Getting Started With Forex

Welcome back,

Whatever it is, be it the existing users or new users, the trading requires a 'MetaTrader 4' platform However, for this tutorial I'll be using the FXCM Trading Platform as an example.

In order to trade in the financial market, traders need a trading software called a MetaTrader4 platform. This is a free package program and available from a wide selection of Forex brokers. This program is specially designed for online trading in the Forex market.

There are plenty of forex trading brokers which offer more than one forex trading software to their customers. Some of these trading software can easily be operated online. There are also some software which you have to download on your PC so that you can use them.

For this tutorial, we shall use only MetaTrader 4. The software itself offers so many strong features. The built-in technical indicators enable you to analyze securities' quotes, make trades and develop trading strategy. Please note that the trading platform be it for a live trading or practice account are exactly similar.

New Users

If you do not have MetaTrader 4 installed on your computer then you can download a copy here and requesting a 'practice' account:

Please note that you are free to use any MetaTrader 4 broker you wish. There are plenty of MetaTrader 4 brokers out there but, for this particular tutorial I shall be using FXCM MetaTrader.

What is forex Trading?

In plain language, Forex trading is to buy one currency while simultaneously selling another. In other words you are exchanging the currencies.

Currencies are traded in pairs, example Euro and US dollar as EUR/USD. In this case, you can buy Euro and sell US dollar and similarly, you can sell Euro and buy US dollars.

For new comers, you'll have to live yourself with the jargon and terminologies which a trader must know before start trading.

Some of the common terminologies are:-

• Currency Pair - The two currencies that make up a Foreign Exchange Rate . For Example, EUR/USD or GBP/USD

• Base Currency - The first currency in a Currency Pair. It shows how much the base currency is worth as measured against the second currency.

For example, if the GBP/USD rate equals 1.6215 then one GBP is worth USD 1.6215.

• Bid Price - The bid is the price at which the market is prepared to buy a specific Currency in a Foreign Exchange Contract.

• Ask (Offer) Price - The price at which the market is prepared to sell a specific Currency in a Foreign Exchange Contract.

• Spread - The difference between the bid and offer prices.

• Pips - The smallest unit of price for any foreign currency. Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also known as Points.

• Lot – A standard transaction size in forex transaction.

• Leverage - Also called margin. The ratio of the amount used in a transaction to the required security deposit.

• Market Order: An order to buy at the current Ask price.

• Stop Loss Order – is an instruction given to your broker to automatically liquidate your open position for a currency when a specific price or targeted price is reached.

• A trailing stop is a type of stop-loss order attached to a trade that moves as price fluctuates.

CURRENCY CODES

• USD = US Dollar
• EUR = Euro
• JPY = Japanese Yen
• GBP = British Pound
• CHF = Swiss Franc
• CAD = Canadian Dollar
• AUD = Australian Dollar
• NZD = New Zealand Dollar

CURRENCY PAIR TERMINOLOGY

• EUR/USD = "Euro"
• USD/JPY = "Dollar Yen"
• GBP/USD = "Cable" or "Sterling"
• USD/CHF = "Swiss"
• USD/CAD = "Dollar Canada"
• AUD/USD = "Aussie Dollar"
• NZD/USD = "Kiwi"

Downloading “MetaTrader 4” platform

So, let us begin! If you visit the link above then you will be directed to a new screen similar to the one shown below.

Click on Submit button

A new screen will then appear. Click on 'Download MetaTrader4'

The screen below will appear. Click Open
 

Then click Next

Click Next












 
Check the box below (Yes, I agree with all the terms..). Then click Next

Click Next

Click Yes

Click Next

Click Next

Below image will appear on the screen

Check the box. Click Finish

After a few seconds, the screen below will appear

Click on the 'File' main menu. Select 'Open an Account'

This will navigate you to the following screen. Fill-in the blank. Click Next

Below is an example how to fill-in the details. On completion, check the box. Click Next

 Click Next

Click Finish

Your account is now created and ready for trading.

After a while, the below screen will appear. Click Start.

This will navigate you to a new screen

Click Update and Restart

You’re now ready.

Finish...

That's all for today. I'll see you in my next entry. We’ll discuss very briefly on how Technical Indicators work and orientate ourselves with the chart.


Till then, bye

azizexel
http://freeforex-strategy.com