How To Trade Forex New Ebook by Vince Stanzione for

Foreign exchange – forex or the FX market, as it is commonly known – is one of the biggest marketplaces in the world. Here, no trading floor exists; banks, brokers, companies, and governments trade among themselves through high-tech computer networks, such as those offered by Reuters and Bloomberg.

It’s hard to comprehend the colossal amount of money traded in this market on a daily basis, which totals around 7.5 trillion USD per day, as reported in a 2022 survey by the BIS Triennial Central Bank Survey. Approximately 10% is fuelled by companies trading overseas, needing to convert currencies for routine commerce, such as import/export businesses; the rest is pure speculation and investment.

Today, it’s possible for anyone to trade currencies – even with a small amount of risk capital, thanks to You can also trade in the FX market regardless of which country you are in. Prices are always being quoted and are universally accessible.

The currency market offers nearly 24 hours of seamless trading – starting on Sunday at 9:00 pm GMT, which is early morning in Asia, and carrying on all the way until Friday evening in New York, or 10:00 pm GMT. Although the FX market is liquid almost all the time, the most active times are typically around 1:00 pm GMT to 4:00 pm GMT when the London and US markets are both open. This is also known as the overlap sessions. Another busy time is around 8:00 am GMT, when London initially opens and the Far East is closing down for the day.

vince stanzione forex

Investors and speculators

In this article, we will look at how Investors and speculators trade currencies in an attempt to benefit from movements in the currency exchange markets. They do not intend to use the money itself for any practical purposes; instead, their motives are purely driven by speculation and a simple desire to profit from the price differences. The actual principal is not changing hands.

The majority of all FX trades – i.e. approximately 80% – involve the US dollar (USD). The USD remains the world’s reserve currency, used when trading commodities such as Gold and Oil (which are quoted in USD per ounce or barrel). Companies that do business throughout many parts of the world still report in USD. Bitcoin whilst a cryptocurrency is still quoted the majority of the time in US Dollars.

The majority of all FX trades – i.e. approximately 80% – involve the US dollar (USD). The USD remains the world’s reserve currency, used when trading commodities such as Gold and Oil (which are quoted in USD per ounce or barrel).

What can you trade with

Major pairs

The most popular, commonly traded currency pairs, such as EUR/USD and USD/JPY. All major pairs include USD since it’s the world’s most traded currency.

Minor pairs

Currency pairs that don’t include USD, but still encompass the currency of developed countries. This could be GBP/CAD or EUR/ CHF.

Exotic pairs

Currency pairs consisting of one major currency and the currency of a developing country, such as Turkey (available on DMT5). Pairs such as USD/RUB or USD/THB would come under this group.

Unique Digital options

offered by

Digital options have a fixed payout and a fixed premium. Before purchasing each trade, you’ll know the exact cost of each trade

and how much you stand to gain or lose. At worst, the maximum that you could ever part with is the price initially paid to purchase the trade; at best, you’ll win back your initial stake plus the payout amount displayed for your consideration when you first bought the trade. Thus, as forex trading goes, the digital option route is clear-cut and predictable in terms of the potential outcomes. Your risk on DTrader is strictly limited to your premium.

deriv traded option digital options
Deriv Digital options give you a variety of ways to profit from a currency pair. (not available in all regions)

In my new E-book How To Trade the Forex market, I go into more depth on the different ways to back a currency, as well as how I use technical analysis to help spot trends in the market. I also go through the Forex terminology and take you through trading examples.

A CFD is a derivative product that you can use to speculate on the future direction of a market’s price.

You’ll never take ownership of the underlying asset (in this case, currencies). Profit or loss results only from the difference in the price of the underlying asset when the contract is closed. A CFD gives you exposure to a market and allows you to go long (trade for the price to go up) or short (trade for the price to go down). The CFD will remain open until you close it, or it gets stopped out. believes in reasonable trading and offer ways to limit your risk such as stop loss, take profit and limit orders they also offer a no negative balance guarantee which means should a trade go heavily against you, and you don’t have a stop loss order you will not be asked for additional funds. use Metatrader 5 (MT5)

MetaTrader 5 (MT5) is a robust online trading platform developed by MetaQuotes Software. Whilst, at first sight, MT5 can look a little overwhelming, take it a bite at a time, and you’ll easily be able to rise to master it. The software is available free of charge and can be downloaded on a desktop, or you can use a mobile device will apps available for Android and iPhone/iPad.

If you have say $1,000 with no leverage then the most you could trade is $1000 which is not that appealing, fortunately Deriv offer generous leverage which will vary depending on your country of residency.

Let’s take for example 50:1 leverage this means for every $1000 you can control $50,000 this of course will magnify your gains and losses so should be used carefully. I explain risk management techniques in my E-book How To Trade Forex.

Trading a pair

In currency trading you are always trading a pair, it’s one currency the base currency against the quote currency. If you went long (buy) EUR/ USD then you are buying Euros and Selling US Dollars, you cannot just say buy Euros.

Bid price: The bid price (SELL) is what the broker is willing to pay for the base currency in this example 1.18816

Ask price: The ask price (BUY) is the rate at which a broker will sell the quote currency. The ask price is always higher than the bid price, in this case 1.18831

Spread: The difference between the ask price and the bid price, which allows the broker to earn a commission on your trade. After you cover the spread between the bid and ask prices, you can start making a profit on your position. (Spread = Ask price minus Bid price). Tighter the spread the better.

Overall, currencies do not move in large percentages, but what exaggerates the moves is the use of leverage. A 0.5% daily move when you have 100 x leverage becomes magnified.

Ready to discover more?

vince stanzione ebook deriv trade forex like a pro

You can download my new 75-page E-Book How To Trade the Forex which will cover:

•    The Simple Basics of Forex

•    Who Needs and Uses the Currency FX Market?

•    Popular Digital Options FX contracts

•    What Makes a Currency Go Up or Down?

•    Which Currencies Can You Trade?

•    Trading commodities with Deriv

•    Currency pairs you can trade with Deriv

•    Fundamental Analysis

•    Technical Analysis and Trading

•    3 Possible States for Currency Pairs

•    Three Main Tools a Trader Can Use

•    Chart Formats

•    Power Tools for Forex Traders

•    Support and Resistance: How to Make Money from a Sideways or Dull Market

•    Deriv Meta Trader 5 – Step up to the next level

•    Money Management and keeping your emotions in check

•    7 Top Tips to Help You Trade profitably with Deriv

•    FAQs

•    Glossary of Key Terms Used in Forex and Digital Options Trading

You can also put your new-found skills to the test, zero risk, by using a practice (demo) account.

To get your copy, just go to:

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