Lesson 1: Introduction to The Forex Market
Section I: Introduction
Welcome to this, your first lesson in our SF Free Forex Course. We hope you find the content interesting, informative and helpful to your trading future. In this first lesson you will learn about all the basic information regarding the Forex market. While these following lessons will cover a large number of concepts and ideas in great depth, more detail and advanced trading ideas are available in the SF Advanced Training available at www.tradingwithtamil.com
In any kind of business, from selling used cars to trading the Forex market, it is important to understand every aspect of the market, from the very essentials to the most complex issues that affect it.
Picture this scenario, if you were to adventure into the used cars business, would you just buy a car lot and try to sell them without any planning? I don’t think so, if you do this you will probably end up with a different car to use each day of the week. What would you do then? You will probably want to do some research on the market in which you are about to venture: Who are my possible clients? Check out strategies and prices of competitors, do some analysis of advantages and disadvantages of the used car market, and much more…
The same goes for trading. I’ve seen many traders getting a margin call (MC) without being aware what kind of leverage was being used when theMC happened and some other traders without even knowing what a margin call was!! (If you are not familiar with these terms, don’t worry about it, we will go through them in the following lesson).
In this lesson, we will analyze every aspect of Forex trading, from how it was formed, the main participants, advantages and disadvantages of trading the Forex market, how the Forex market compares to futures and equity markets and all concepts related to Forex trading.
This Lesson is structured in the following way:
Section 2: The Forex market - In this section, we will answer important questions such as: What is the Forex market? When did the Forex market start? What is traded in the Forex market? Where is the physical location of the Forex market?
Section 3: Benefits of the Forex market - We compare the Forex market with other financial markets and see what makes the Forex market so attractive.
Section 4: Main Forex Participants - We analyze who participates in the Forex market and what is their part in it.