Currency Trading For Dummies

Trade currencies like a seasoned pro with this friendly, fact-filled guide to the forex market

Over $6 trillion changes hands in the foreign exchange market every day. You can jump straight into the action with expert guidance from the hands-on Currency Trading For Dummies. You'll learn how the foreign exchange market works, what factors influence currency values, and how to understand financial data. When you're ready to create your own game plan for trading currencies, you'll be able to build it around your investment objectives, experience level, and risk appetite. You'll also find details on the latest trends in currency trading, including currency ETFs, cryptocurrencies, and currency options.

From essential newcomer knowledge to advanced positioning advice, Currency Trading For Dummies offers straightforward instruction that helps you:

• Source data and market intelligence, employ technical analysis, and use the latest tech to find the most lucrative trading opportunities
• Understand the most recent Securities and Exchange Commission (SEC) rules and regulations governing currency trading
• Avoid common pitfalls and mistakes made by novice and experienced currency traders
• Recognize profitable opportunities in the world of ETFs, currency options, and cryptocurrencies

Successful currency trading is within your grasp. This accessible roadmap to trading mastery provides the foundational knowledge you need to create a structured, winning strategy and conquer the forex market.

Autorentext

Paul Mladjenovic is a national speaker, a consultant, and the author of Stock Investing For Dummies, High-Level Investing For Dummies, and Investing in Gold and Silver For Dummies. He was a Certified Financial Planner during 19852021, and he was a financial and business educator for over 40 years. He is the CEO of RavingCapitalist.com.

Klappentext
Trade currencies like a veteran forex guru

Do you want to get in on the $6 trillion of daily action on the forex market? In Currency Trading For Dummies, you'll find an everyman's guide to participatingand profitingin the currency markets. Leave the confusing jargon behind and discover everything from essential advice for newcomers to advanced positioning techniques as you create a plan that's built around your objectives, experience level, and risk appetite. You'll also learn to recognize lucrative opportunities in alternatives to forex, like exchange-traded funds, options, and cryptocurrencies! Inside

• **Understand currency rates
• Go around the world in a trading day
• Meet the main forex players
• Build a currency trading plan
• Use technical and fundamental data
• Check out major and minor currency pairs
• Look at forex alternatives

Zusammenfassung
Trade currencies like a seasoned pro with this friendly, fact-filled guide to the forex market

Over $6 trillion changes hands in the foreign exchange market every day. You can jump straight into the action with expert guidance from the hands-on Currency Trading For Dummies. You'll learn how the foreign exchange market works, what factors influence currency values, and how to understand financial data. When you're ready to create your own game plan for trading currencies, you'll be able to build it around your investment objectives, experience level, and risk appetite. You'll also find details on the latest trends in currency trading, including currency ETFs, cryptocurrencies, and currency options.

From essential newcomer knowledge to advanced positioning advice, Currency Trading For Dummies offers straightforward instruction that helps you:

• Source data and market intelligence, employ technical analysis, and use the latest tech to find the most lucrative trading opportunities
• Understand the most recent Securities and Exchange Commission (SEC) rules and regulations governing currency trading
• Avoid common pitfalls and mistakes made by novice and experienced currency traders
• Recognize profitable opportunities in the world of ETFs, currency options, and cryptocurrencies
  Successful currency trading is within your grasp. This accessible roadmap to trading mastery provides the foundational knowledge you need to create a structured, winning strategy and conquer the forex market.

Inhalt

Introduction 1

About This Book 1

Foolish Assumptions 3

Icons Used in This Book 4

Beyond the Book 5

Where to Go from Here 5

Part 1: Getting Started with Currency Trading 7

Chapter 1: Currency Trading 101 9

What Is Currency Trading? 9

Speculating as an enterprise 10

Currencies as the trading vehicle 11

What Affects Currency Rates? 12

Fundamentals drive the currency market 12

But sometimes it's the technicals that are driving

the currency market 13

Or something else may be a driving force 14

Developing a Trading Plan 14

Finding your trading style 14

Planning the trade 15

Executing the Trading Plan from Start to Finish 16

Chapter 2: What Is the Forex Market? 19

Getting Inside the Numbers 21

Trading for spot 21

Speculating in the currency market 21

Getting liquid without getting soaked 22

Around the World in a Trading Day 23

The opening of the trading week 23

Trading in the Asia-Pacific session 24

Trading in the European/London session 25

Trading in the North American session 26

Key daily times and events 27

The U.S dollar index 28

Looking at Currencies and Other Financial Markets 30

Gold 31

Oil 31

Stocks 32

Bonds 33

Getting Started with a Practice Account 34

Chapter 3: Who Trades Currencies? Meet the Players 37

The Interbank Market Is the Market 38

Getting inside the interbank market 38

Bank to bank and beyond 39

Hedgers and Financial Investors 41

Hedging your bets 42

Global investment flows 44

Speculators: Running the Forex Show 45

Hedge funds 45

Day traders, big and small 48

Governments and Central Banks 48

Currency reserve management 49

The Bank for International Settlements 50

The Group of Twenty 51

Chapter 4: The Mechanics of Currency Trading 53

Buying and Selling Simultaneously 53

Currencies come in pairs 54

The long and the short of it 57

Looking at Profit and Loss 59

Margin balances and liquidations 59

Unrealized and realized profit and loss 60

Calculating profit and loss with pips 61

Factoring profit and loss into margin calculations 62

Understanding Rollovers and Interest Rates 62

Currency is money, after all 63

Value dates and trade settlement 64

Market holidays and value dates 65

Applying rollovers 65

Checking Out Currency Prices 67

Bids and offers 67

Spreads 68

Executing a Trade 68

Trading online or on the phone 69

Orders 72

Part 2: Data and Details You Can Use to Trade Currencies 79

Chapter 5: Looking at the Big Picture 81

Currencies and Interest Rates 82

The future is now: Interest rate expectations 84

Relative interest rates 84

Monetary Policy 101 86

Looking at benchmark interest rates 87

Easy money, tight money 87

Unconventional easing 89

Watching the central bankers 90

Interpreting monetary policy communications 91

Official Currency Policies and Rhetoric 94

Currency policy or currency stance? 94

Calling the shots on currencies 95

Taking a closer look at currency market intervention 98

Financial stability 101

Debts, deficits, and growth 101

Gauging credit risk 102

Geopolitical Risks and Events 104 Gauging risk sentiment 105&...