In our first segment of the Forex Mastery course you will be introduced to the wonderful world of Forex trading. You will learn what the Forex markets are all about, why more and more traders are turning to the Forex markets than any other financial market in the world, how Forex trading can benefit you and what actually happens when you place a trade within the Forex markets. As you progress through the Forex Mastery course you will learn all of the essentials required to become a successful trader. We will explore the differences between the Forex markets and other financial markets, how currencies work, how global markets interact with one another and how to read and analyze charts and price movements like a pro. Our aim is to not only learn but master this powerful art and develop a life-long talent which will allow you to not only attain financial freedom but also secure a successful future for yourselves and loved ones.

The Forex trading market is one of the most exciting, fast paced markets that you could ever take advantage of. Until very recently the Forex markets was limited to only the major financial institutions, corporations, central banks, hedge funds, and extremely wealthy individuals. The emergence of the internet has changed this however making it possible for average investors to partake with the click of a mouse with online brokerage accounts. This impressive and lucrative market allows you to trade currencies against each other 24 hours a day, 5 days a week.

The Forex market is the largest financial market in the world with an estimated $4.3 trillion in currencies traded daily, in fact the market is so large that in comparison with the New York Stock Exchange which trades an average of under $20 billion per day, it would take almost 8 months to reach the amount traded in one day in the Foreign Exchange Market.

“Forex” stands for foreign exchange and may also be referred to as FX. The Forex market unlike other markets is not connected or tied to any specific stock exchange, it is strictly an over-the-counter (OTC) product or an off-exchange market.

Currency trading has been around for some 300+ years, in fact it isn’t hard to conceptualize currency trading. Every single day tourists travelling from other countries must exchange their currencies in order to purchase local goods or services. A pocketful of Euros would be completely useless to a Greek tourist visiting Dubai to see the Burj Khalifa because it is not the locally accepted currency. Instead the Greek tourist would be forced to exchange his or her Euros for UAE Dirhams at the current market exchange rate, which is the local currency of the United Arab Emirates.

Even without being involved in Forex trading, residents of one country exchange their local currency with another countries local currency each time they purchase a foreign product. It’s easy to see that Forex trading is all around us and in fact 99% of you have already participated in some sort of currency trading on more than one occasion in your lifetimes. In fact this is what makes the Forex markets the largest, most liquid market in the world. If the world had one global currency the Forex markets would simply not exist.

Currencies fluctuate on a very low scale on a daily basis, in fact most currency pairs move less than one cent per day, which means there is roughly a 1% change in the value of the specific currency. This low percentage of movement makes the Forex markets one of the least volatile financial markets in the world. However, to alleviate this problem most speculative traders rely on heavy leverage provided to them by their brokers to increase the value of the potential moves. In the retail Forex market brokers offer leverages of up to 1000:1, making it very easy to capitalize on even the smallest price fluctuations. High leverage can also be risky however, which is why the majority of traders incorporate some sort of risk management to protect themselves in the event of a market crash.

For instance, you can sell American dollars for Canadian dollars, Euro for British Pounds and even trade Precious Metals such as Gold, Silver and even Platinum. The exchange rate between these currencies fluctuates on a minute to minute basis and with the proper techniques you can reap the benefits and profiting heavily if you are on the correct side of the market. What is even more wonderful is that you can take advantage of the of the Forex markets directly from the comfort of your own home, while relaxing at the beach or at 35,000ft in the air in an airplane, all you need is a laptop, internet, and proper trading techniques combined with sound risk management skills.

Forex trading can work for all sorts of currencies. It can work in that you can exchange one currency for another and sell it back later on at a rate that is higher or lower than when you first exchanged it, resulting in a profit.

Imagine going to the bank and buying 1000 Euros when the EUR/USD is at 1.30 which essentially means every 1 Euro is worth $1.30 USD, now let’s say we seal that 1000 Euros in an envelope and put it away for a month, a month later the EUR/USD has climbed to 1.40 which means for every 1 Euro you would get $1.40 USD, now if you simply take that envelope back to the bank and return the 1000 Euros and ask for American dollars back, you would have made a cool profit of $100 for doing absolutely nothing. Now you may say that $100 profit in a span of one month isn’t that big of a deal, but imagine performing that same transaction multiple times within a 24 hour period, buying low and selling high and making $100 each time using your computer and a trading terminal. In fact, there is so much movement in the Forex markets that you can literally perform an exchange every 1 minute if you wanted to and some scalpers actually do, resulting in profits of thousands of dollars per day.

Forex traders generate profits by the way of speculating whether a specific currency will increase or decrease in value in comparison to another currency also known as its counterpart. A trader would look to buy a currency which is anticipated to gain value or sell a currency which is anticipated to lose value against another currency by assessing and analyzing the currency on a wide scale of indicators, such as the overall economical health of the currencies nation, interest rates or by using a broad spectrum of technical tools and chart patterns designed to forecast a specific currencies price action in relation to its counterpart. In its simplest form the value of a specific currency is the reflection of its nation’s economy with respect to other major economies. By understanding these basic fundamentals and combining them with technical analysis, you will be able to exploit and profit heavily while mitigating risk, resulting in long term financial success.

Forex also carries a wide range of precious metals which you can trade during all market open hours. For example, you can trade Gold, Silver, Platinum, and Palladium in the same manner that you would currencies and capitalize by either buying high and selling low, or selling high and buying at a lower price at a later time.

The Forex markets have come a long way since the introduction of currency trading, and continue to be the market of choice for traders worldwide.