Lesson 1: Your First Steps in Forex
You'll Learn: How currencies work globally and why people trade them
The World's Money Marketplace
Simple Definition:
Forex is where countries' money gets exchanged, like a giant global money exchange booth that never closes!
Supermarket Analogy:
Products = Currencies
(USD, EUR, JPY)
Price Tags = Exchange Rates
(EUR/USD = 1.12)
Shoppers = Banks, Companies, Traders
24/5 Trading Clock
Sydney Open
5 PM EST
Tokyo Open
7 PM EST
London Open
3 AM EST
New York Open
8 AM EST
Why People Trade Currencies
Travel Needs
Example: Converting USD to EUR for Paris trip
$1,000 → €920
Business Payments
Apple pays Chinese factories in yuan
$1M → ¥7M
Profit Seeking
Buy low, sell high - 80% of daily trading
1.0800 → 1.0850 = $500 profit
Liquidity Comparison
Who Moves the Markets?
Central Banks
Role: Control money supply
2023 Example: Fed raised rates to 5.5%
Commercial Banks
Role: Currency exchange for clients
HSBC processes $500B daily
Retail Traders
Role: Speculative trading
1996: First online platform
2023: 10M+ traders
Practice Trading
EUR/USD
1.0800 → 1.0820
0.1 Lots Profit: $20
Start small - even $100 can begin your trading journey!