Introduction 1

Awesome, so you have decided to become a Forex trader! Or maybe you just want to go through our lessons,

That’s ok, but there is only one question you must ask yourself before you continue…
Are you really ready to invest time and attention to master the currency market?

Boring part

Like it or not the introductions are important. because if you don’t know about what tools you need or the basic stuff like the “Demo account” and “how long you can work with FX?” or even about the “withdrawal” you will never be a Forex guru.

So take a deep breath and continue reading carefully.

What is Forex?

For-ex stands for Foreign exchange. It is the largest financial market in the world. The forex market is the “place” where currencies are traded. But not only currencies, brokers like etoro (my favorite, because it is really easy to use) do also have popular stocks like Facebook, Amazon, etc.

FX is huge even when compared to the biggest stock exchange markets. It is the largest financial market with a daily turnover of $5 trillion!

The big players

The first step to know about FX is to know the biggest players. You must know who the big players are in the FX market because they can change the currency rates in a blink of an eye. So keep your eyes and ears wide open.

Politicians like Angela Merkel or even Donald Trump (well he is the president of USA) can create chaos in currency rates with just a few words in their speeches. Forex traders indeed plan their trades by analyzing the most recent economic news and geopolitical developments, as well as the latest announcements from G-7 key officials.

G-7 (Group of Seven) is a forum of the world’s 7 most developed economies: The U.S, Germany, U.K, France, Japan, Canada and Italy.

The main people to follow and listen from these countries are:
● Head of the central bank
● Prime minister
● President of the country
● The most traded currency pair is EUR/USD

so the most influential persons in forex are:
● Chair of the US Federal Reserve Bank
● Head of the European Central Bank
● Chancellor of Germany
● President of the USA

So by now you must know who the biggest players are in FX,
Yes, the Governments and central banks

The biggest player of the forex market are governments and central banks that buy and sell currencies to balance the economic growth and price stability of their nations. That’s why every Forex trader wait with bated breath whenever the chairman of the US or European central bank is speaking publicly. One sentence in their speech can create a big change in the market.

Large corporations

Large corporations control large amounts of money so when they move their assets in bulk, it can influence the currency rates.
For example, when the biggest insurance companies in Japan started to move their assets out of the country because of the decreasing value of yen and decreasing interest rates, the yen fell even more.

Individual traders

The most popular forex trader is George Soros who is famous for breaking the Bank of England and earning $1 billion in a day. He also earned $790 million by speculating on the fall of Thai baht. Traders like George Soros usually operate hedge funds with large resources. They can create a strong impact on a nation’s economy and currency rate.