Welcome to the PoloInvest Education Centre. Here at the Forex education centre our aim is to teach you in simple terms about the forex market. From understanding the underlying reason as to why the Forex market exists to basic strategies that are the foundations of understanding the dynamics of the Forex market.
The education centre is essentially a Forex resource centre that will grow with time. Our intention is to create a library of resources for our clients to access, place presentations on key topics and essentially add value by providing the tools and knowledge our clients require to trade with confidence.
We will also use the resource centre to update our clients on upcoming seminars and webinars and occasionally we will seek to get high profile and experienced participants in the Forex markets to offer us their insights through interviews and live question and answer sessions.
Introduction to Forex
The foreign exchange or ‘Forex Market’ is the world’s largest financial market. It is a non-stop cash market where currencies of nations are traded off-exchange through brokers.
It is estimated that, on average, $3.6 trillion is traded each day in the world Forex markets. The vast majority of Forex trading does not occur on any one centralized or organized exchange but through brokers on the interbank currency market. The interbank currency market is a twenty four hour market that follows the sun around the world. Opening in Australia and closing in the U.S. Whilst the market exists for organizations with exchange risk, speculators also participate in the Forex markets in an effort to profit from their expectations regarding shifts in exchange rates.
Who trades Forex
In the early part, the Forex market was used by institutional investors that transacted large amounts for commercial and investment purposes. Today however, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long term holders and hedge funds all use the Forex market to pay for goods and services, transact in financial assets and speculate or to reduce the risk of currency movements by hedging their exposure or increasing their exposure through speculation.
In today’s information superhighway the Forex market is no longer solely for the institutional investor. The last 10 years have seen an increase in non-institutional traders accessing the Forex market and the benefits it offers. Trading platforms such as MetaQuotes MetaTrader have been developed specifically for the private investor and educational material has become more readily available. These have all added to the attractiveness of the Forex market for the private investor.
The growth in the Forex market over the last decade has led to a number of advantages for the private investor. Trading material to educate the trader has become far more readily available. Support services via forums have become increasingly popular and in the event that you the private investor no longer wish to trade the account yourself, you have professional money managers that will take-over via managed accounts. In brief the main advantages for the private investor and the shorter term trader are:
24 hour trading, 5 days a week with 24 hour cover provided by the broker.
- PoloInvest provides 24 hour cover for its clients
- Cover from Sunday night through to Friday night.
An enormous liquid market.
- $3.6 trillion traded daily
Market volatility.
- The Forex market is constantly moving providing volatility. It is this volatility that provides both long and short term traders the opportunity to profit from the Forex market.
Products that are traded
- With over twenty products being offered there are always opportunities in the market.
The ability to go long or sell short.
- You are not restricted to long positions only. If you believe that a currency pair is going down you have the ability to take a short position.
Low margin requirements.
- With the low margin requirement you are able to leverage your account up to 1000.
A Wealth of Trading Resources & Forums.
The retail “Forex” market is an off-exchange retail foreign currency market where the participants are able to buy, sell, exchange and speculate on currencies. Essentially, the process to exchanging one currency for another is a simple trade that is based on the current rates of the two currencies involved. The currency market is comprised of central banks, investment and commercial banks, fund management firms (mutual funds and hedge funds), major corporations, and individual investors or speculators. The forex market, in conjunction with the interbank market, is one of the largest financial markets in the world with the retail sector contributing a small portion of the overall forex market volume.
How can I trade Forex?
Private investors or individuals are often referred to as Retail Forex Traders. Retail Forex traders, or speculators, commonly access the off-exchange retail foreign currency market (or Forex market) via a Forex broker. They do not trade in the actual Interbank market itself. Typically this includes specific Forex trading software developed for the Retail Forex Market – such as Meta Trader 4 (a MetaQuotes product) or trading platforms that have been developed in-house for use on the internet.
The brokers act as a bridge between you and their liquidity partner or partners (sometimes larger global banks) that you would otherwise not have sufficient capital to do business with. This can happen in one of several ways. Whilst some Forex Brokers act as market makers, meaning that they create the liquidity and assume some risk, other retail brokers clear trades directly through to the larger banks that provide their liquidity. The latter is referred to as straight through processing.
Forex Market Hours
Unlike other financial markets, the Forex market operates 24 hours a day, 5 days a week. Starting in Sydney, then Tokyo followed by Europe and finally the Americas, the market opens late on Sunday evening and then closes late on Friday. It is conducted through an electronic network of banks, corporations and individual traders exchanging currencies. For retail traders Forex is primarily used as a means for speculative investing and actual physical delivery of currencies is almost never intended.
The retail “Forex” market is an off-exchange retail foreign currency market where the participants are able to buy, sell, exchange and speculate on currencies. Essentially, the process to exchanging one currency for another is a simple trade that is based on the current rates of the two currencies involved. The currency market is comprised of central banks, investment and commercial banks, fund management firms (mutual funds and hedge funds), major corporations, and individual investors or speculators. The forex market, in conjunction with the interbank market, is one of the largest financial markets in the world with the retail sector contributing a small portion of the overall forex market volume.
How can I trade Forex?
Private investors or individuals are often referred to as Retail Forex Traders. Retail Forex traders, or speculators, commonly access the off-exchange retail foreign currency market (or Forex market) via a Forex broker. They do not trade in the actual Interbank market itself. Typically this includes specific Forex trading software developed for the Retail Forex Market – such as Meta Trader 4 (a MetaQuotes product) or trading platforms that have been developed in-house for use on the internet.
The brokers act as a bridge between you and their liquidity partner or partners (sometimes larger global banks) that you would otherwise not have sufficient capital to do business with. This can happen in one of several ways. Whilst some Forex Brokers act as market makers, meaning that they create the liquidity and assume some risk, other retail brokers clear trades directly through to the larger banks that provide their liquidity. The latter is referred to as straight through processing.
Forex Market Hours
Unlike other financial markets, the Forex market operates 24 hours a day, 5 days a week. Starting in Sydney, then Tokyo followed by Europe and finally the Americas, the market opens late on Sunday evening and then closes late on Friday. It is conducted through an electronic network of banks, corporations and individual traders exchanging currencies. For retail traders Forex is primarily used as a means for speculative investing and actual physical delivery of currencies is almost never intended.
PoloInvest places great emphasis on Forex Education. So do you want to increase your Trading Knowledge? Then just open a PoloInvest Demo or Live Account and use the login details to login to the Trader’s Room.
After you login, simply click on the ‘EDUCATION’ tab to view our Training course.
In this course you will learn:
- The basics of Forex Theory
- The Basics of Forex Trading
- Reading and Interpreting Charts
- Trading Strategies
- The Right Trading Psychology
- Technical Analysis
