI LIe nLerneL und growIng compeLILIon IL Is now
eusIIy In LIe reucI oI mosL InvesLors.
You wIII oILen Ieur LIe Lerm NTERBANK dIscussed In X LermInoIogy. TIIs
orIgInuIIy, us LIe nume ImpIIes wus sImpIy bunks und Iurge InsLILuLIons
excIungIng InIormuLIon ubouL LIe currenL ruLe uL wIIcI LIeIr cIIenLs or
LIemseIves were prepured Lo buy or seII u currency. NTER meunIng beLween und
Bunk meunIng deposIL LukIng InsLILuLIons normuIIy mude up oI bunks, Iurge
InsLILuLIon, brokers or even LIe governmenL. TIe murkeL Ius moved on Lo sucI u
degree now LIuL LIe Lerm InLerbunk now meuns unybody wIo Is prepured Lo buy
or seII u currency. L couId be Lwo IndIvIduuIs or your IocuI LruveI ugenL oIIerIng Lo
excIunge Euros Ior US DoIIurs. You wIII Iowever IInd LIuL mosL oI LIe brokers
nLroducLIon Lo LIe OREX

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und bunks use cenLruIIzed Ieeds Lo Insure reIIubIIILy oI quoLe. TIe quoLes Ior BId
(buy) und OIIer (seII) wIII uII be Irom reIIubIe sources. TIese quoLes ure normuIIy
mude up oI LIe Lop oo or so Iurge InsLILuLIons. TIIs Insures LIuL II LIey pIuce un
order on your beIuII LIuL LIe InsLILuLIons LIey Iuve pIuced LIe order wILI Is
cupubIe oI IuIIIIIIng LIe order.
Now uILIougI we Iuve spoken ubouL orders beIng IuIIIIIed, IL Is esLImuLed LIuL
unywIere Irom ;o%-qo% oI LIe X murkeL Is specuIuLIve. n oLIer words LIe
person or InsLILuLIon LIuL bougIL or soId LIe currency Ius no InLenLIon oI ucLuuIIy
LukIng deIIvery oI LIe currency. nsLeud LIey were soIeIy specuIuLIng on LIe
movemenL oI LIuL purLIcuIur currency.
Source: Bunk or nLernuLIonuI SeLLIemenLs ILLp:JJwww.bIs.org
ExLrucL rom TIe TrIennIuI CenLruI Bunk Survey oI oreIgn ExcIunge und
DerIvuLIves MurkeL AcLIvILy.
Currency 1q8q 1qqz 1qq 1qq8 zoo1
US DoIIur qo 8z.o 8. 8;. qo.q
Euro ;.6
Jupunese Yen z; z.q zq.1 zo.z zz.;
Pound SLerIIng 1 1.6 q.q 11.o 1.z
SwIss runc 1o 8.q ;. ;.1 6.1
As you cun see Irom LIe ubove LubIe over qo% oI uII currencIes ure Lruded uguInsL
LIe US DoIIur. TIe Iour nexL mosL Lruded currencIes ure LIe Euro (EUR),
Jupunese Yen (JPY), Pound SLerIIng (GBP) und SwIss runc(CH). As currencIes
ure Lruded In puIrs und excIunged one Ior LIe oLIer wIen Lruded, LIe ruLe uL
wIIcI LIey ure excIunged Is cuIIed LIe excIunge ruLe. TIese Iour currencIes
Lruded uguInsL LIe US DoIIur muke up LIe mujorILy oI LIe murkeL und ure cuIIed
mujor currencIes or LIe mujors.
nLroducLIon Lo LIe OREX

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Market Mechanics
So now we know LIuL LIe X murkeL Is LIe IurgesL In LIe worId und LIuL your
broker or InsLILuLIon LIuL you ure LrudIng wILI Is coIIecLIng quoLes Irom u
cenLruIIzed Ieed or IndIvIduuI quoLes comprIsIng oI InLerbunk ruLes. So Iow ure
LIese quoLes mude up. WeII, us we prevIousIy menLIoned currencIes ure Lruded In
puIrs und ure eucI ussIgned u symboI. or LIe Jupunese Yen IL Is JPY, Ior LIe
Pounds SLerIIng IL Is GBP, Ior Euro IL Is EUR und Ior LIe SwIss runk IL Is CH.
So, EURJUSD wouId be Euro-DoIIur puIr. GBPJUSD wouId be pounds SLerIIng-
DoIIur puIr und USDJCH wouId be DoIIur-SwIss runc puIr und so on. You wIII
uIwuys see LIe USD quoLed IIrsL wILI Iew excepLIons sucI us Pounds SLerIIng,
EuroDoIIur, AusLruIIu DoIIur und New ZeuIund DoIIur. TIe IIrsL currency quoLed
Is cuIIed LIe buse currency. Huve u Iook beIow Ior some exumpIe.
Currency SymboI Currency PuIr
EURJUSD Euro J US DoIIur
GBPJUSD Pounds SLerIIngJ US DoIIur
USDJJPY US DoIIur J Jupunese Yen
USDJCH US DoIIur J SwIss runc
USDJCAD US DoIIur J CunudIun DoIIur
AUDJUSD AusLruIIun DoIIur J US DoIIur
NZDJUSD New ZeuIund DoIIur J US DoIIur
WIen you see X quoLes you wIII ucLuuIIy see Lwo numbers. TIe IIrsL number Is
cuIIed LIe bId und LIe second number Is cuIIed LIe oIIer (someLImes cuIIed LIe
ASK). I we use LIe EURJUSD us un exumpIe you mIgIL see o.qqoJo.qq LIe
IIrsL number o.qqo Is LIe bId prIce und Is LIe prIce Lruders ure prepured Lo buy
Euros uguInsL LIe USD DoIIur. TIe second number o.qq Is LIe oIIer prIce und Is
LIe prIce Lruders ure prepured Lo seII LIe Euro uguInsL LIe US DoIIur. TIese
quoLes ure someLImes ubbrevIuLed Lo LIe IusL Lwo dIgILs oI LIe currency sucI us
oJ. EucI broker Ius ILs own convenLIon und some wIII quoLe LIe IuII number
und oLIers wIII sIow onIy LIe IusL Lwo. You wIII uIso noLIce LIuL LIere Is u
nLroducLIon Lo LIe OREX

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dIIIerence beLween LIe bId und LIe oIIer prIce und LIuL Is cuIIed LIe spreud. or
LIe Iour mujor currencIes LIe spreud Is normuIIy gIve or Luke u pIp (wIII expIuIn
pIps IuLer)
To curry on Irom LIe symboI convenLIons und usIng our prevIous EUR quoLe oI
o.qqo bId, LIuL meuns LIuL 1 Euro = o.qqo US DoIIurs. n unoLIer exumpIe II
we used LIe USDJCAD 1.qoo LIuL wouId meun LIuL 1 US DoIIur = 1.qoo
CunudIun DoIIurs.
TIe mosL common IncremenL oI currencIes Is LIe PP. I LIe EURJUSD moves
Irom o.qo Lo o.q1 LIuL Is one PIp. A pIp Is LIe IusL decImuI pIuce oI u
quoLuLIon. TIe PIp or PONT us IL Is someLImes reIerred Lo dependIng on conLexL
Is Iow we wIII meusure our proIIL or Ioss.
As eucI currency Ius ILs own vuIue IL Is necessury Lo cuIcuIuLe LIe vuIue oI u pIp
Ior LIuL purLIcuIur currency. We uIso wunL u consLunL so we wIII ussume LIuL we
wunL Lo converL everyLIIng Lo US DoIIurs. n currencIes wIere LIe US DoIIur Is
quoLed IIrsL LIe cuIcuIuLIon wouId be us IoIIows.
ExumpIe JPY ruLe oI 116.; (noLIce LIe JPY onIy goes Lo Lwo decImuI pIuces, mosL
oI LIe oLIer currencIes Iuve Iour decImuI pIuces)
n LIe cuse oI LIe JPY 1 pIp wouId be .o1 LIereIore
USDJJPY: (.o1 dIvIded by excIunge ruLe = pIp vuIue) so .o1J116.;=o.oooo86 IL
Iooks IIke u bIg number buL IuLer we wIII dIscuss IoL (conLrucL) sIze.
USDJCH: (.ooo1 dIvIded by excIunge ruLe = pIp vuIue) so .ooo1J1.q8qo =
o.oooo6;
USDJCAD: (.ooo1 dIvIded by excIunge ruLe = pIp vuIue) so .ooo1J1.zz =
o.ooo1zz
nLroducLIon Lo LIe OREX

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n LIe cuse wIere LIe US DoIIur Is noL quoLed IIrsL und we wunL Lo geL Lo LIe US
DoIIur vuIue we Iuve Lo udd one more sLep.
EURJUSD: (o.ooo1 dIvIded by excIunge ruLe = pIp vuIue) so .ooo1Jo.q88; =
EUR o.ooo1o11 buL we wunL Lo geL buck Lo US DoIIurs so we udd unoLIer IILLIe
cuIcuIuLIon wIIcI Is EUR X ExcIunge ruLe so o.ooo1o11 X o.q88; = o.ooooqqq
wIen rounded up IL wouId be o.ooo1.
GBPJUSD: (o.ooo1 dIvIded by excIunge ruLe = pIp vuIue) so o.ooo1J1.o6 =
GBP o.oooo6qq buL we wunL Lo geL buck Lo US DoIIurs so we udd unoLIer IILLIe
cuIcuIuLIon wIIcI Is GBP X ExcIunge ruLe so o.oooo6qq X 1.o6 = o.ooooqq8
wIen rounded up IL wouId be o.ooo1.
By LIIs LIme you mIgIL be roIIIng your eyes buck und LIInkIng do reuIIy need Lo
work uII LIIs ouL und LIe unswer Is no. NeurIy uII LIe brokers you wIII deuI wILI
wIII work uII LIIs ouL Ior you. TIey muy Iuve sIIgILIy dIIIerenL convenLIons buL IL
Is uII done uuLomuLIcuIIy. L Is good Iowever Ior you Lo know Iow LIey work IL ouL.
n LIe nexL secLIon we wIII be dIscussIng Iow LIese seemIngIy InsIgnIIIcunL
umounLs cun udd up.
More on Market Mechanics
SpoL orex Is LrudILIonuIIy Lruded In IoLs uIso reIerred Lo us conLrucLs. TIe
sLundurd sIze Ior u IoL Is $1oo,ooo. n LIe IusL Iew yeurs u mInI IoL sIze Ius been
InLroduced oI $1o,ooo und LIIs uguIn muy cIunge In LIe yeurs Lo come. As we
menLIoned on LIe prevIous puge currencIes ure meusured In pIps, wIIcI Is LIe
smuIIesL IncremenL oI LIuL currency. To Luke udvunLuge oI LIese LIny IncremenLs IL
Is desIrubIe Lo Lrude Iurge umounLs oI u purLIcuIur currency In order Lo see uny
sIgnIIIcunL proIIL or Ioss. We sIuII cover Ieveruge IuLer buL Ior LIe LIme beIng IeL's
ussume we wIII be usIng $1oo,ooo IoL sIze. We wIII now recuIcuIuLe some
exumpIes Lo see Iow IL eIIecLs LIe pIp vuIue.
USDJJPY uL un excIunge ruLe oI 116.;
nLroducLIon Lo LIe OREX

Puge 8 oI zq
(.o1J116.;) X $1oo,ooo = $8.6 per pIp
USDJCH uL un excIunge ruLe oI 1.q8qo
(o.ooo1J1.q8qo) X $1oo,ooo = $6.; per pIp
n cuses wIere LIe US DoIIur Is noL quoLed IIrsL LIe IormuIu Is sIIgILIy dIIIerenL.
EURJUSD uL un excIunge ruLe oI o.q88;
(o.ooo1J o.q88;) X EUR 1oo,ooo = EUR 1o.11 Lo geL buck Lo US DoIIurs we udd u
IurLIer sLep
EUR 1o.11 X ExcIunge ruLe wIIcI Iooks IIke EUR 1o.11 X o.q88; = $q.qq;
rounded up wIII be $1o per pIp.
GBPJUSD uL un excIunge ruLe oI 1.o6
(o.ooo1J1.o6) X GBP 1oo,ooo = GBP 6.qq Lo geL buck Lo US DoIIurs we udd u
IurLIer sLep
GBP 6.qq X ExcIunge ruLe wIIcI Iooks IIke GBP 6.qq X 1.o6 = $q.q8886q
rounded up wIII be $1o per pIp.
As we suId eurIIer your broker muy Iuve u dIIIerenL convenLIon Ior cuIcuIuLIng pIp
vuIue reIuLIve Lo IoL sIze buL Iowever LIey do IL LIey wIII be ubIe Lo LeII you wIuL
LIe pIp vuIue Ior LIe currency you ure LrudIng Is uL LIuL purLIcuIur LIme.
Remember LIuL us LIe murkeL moves so wIII LIe pIp vuIue dependIng on wIuL
currency you Lrude.
So now we know Iow Lo cuIcuIuLe pIp vuIue IeLs Iuve u Iook uL Iow you work ouL
your proIIL or Ioss. eL's ussume you wunL Lo buy US DoIIurs und SeII Jupunese
Yen. TIe ruLe you ure quoLed Is 116.;oJ116.; becuuse you ure buyIng LIe US you
wIII be workIng on LIe 116.;, LIe ruLe uL wIIcI Lruders ure prepured Lo seII. So
you buy 1 IoL oI $1oo,ooo uL 116.;. A Iew Iours IuLer LIe prIce moves Lo 116.q
nLroducLIon Lo LIe OREX

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und you decIde Lo cIose your Lrude. You usk Ior u new quoLe und ure quoLed
116.qJ11;.oo us you ure now cIosIng your Lrude und you InILIuIIy bougIL Lo enLer
LIe Lrude you now seII In order Lo cIose LIe Lrude und you Luke 116.q LIe prIce
Lruders ure prepured Lo buy uL. TIe dIIIerence beLween 116.; und 116.q Is .zo or
zo pIps. UsIng our IormuIu Irom beIore, we now Iuve (.o1J116.q) X $1oo,ooo =
$8. per pIp X zo pIps =$1;1
n LIe cuse oI LIe EURJUSD you decIde Lo seII LIe EUR und ure quoLed
o.q88Jo.q8qo you Luke o.q88. Now don'L geL conIused Iere. Remember you
ure now seIIIng und you need u buyer. TIe buyer Is bIdIng o.q88 und LIuL Is wIuL
you Luke. A Iew Iours IuLer LIe EUR moves Lo o.q8o und you usk Ior u quoLe.
You ure quoLed o.q8oJo.q81o und you Luke o.q81o. You orIgInuIIy soId EUR Lo
open LIe Lrude und now Lo cIose LIe Lrude you musL buy buck your posILIon. n
order Lo buy buck your posILIon you Luke LIe prIce Lruders ure prepured Lo seII uL
wIIcI Is o.q81o. TIe dIIIerence beLween o.q81o und o.q88 Is o.oo; or ; pIps.
UsIng LIe IormuIu Irom beIore, we now Iuve (.ooo1Jo.q81o) X EUR 1oo,ooo =
EUR1o.1q: EUR 1o.1q X ExcIunge ruLe o.q81o =$q.qq($1o) so ; X $1o = $;o.

To reILeruLe wIuL Ius gone beIore, wIen you enLer or exIL u Lrude uL some poInL
your ure subjecL Lo LIe spreud In LIe bIdJoIIer quoLe. As u ruIe oI LIumb wIen you
buy u currency you wIII use LIe oIIer prIce und wIen you seII you wIII use LIe bId
prIce. So wIen you buy u currency you puy LIe spreud us you enLer LIe Lrude buL
noL us you exIL und wIen you seII u currency you puy no spreud wIen you enLer
buL onIy wIen you exIL.
Leverage
everuge IInunced wILI credIL, sucI us LIuL purcIused on u murgIn uccounL Is very
common In orex. A murgIned uccounL Is u Ieveruge ubIe uccounL In wIIcI orex
cun be purcIused Ior u combInuLIon oI cusI or coIIuLeruI dependIng wIuL your
brokers wIII uccepL. TIe Ioun(Ieveruge) In LIe murgIned uccounL Is coIIuLeruIIzed
nLroducLIon Lo LIe OREX

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by your InILIuI murgIn (deposIL), II LIe vuIue oI LIe Lrude (posILIon) drops
suIIIcIenLIy, LIe broker wIII usk you Lo eILIer puL In more cusI, or seII u porLIon oI
your posILIon or even cIose your posILIon. MurgIn ruIes muy be reguIuLed In some
counLrIes, buL murgIn requIremenLs und InLeresL vury umong brokerJdeuIers so
uIwuys cIeck wILI LIe compuny you ure deuIIng wILI Lo ensure you undersLund
LIeIr poIIcy.
Up unLII LIIs poInL you ure probubIy wonderIng Iow u smuII InvesLor cun Lrude
sucI Iurge umounLs oI money (posILIons). TIe umounL oI Ieveruge you use wIII
depend on your broker und wIuL you IeeI comIorLubIe wILI. TIere wus u LIme
wIen IL wus dIIIIcuIL Lo IInd compunIes prepured Lo oIIer murgIned uccounLs buL
nowuduys you cun geL Ieveruge Irom u IIgI us 1% wILI some brokeruges. TIIs
meuns you couId conLroI $1oo,ooo wILI onIy $1,ooo
TypIcuIIy LIe broker wIII Iuve u mInImum uccounL sIze uIso known us uccounL
murgIn or InILIuI murgIn e.g. $1o,ooo. Once you Iuve deposILed your money you
wIII LIen be ubIe Lo Lrude. TIe broker wIII uIso sLIpuIuLe Iow mucI LIey requIre
per posILIon (IoL) Lruded. n LIe exumpIe ubove Ior every $1,ooo you Iuve you cun
Luke u IoL oI $1oo,ooo so II you Iuve $,ooo LIey muy uIIow you Lo Lrude up Lo
$oo,oo oI orex.
TIe mInImum securILy (MurgIn) Ior eucI IoL wIII very Irom broker Lo broker. n
LIe exumpIe ubove LIe broker requIred u one percenL murgIn. TIIs meuns LIuL Ior
every $1oo,ooo Lruded LIe broker wunLed $1,ooo us securILy on LIe posILIon.
MurgIn cuII Is uIso someLIIng LIuL you wIII Iuve Lo be uwure oI. I Ior uny reuson
LIe broker LIInks LIuL your posILIon Is In dunger e.g. you Iuve u posILIon oI
$1oo,ooo wILI u murgIn oI one percenL ($1,ooo) und your Iosses ure upproucIIng
your murgIn ($1,ooo). He wIII cuII you und eILIer usk you Lo deposIL more money,
or cIose your posILIon Lo IImIL your rIsk und IIs rIsk. I you ure goIng Lo Lrude on u
murgIn uccounL IL Is ImperuLIve LIuL you LuIk wILI your broker IIrsL Lo IInd ouL
wIuL LIeIr poIIces ure on LIIs Lype oI uccounLs.
nLroducLIon Lo LIe OREX

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VurIuLIon MurgIn Is uIso very ImporLunL. VurIuLIon murgIn Is LIe umounL oI proIIL
or Ioss your uccounL Is sIowIng on open posILIons. eL's suy you Iuve jusL
deposILed $1o,ooo wILI your broker. You Luke IoLs oI USDJJPY wIIcI Is
$oo,ooo. To secure LIIs LIe broker needs $,ooo (1%). TIe Lrude goes bud und
your Iosses equuI $oo1, your broker muy do u murgIn cuII. TIe reuson Ie muy do
u murgIn cuII Is LIuL even LIougI you sLIII Iuve $q,qqq In your uccounL LIe broker
needs LIuL us securILy und uIIowIng you Lo use IL couId endunger yourseII und IIm.
AnoLIer wuy Lo Iook uL IL Is LIIs, II you Iuve un uccounL oI $1o,ooo und you Iuve u
1 IoL ($1oo,ooo) posILIon. TIuL's $1,ooo ussumIng u (1% murgIn) Is no Ionger
uvuIIubIe Ior you Lo Lrude. TIe money sLIII beIongs Lo you buL Ior LIe LIme you ure
murgIned LIe broker needs LIuL us securILy. AnoLIer poInL oI noLe Is LIuL some
brokers muy requIre u IIgIer murgIn uL LIe weekends. TIIs muy Luke LIe Iorm oI
1% murgIn durIng LIe week und II you InLend Lo IoId LIe posILIon over LIe
weekend IL muy rIse Lo z% or IIgIer. AIso In LIe exumpIe we Iuve used u 1%
murgIn. TIIs Is by no meuns sLundurd. Iuve seen us IIgI us o.% und muny
beLween %-% murgIn. L uII depends on your broker.
TIere Iuve been muny dIscussIons on LIe LopIc oI murgIn und some urgue LIuL
Loo mucI murgIn Is dungerous. TIIs Is u poInL Ior LIe IndIvIduuI concerned. TIe
ImporLunL LIIng Lo remember us wILI uII LrudIng Is LIuL you LIorougIIy
undersLund your brokers poIIcIes on LIe subjecL und you ure comIorLubIe wILI
und undersLund your rIsk.
Rollovers
Even LIougI LIe mIgILy US domInuLes muny murkeLs mosL oI SpoL orex Is sLIII
Lruded LIrougI ondon In GreuL BrILuIn. So Ior our nexL descrIpLIon we sIuII use
ondon LIme. MosL deuIs In orex ure done us SpoL deuIs. SpoL deuIs ure neurIy
uIwuys due Ior seLLIemenL Lwo busIness duys duy IuLer. TIIs Is reIerred Lo us LIe
vuIue duLe or deIIvery duLe. On LIuL duLe LIe counLerpurLIes Luke deIIvery oI LIe
currency LIey Iuve soId or bougIL.
nLroducLIon Lo LIe OREX

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n SpoL X LIe mujorILy oI LIe LIme LIe end oI LIe busIness duy Is z1:q (ondon
LIme). Any posILIons sLIII open uL LIIs LIme ure uuLomuLIcuIIy roIIed over Lo LIe
nexL busIness duy, wIIcI uguIn IInIsIes uL z1:q. TIIs Is necessury Lo uvoId LIe
ucLuuI deIIvery oI LIe currency. As SpoL X Is predomInunLIy specuIuLIve mosL oI
LIe LIme LIe Lrudes never wIsI Lo ucLuuIIy Luke deIIvery oI LIe ucLuuI currency.
TIey wIII InsLrucL LIe brokeruge Lo uIwuys roIIover LIeIr posILIon. Muny oI LIe
brokers nowuduys do LIIs uuLomuLIcuIIy und IL wIII be In LIeIr poIIces und
procedures. TIe ucL oI roIIIng LIe currency puIr over Is known us Lom.nexL wIIcI,
sLunds Ior Lomorrow und LIe nexL duy. JusL Lo go over LIIs uguIn, your broker wIII
uuLomuLIcuIIy roIIover your posILIon unIess you InsLrucL IIm LIuL you ucLuuIIy
wunL deIIvery oI LIe currency. AnoLIer poInL noLIng Is LIuL mosL Ieveruged
uccounLs ure unubIe Lo ucLuuI deIIver oI LIe currency us LIere Is InsuIIIcIenL
cupILuI LIere Lo cover LIe LrunsucLIon.
Remember LIuL II you ure LrudIng on murgIn, you Iuve In eIIecL goL u Ioun Irom
your broker Ior LIe umounL you ure LrudIng. I you Iud u 1 IoL posILIon you broker
Ius udvunced you LIe $1oo,ooo even LIougI you dId noL ucLuuIIy Iuve $1oo,ooo.
TIe broker wIII normuIIy cIurge you LIe InLeresL dIIIerenLIuI beLween LIe Lwo
currencIes II you roIIover your posILIon. TIIs normuIIy onIy Iuppens II you Iuve
roIIed over LIe posILIon und noL II you open und cIose LIe posILIon wILIIn LIe
sume busIness duy.
To cuIcuIuLe LIe broker's InLeresL Ie wIII normuIIy cIose your posILIon uL LIe end
oI LIe busIness duy und uguIn reopen u new posILIon uImosL sImuILuneousIy. You
open u 1 IoL ($1oo,ooo) EURJUSD posILIon on Monduy 1LI uL 11:oo uL un
excIunge ruLe oI o.qqo. DurIng LIe duy LIe ruLe IIucLuuLes und uL zz:oo LIe ruLe
Is o.qq;. TIe broker cIoses your posILIon und reopens u new posILIon wILI u
dIIIerenL vuIue duLe. TIe new posILIon wus opened uL o.qq;6 u 1 pIp dIIIerence.
TIe 1 pIp deIerence reIIecLs LIe dIIIerence In InLeresL ruLes beLween LIe US DoIIur
und LIe Euro. n our exumpIe your ure Iong Euro und sIorL US DoIIur. As LIe US
DoIIur In LIe exumpIe Ius u IIgIer InLeresL ruLe LIun LIe Euro you puy LIe
premIum oI 1 pIp.
nLroducLIon Lo LIe OREX

Puge 1 oI zq
Now LIe good news. I you Iud LIe reverse posILIon und you were sIorL Euros und
Iong US DoIIurs you wouId guIn LIe InLeresL dIIIerenLIuI oI 1 pIp. I LIe IIrsL numed
currency Ius un overnIgIL InLeresL ruLe Iower LIun LIe second currency LIen you
wIII puy LIuL InLeresL dIIIerenLIuI II you bougIL LIuL currency. I LIe IIrsL numed
currency Ius u IIgIer InLeresL ruLe LIun LIe second currency LIen you wIII guIn
LIe InLeresL dIIIerenLIuI.
To sImpIIIy LIe ubove, II you ure Iong (bougIL) u purLIcuIur currency und LIuL
currency Ius u IIgIer overnIgIL InLeresL ruLe you wIII guIn. I you ure sIorL (soId)
LIe currency wILI u IIgIer overnIgIL InLeresL ruLe LIen you wIII Iose LIe
dIIIerence.
wouId IIke Lo empIusIs Iere LIuL uILIougI we ure goIng u IILLIe In-depLI Lo
expIuIn Iow uII LIIs works, your broker wIII cuIcuIuLe uII LIIs Ior you. TIe purpose
oI LIIs book Is jusL Lo gIve you un overvIew oI Iow LIe orex murkeL works.
Accounts
AILIougI LIe movemenL Loduy Is Lowurds uII LrunsucLIon evenLuuIIy IInIsIIng In u
proIIL und Ioss In US DoIIurs IL Is ImporLunL Lo reuIIze LIuL your proIIL or Ioss muy
noL ucLuuIIy be In US DoIIurs. rom my observuLIon LIe Lrend Is more pronounced
In LIe US us you wouId expecL. MosL US bused Lruders ussume LIey wIII see LIeIr
buIunce uL LIe end oI eucI duy In US DoIIurs. Iuve even spoken wILI some
Lruders wIo ure obIIvIous Lo LIe IucL LIe LIeIr proIIL mIgIL Iuve ucLuuIIy been In
Jupunese Yen.
eL me expIuIn u IILLIe more. You seII (go sIorL) USDJJPY und us sucI ure sIorL
USD und ong (bougIL) JPY. You enLer LIe Lrude uL 116.1o und exIL 116.qo. You In
IucL mude 8o,ooo Jupunese Yen (1 IoL Lruded) noL US DoIIurs. I you Lruded uII
Iour mujor currencIes uguInsL LIe US DoIIur you wouId In IucL Iuve mude or Iose
In EUR, GPY, JPY und CH. TIIs mIgIL gIve you u Iedger buIunce uL LIe end oI
LIe duy or monLI wILI Iour dIIIerenL currencIes. TIIs Is common In ondon. TIey
wIII sLuy In LIuL currency unLII you InsLrucL LIe broker Lo excIunge LIe currency
nLroducLIon Lo LIe OREX

Puge 1q oI zq
you Iuve u proIIL or Ioss InLo your own buse currency. TIIs ucLuuIIy Iuppened Lo
me. AILer deuIIng wILI muInIy US bused brokers IL Iud never occurred Lo me LIuL
my sLuLemenL wouId be In unyLIIng oLIer LIun US DoIIurs. TIIs cun work Ior you
or uguInsL you dependIng on LIe ruLe oI excIunge wIen you cIunge buck InLo
your Iome currency. Once knew LIe convenLIon sImpIy InsLrucLed LIe broker
Lo cIunge my proIIL or Ioss InLo US DoIIurs wIen cIosed my posILIon. L Is worLI
cIeckIng Iow your broker upproucIes LIIs und sImpIy usk LIem Iow LIey IundIe
IL. L`s u smuII poInL buL worLI noLIng.
L's u sud IucL LIuL Ior muny yeurs LIe orex murkeL IurgeIy remuIned unreguIuLed.
Even Loduy LIere ure muny counLrIes LIuL sLIII don'L reguIuLe compunIes LIuL Lrude
orex. ondon Ius been reguIuLed Ior muny yeurs und LIe US Is now geLLIng ILs
ucL LogeLIer und Ius uIso sLurLed reguIuLIng compunIes deuIIng orex. L wus onIy
recenLIy In LIe US you couId wILI no more LIun un nLerneL sILe und u Iew
LIousund doIIurs seL up your own orex operuLIon und gIve LIe ImpressIon LIuL
you were Iurger LIun you ure. um uII Ior LIe enLrepreneurIuI IIuIr und everyone
need Lo sLurL somewIere buL wIen deuIIng wILI peopIe's money IL Is ImperuLIve
LIuL LIe compuny you cIoose Is soIId.
PreIerubIy you wunL u compuny LIuL Is reguIuLed In LIe counLry LIuL IL operuLes,
Insured or bonded und Ius some kInd oI Lruck recorded. cunnoL udvIse you on
wIIcI broker you sIouId use us LIere ure jusL Lo muny vurIubIes Lo eucI person,
buL us u ruIe oI LIumb, neurIy uII counLrIes Iuve some kInd oI reguIuLory uuLIorILy
wIo wIII be ubIe Lo udvIse you. MosL oI LIe reguIuLory uuLIorILIes wIII Iuve u IIsL
oI brokers LIuL IuII wILI LIeIr jurIsdIcLIon und wIII gIve you u IIsL. TIey probubIy
wonL LeII wIom Lo use buL uL IeusL II LIe IIsL cume Irom LIem you cun Iuve some
conIIdence In LIose compunIes. Once you Iuve u IIsL gIve u Iew oI LIem u cuII, see
wIo you IeeI comIorLubIe wILI, usk Ior LIem Lo send you LIeIr poIIces und
procedures. I you IIve neur wIere your broker Is bused, go spend LIe duy wILI
IIm. Iuve been Lo muny brokeruges jusL Lo cIeck LIem ouL. L wIII gIve you u
cIunce Lo see LIeIr operuLIon und meeL LIeIr Leum.
nLroducLIon Lo LIe OREX

Puge 1 oI zq
TIIs brIngs up unoLIer InLeresLIng poInL. WIen you open un uccounL wILI u
broker you wIII Iuve Lo IIII In some Iorms busIcuIIy sLuLIng your uccepLunce oI
LIeIr poIIces. TIIs cun runge Irom u 1 puge documenL Lo someLIIng resembIIng u
book. Tuke LIe LIme Lo reud LIrougI LIese documenLs und muke u IIsL oI LIIngs
you don'L undersLund or wunL expIuIned. MosL repuLubIe compunIes wIII be Iuppy
Lo spend some LIme wILI you on LIIs. Your InvoIvemenL wILI your broker Is
IurgeIy up Lo you. As u orex Lruder you wIII probubIy spend Iong Iours sLurIng uL
LIe screen wILIouL LuIkIng Lo unyone. You muy be LIe sorL oI person wIo IIkes LIIs
or you muy be LIe sorL oI person wIo IIkes Lo cIuL wILI LIe deuIer In LIe LrudIng
room. You wIII normuIIy geL u cuII once u week or once u monLI Irom someone In
LIe brokeruge uskIng II everyLIIng Is OK.
Statements
BeIore we move on Lo uccounL sLuLemenLs jusL wunL Lo LoucI on segreguLIon oI
Iunds. n LImes pusL LIere wus u dunger LIuL Lruders wIo deposILed money wILI
LIeIr broker wIo dId noL segreguLe LIeIr cIIenLs money Irom LIeIr own compunIes
money were uL some rIsk. TIe probIem urose II LIe broker mIsused LIe deposILed
Iunds Lo eILIer reInvesL or oLIerwIse munIpuIuLed LIese deposILs Lo enIunce LIeIr
own sLundIng. TIere were uIso InsLunces were LIe broker becume InsoIvenL und
muny compIIcuLIons ensued us Lo wIuL wus LIe cIIenLs money und wIuL wus LIe
broker's money. WILI LIe udvenL oI reguIuLIon mosL broker now segreguLe LIeIr
cIIenLs Iunds Irom LIe brokeruge Iunds. DeposILs ure normuIIy IeId wILI bunks or
oLIer Iurge IInuncIuI InsLILuLIon LIuL ure uIso reguIuLed und bonded or Insured.
TIIs proLecLs you money sIouId unyLIIng Iuppen Lo your broker. TIe deposIL
LukIng InsLILuLIon Is normuIIy uwure LIuL LIese deposILs ure cIIenL's Iunds.
DependIng on reguIuLIon In LIe purLIcuIur counLry you IIve, eucI cIIenL muy Iuve
LIeIr own segreguLed uccounL or Ior smuIIer deposILors LIey muy be pooIed. TIe
poInL Is LIuL segreguLIon oI Iunds Is u suIeguurd. Ask your broker II your Iunds ure
segreguLed und wIo ucLuuIIy Ius your money.
nLroducLIon Lo LIe OREX

Puge 16 oI zq
JusL us wILI u bunk you sIouId ure enLILIed Lo InLeresL on LIe money you Iuve on
deposIL. Some broker muy sLIpuIuLe LIuL InLeresL Is onIy puyubIe on uccounLs over
u cerLuIn umounL buL LIe Lrend Loduy Is LIuL you wIII eurn InLeresL on uny umounL
you Iuve LIuL Is noL beIng used Lo cover your murgIn. Your broker Is probubIy noL
LIe mosL compeLILIve pIuce Lo eurn InLeresL buL LIuL sIouId noL be LIe poInL oI
IuvIng your money wILI IIm In LIe IIrsL pIuce. PuymenL on your uccounL LIuL Is
noL beIng used und segreguLIon oI Iunds uII go Lo sIow LIe repuLubIIILy oI LIe
compuny you ure deuIIng wILI.
n LIIs secLIon wIII dIscuss brIeIIy LIe busIc uccounL sLuLemenL. Iuve Lo keep
LIIs busIc us LIere ure us muny IIuvors oI uccounL sLuLemenLs us you cun ImugIne.
JusL ubouL every broker Ius LIeIr own wuy oI presenLIng LIIs. TIe mosL ImporLunL
LIIng Is Lo know wIere you sLund uL LIe end oI eucI duy or week. JusL becuuse
your broker Is nLerneL bused und Ius uII LIe beIIs und wIIsLIes does noL meun
LIey ure InIuIIIbIe. Muny oI LIe ucLIons Luken beIore InIormuLIon Is ImpuLed ure
sLIII done by Iund und II Iumuns ure InvoIved LIere wIII be u mIsLuke uL some
poInL. TIe responsIbIIILy IIes wILI you. L Is your money so muke sure LIuL uII LIe
LrunsucLIons ure correcL.
X Some Compuny
New York
SLuLemenL Ior: Mr. Joe BIoggs
SLuLemenL DuLe: 16LI JuIy zooz
AccounL No: 1zq6
Summury OI AII Trudes rom: 1Jo;Joz-1;Jo;Joz
TIckeL No TIme Trude DuLe VuIue DuLe BJS SymboI QuunLILy RuLe DebIL CredIL
BuIunce
1zq8 oq:o 1Jo;Jzooz 1;Jo;Joz B EURJUSD 1oo,ooo o.q8o $1o,ooo
1zqq 1:o1 1Jo;Jzooz 1;Jo;Joz S EURJUSD 1oo,ooo o.q8;o $zoo.oo
$1o,zoo
1zq6o 1q:o 16Jo;Jzooz 18Jo;Joz S USDJJPY 1oo,ooo 116.8 $1o,zoo
ToLuI EquILy $1o,zoo
MurgIn AvuIIubIe $q,zoo
MurgIn RequIremenLs $1,ooo
CurrenL PosILIon SIorL USDJJPY
nLroducLIon Lo LIe OREX

Puge 1; oI zq
NormuIIy LIere Is u LIckeL or dockeL number Lo IeIp IdenLIIy LIe Lrude. You wIII
neurIy uIwuys IInd LIe LIme und duLe oI LIe Lrude. TIe vuIue duLe II LIe currency
were Lo be deIIvered. You sIouId uIwuys see LIe dIrecLIon oI LIe Lrude, buy or seII
(ong or SIorL). TIe umounL und ruLe you bougIL or soId, buIunce Lo IeL you know
II you mude u proIIL or u Ioss. You sIouId uIso see uny open posILIons you muy
Iuve und LIe murgIn requIremenLs Ior LIuL posILIon. A IoL oI LIe more modern
sysLems wIII sIow your open posILIon us LIougI IL Ius been cIosed jusL Lo gIve you
un up Lo LIe mInuLe buIunce.
nLroducLIon Lo LIe OREX

Puge 18 oI zq
The Main Players
CenLruI Bunks und GovernmenLs
PoIIcIes LIuL ure ImpIemenLed by governmenLs und cenLruI bunks cun pIuy u
mujor roII In LIe X murkeL. CenLruI bunks cun pIuy un ImporLunL purL In
conLroIIIng LIe counLry's money suppIy Lo Insure IInuncIuI sLubIIILy.
Bunks
A Iurge purL oI X Lurnover Is Irom bunks. urge bunks cun IILeruIIy Lrude bIIIIons
oI doIIurs duIIy. TIIs cun Luke LIe Iorm oI u servIce Lo LIeIr cusLomers or LIey
LIemseIves specuIuLe on LIe X murkeL.
Hedge unds
As we know LIe X murkeL cun be exLremeIy IIquId wIIcI Is wIy IL cun be
desIrubIe Lo Lrude. Hedge unds Iuve IncreusIngIy uIIocuLed porLIons oI LIeIr
porLIoIIos Lo specuIuLe on LIe X murkeL. AnoLIer udvunLuge Hedge unds cun
uLIIIze Is u mucI IIgIer degree oI Ieveruge LIun wouId LypIcuIIy be Iound In LIe
equILy murkeLs.
CorporuLe BusInesses
TIe X murkeL muInsLuy Is LIuL oI InLernuLIonuI Lrude. Muny compunIes Iuve Lo
ImporL or exporLs goods Lo dIIIerenL counLrIes uII uround LIe worId. PuymenL Ior
LIese goods und servIces muy be mude und receIved In dIIIerenL currencIes. Muny
bIIIIons oI doIIurs ure excIunges duIIy Lo IucIIILuLe Lrude. TIe LImIng oI LIose
LrunsucLIons cun drumuLIcuIIy uIIecL u compuny's buIunce sIeeL.
TIe Mun n TIe SLreeL
AILIougI you muy noL LIInk IL LIe mun In LIe sLreeL uIso pIuys u purL In Loudy's X
worId. Every LIme Ie goes on IoIIduy overseus Ie normuIIy need Lo purcIuse LIuL
counLry's currency und uguIn cIunge IL buck InLo IIs own currency once Ie
nLroducLIon Lo LIe OREX

Puge 1q oI zq
reLurns. UnwILLIngIy Ie Is In IucL LrudIng currencIes. He muy uIso purcIuse goods
und servIces wIIIsL overseus und IIs credIL curd compuny Ius Lo converL LIose
suIes buck InLo IIs buse currency In order Lo cIurge IIm.
SpecuIuLors And nvesLors
We sIuII dIIIerenLIuLe specuIuLor Irom InvesLors Iere wILI LIe deIInILIon LIuL un
InvesLor Ius u mucI Ionger LIme IorIzon In wIIcI Ie expecLs IIs InvesLmenL Lo
yIeId u proIIL. RegurdIess oI LIe dIIIerence boLI specuIuLors und InvesLors wIII
upproucI LIe X murkeL Lo expIoIL LIe movemenL In currency puIrs. TIey boLI
wIII Iuve LIeIr reuson Ior beIIevIng u purLIcuIur currency wIII perIorm beLLer or
worse us LIe cuse muy be und wIII buy or seII uccordIngIy. TIey muy decIde LIuL
LIe Euro wIII upprecIuLe uguInsL LIe US DoIIur und Luke wIuL Is cuIIed u Iong
posILIon In Euro. I LIe Euro does In IucL guIn ground uguInsL LIe US DoIIur LIey
wIII Iuve mude u proIIL.
BeIow you wIII IInd u IIsL oI CenLruI Bunks. ( Source ILLp:JJwww.bIs.org )
AIbunIu: Bunk oI AIbunIu
AIgerIu: Bunk oI AIgerIu
ArgenLInu: Bunco CenLruI de Iu RepubIIcu ArgenLInu
ArmenIu: CenLruI Bunk oI ArmenIu
Arubu: CenLruIe Bunk vun Arubu
AusLruIIu: Reserve Bunk oI AusLruIIu
AusLrIu: OesLerreIcIIscIe NuLIonuIbunk
AzerbuIjun: NuLIonuI Bunk oI AzerbuIjun
BuIumus: CenLruI Bunk oI TIe BuIumus
BuIruIn: BuIruIn MoneLury Agency
BungIudesI: BungIudesI Bunk
Burbudos: CenLruI Bunk oI Burbudos
BeIurus: NuLIonuI Bunk oI LIe RepubIIc oI BeIurus
BeIgIum: NuLIonuIe Bunk vun BeIgIe - Bunque NuLIonuIe de BeIgIque
BenIn: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
BoIIvIu: Bunco CenLruI de BoIIvIu
BosnIu: CenLruI Bunk oI BosnIu und HerzegovInu
BoLswunu: Bunk oI BoLswunu
BruzII: Bunco CenLruI do BrusII
BuIgurIu: BuIgurIun NuLIonuI Bunk
BurkInu uso: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
nLroducLIon Lo LIe OREX

Puge zo oI zq
Cunudu: Bunk oI Cunudu - Bunque du Cunudu
Cuymun sIunds: Cuymun sIunds MoneLury AuLIorILy
CIIIe: Bunco CenLruI de CIIIe
CIInu: TIe PeopIe's Bunk oI CIInu
CoIombIu: Bunco de Iu RepubIIcu
CosLu RIcu: Bunco CenLruI de CosLu RIcu
CLe d'voIre: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
CrouLIu: CrouLIun NuLIonuI Bunk
Cyprus: CenLruI Bunk oI Cyprus
CzecI Rep.: Cesku NurodnI Bunku
Denmurk: Dunmurks NuLIonuIbunk
DomInIcun Rep.: Bunco CenLruI de Iu RepubIIcu DomInIcunu
EusL CurIbbeun ureu: TIe EusL CurIbbeun CenLruI Bunk
Ecuudor: Bunco CenLruI deI Ecuudor
EgypL: CenLruI Bunk oI EgypL
EI SuIvudor: TIe CenLruI Reserve Bunk oI EI SuIvudor
EsLonIu: EesLI Punk
Europeun UnIon: Europeun CenLruI Bunk
IjI: Reserve Bunk oI IjI
InIund: Suomen PunkkI
runce: Bunque de runce
GeorgIu: NuLIonuI Bunk oI GeorgIu
Germuny: DeuLscIe Bundesbunk
GIunu: Bunk oI GIunu
Greece: Bunk oI Greece
GuuLemuIu: Bunco de GuuLemuIu
GuIneu BIssuu: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
Hondurus: Bunco CenLruI de Hondurus
Hong Kong: Hong Kong MoneLury AuLIorILy
Hungury: NuLIonuI Bunk oI Hungury
ceIund: CenLruI Bunk oI ceIund
ndIu: Reserve Bunk oI ndIu
ndonesIu: Bunk oI ndonesIu
reIund: CenLruI Bunk oI reIund
srueI: Bunk oI srueI
LuIy: Buncu d'LuIIu
JumuIcu: Bunk oI JumuIcu
Jupun: Bunk oI Jupun
Jordun: CenLruI Bunk oI Jordun
KuzukIsLun: NuLIonuI Bunk oI KuzukIsLun
Kenyu: CenLruI Bunk oI Kenyu
Koreu: Bunk oI Koreu
KuwuIL: CenLruI Bunk oI KuwuIL
KyrgyzsLun: NuLIonuI Bunk oI LIe Kyrgyz RepubIIc
uLvIu: Bunk oI uLvIu
ebunon: Bunque du Ibun
nLroducLIon Lo LIe OREX

Puge z1 oI zq
ILIuunIu: IeLuvos Bunkus
uxembourg: Bunque CenLruIe du uxembourg
MucedonIu: NuLIonuI Bunk oI LIe RepubIIc oI MucedonIu
MuIuysIu: Bunk Neguru MuIuysIu
MuIuwI: Reserve Bunk oI MuIuwI
MuII: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
MuILu: CenLruI Bunk oI MuILu
MuurILIus: Bunk oI MuurILIus
MexIco: Bunco de MexIco
MoIdovu: TIe NuLIonuI Bunk oI MoIdovu
MongoIIu: TIe Bunk oI MongoIIu
Morocco: Bunk AI-MugIrIb
MozumbIque: Bunk oI MozumbIque
NumIbIu: Bunk oI NumIbIu
NepuI: NepuI RusLru Bunk
NeLIerIunds: De NederIundscIe Bunk
NeLIerIunds AnLIIIes: Bunk vun de NederIundse AnLIIIen
New ZeuIund: Reserve Bunk oI New ZeuIund
NIcuruguu: Bunco CenLruI de NIcuruguu
NIger: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
NIgerIu: CenLruI Bunk oI NIgerIu
Norwuy: Norges Bunk
Omun: CenLruI Bunk oI Omun
PukIsLun: SLuLe Bunk oI PukIsLun
Pupuu New GuIneu: Bunk oI Pupuu New GuIneu
Puruguuy: Bunco CenLruI deI Puruguuy
Peru: Bunco CenLruI de Reservu deI Peru
PIIIIppInes: Bungko SenLruI ng PIIIpInus
PoIund: NuLIonuI Bunk oI PoIund
PorLuguI: Bunco de PorLuguI
QuLur: QuLur CenLruI Bunk
RomunIu: NuLIonuI Bunk oI RomunIu
RussIu: CenLruI Bunk oI RussIu
Rwundu: Bunque NuLIonuIe du Rwundu
SuudI ArubIu: SuudI ArubIun MoneLury Agency
SeneguI: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
SIerru eone: Bunk oI SIerru eone
SIngupore: MoneLury AuLIorILy oI SIngupore
SIovukIu: NuLIonuI Bunk oI SIovukIu
SIovenIu: Bunk oI SIovenIu
SouLI AIrIcu: SouLI AIrIcun Reserve Bunk
SpuIn: Bunco de Espuu
SrI unku: CenLruI Bunk oI SrI unku
Sudun: Bunk oI Sudun
SurInume: CenLruIe Bunk vun SurInume
Sweden: SverIges RIksbunk
nLroducLIon Lo LIe OREX

Puge zz oI zq
SwILzerIund: ScIweIzerIscIe NuLIonuIbunk
TunzunIu: Bunk oI TunzunIu
TIuIIund: Bunk oI TIuIIund
Togo: Bunque CenLruIe des ELuLs de I'AIrIque de I'OuesL
TrInIdud und Tobugo: CenLruI Bunk oI TrInIdud und Tobugo
TunIsIu: Bunque CenLruIe de TunIsIe
Turkey: TrkIye CumIurIyeL Merkez BunkusI
UkruIne: NuLIonuI Bunk oI UkruIne
UnILed Arub EmIruLes: CenLruI Bunk oI UnILed Arub EmIruLes
UnILed KIngdom: Bunk oI EngIund
UnILed SLuLes: Bourd oI Governors oI LIe ederuI Reserve SysLem
(WusIIngLon)
ederuI Reserve Bunk oI New York
VenezueIu: Bunco CenLruI de VenezueIu
Yemen: CenLruI Bunk oI Yemen
YugosIuvIu: NuLIonuI Bunk oI YugosIuvIu
ZumbIu: Bunk oI ZumbIu
ZImbubwe: Reserve bunk oI ZImbubwe
What Next
WeII now we Iuve u busIc undersLundIng oI Iow LIe X murkeL works und wIo
LIe muIn pIuyers ure, wIuL nexL? You ure now goIng Lo Iuve Lo decIde LIe besL
wuy Lo Lrude LIe murkeL. TIe Lwo mosL common upproucIes ure LIuL oI
IundumenLuI unuIysIs und LecInIcuI unuIysIs.
undumenLuI unuIysIs concenLruLes on LIe Iorces oI suppIy und demund Ior u
gIven securILy. TIIs upproucI exumInes uII LIe IucLors LIuL deLermIne LIe prIce oI
u securILy und LIe reuI vuIue oI LIuL securILy. TIIs Is reIerred Lo us LIe InLrInsIc
vuIue. I LIe InLrInsIc vuIue Is beIow LIe murkeL prIce LIen LIere Is un opporLunILy
Lo buy und II LIe murkeL Is ubove LIe InLrInsIc prIce LIen LIere Is un opporLunILy
Lo seII.
TecInIcuI unuIysIs Is LIe sLudy oI murkeL ucLIon, muInIy LIrougI LIe use oI cIurLs
und IndIcuLors Lo IorecusL LIe IuLure prIce oI u securILy. TIere ure LIree muIn
poInLs LIuL u LecInIcuI unuIysL uppIIes.
A. MurkeL ucLIon dIscounLs everyLIIng. RegurdIess oI wIuL LIe IundumenLuIs ure
suyIng, LIe prIce you see Is LIe prIce you geL.
nLroducLIon Lo LIe OREX

Puge z oI zq
B. TIe prIce oI u gIven securILy moves In Lrends.
C. TIe IIsLorIcuI Lrend oI u securILy wIII Lend Lo repeuL.
OI uII oI LIe ubove LIIngs LIe mosL ImporLunL oI LIem Is poInL A. TIe LooIs oI LIe
LecInIcuI unuIysL ure IndIcuLors, puLLerns und sysLems. TIese LooIs ure uppIIed Lo
cIurLs. MovIng uveruges, supporL und resIsLunce IInes, enveIopes, BoIIInger bunds
und momenLum ure uII exumpIes oI IndIcuLors.
TIere ure muny wuys Lo skIn u cuL, us LIe suyIng goes, buL IundumenLuI und
LecInIcuI unuIysIs ure LIe Lwo mosL popuIur wuys oI LrudIng X.
My own preIerred upproucI Is LIuL oI LecInIcuI unuIysIs. L Is beyond LIe scope II
LIIs IILLIe book Lo cover uII LIe IIner poInLs oI LrudIng und II you wouId IIke Lo
Ieurn more LIen wouId suggesL your IIrsL book sIouId be ''Truding Ior
Beginners''.
L Is specIIIcuIIy desIgned Ior LIe novIce Lruder wIsIIng Lo Ieurn more ubouL
LrudIng und LecInIcuI unuIysIs.
PIeuse vIsIL LIe sponsor oI LIIs Iree ebook on LIe nexL puge.
LIunk you
nLroducLIon Lo LIe OREX

Puge zq oI zq
Amuzing New Truding Book Gives Truders An LnIuir
Advuntuge With Lniqoe ScientiIic Truding Methods.

!!Wurning!!

AILer reudIng LIIs ebook you ure goIng Lo become InsuneIy pussIonuLe ubouL
LrudIng. You muy noL LIInk IL - buL LrudIng Is un uddIcLIon! um reuIIy gIud you
goL Lo LIIs websILe und Iere's wIy.

I you Iuve been LrudIng Ior some LIme or you ure new Lo LrudIng, LIe Iurd IucL Is
you need LruLI -noL IIes wIen IL comes Lo LIIs gume. L's u sud purL oI IIIe LIuL
LrudIng, IIke everyLIIng eIse Ius more LIun ILs IuIr sIure oI B.S.

TIose oI you wIo wIere reIerred Iere know exucLIy wIuL meun. You mIgIL Iuve
even been suckered InLo one oI LIose $ooo semInurs or courses: onIy Lo IInd
LIuL wIen you goL Iome und suL down In IronL oI your compuLer Lo Lry und Lrude
LIe sysLem you couIdn'L muke uny money.

Am suyIng LIuL II you buy LIIs ebook um goIng Lo
soIve uII your IInuncIuI probIems, noL u cIunce.
don'L know you: Iuve no Ideu oI wIuL you ure
cupubIe oI.
BuL Iere's wIuL do know. Iuve been wIere you
ure! Iuve mude LIe mIsLukes, spenL counLIess
LIousunds oI doIIurs on books, courses und semInurs.

I just finished reading your ebook, "Trading For Beginners" and I must say, it is
absolutely the most comprehensive and easy to understand publication for trading I have
ever come across.
You masterfully expose many of the snares new traders are caught in, often costing them
their hard earned money, and leave the reader with the confidence that can only come
from having first hand knowledge on a subject. It is not only a great primer for new
traders, but a handy reference work for experienced ones as well.
Mike Kidwell - Professional Trader
Truding Ior Beginners - Click Below
http:[[www.myedollurs.com[beginner