FX Level 1
Agenda • • • •
What is FX? Why does it exist? Who trades FX? Trading FX using Saxo Trader II
What is FX? • The trade of one currency against another
Why does it exist? • • • •
From business necessity to trillion dollar speculation Trade balances between countries Hedging foreign investments Speculation
Sell Sell Profit Profit Buy Buy
Who trades FX? • • • •
Central Banks / sovereign governments Commercial hedgers such as exporters and importers Speculators – (you) Foreign investment hedging – (you)
Trading using Saxo Trader II
Pips & Spreads •
•
Pip: – – –
The smallest price change that a given exchange rate can make. e.g. EURUSD price 1.3152 e.g. USDJPY price 117.56 NOTE: At Saxo Bank, we offer pricing in 1/10 pips, i.e. there is an extra decimal: • EURUSD 1.31520 • USDJPY 117.560 – 1.31520 Spread: The difference between the price you can buy and sell at
Trading using the Saxo Trader II is simple
Account Summary
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