Forex

The speaker provides an explanation on the differences between over the counter markets and exchange traded markets as it relates to the forex market.

The speaker provides an overview of the forex market.  He suggests that the forex market carries the most amount of liquidity in relation to any other type of securities market.  Not only is there tremendous liquidity, there is also trading available 24 hours per day; however, this can be a negative if you cannot pull yourself away from the s

The speaker provides an overview of the various tiers of participants that exist in the forex market.  The first tier is comprised of federal banks, or other very large banks, who exchange currency internationally.  Second tier participants are large consumer banks and brokers.  Second tier participants trade money between themselves and

The speaker provides an overview of the trading hours for each currency and also discusses the best times to trade these currencies.  He suggests that the biggest move in a currency will occur when that specific currency opens for a trade.  He also mentions that the US market trading hours are the most opportune time to ma

The speaker provides a detailed overview of a currency swap.  A currency swap is created when two counterparties, who have issued two securities denominated in different currencies, exchange the principal at the outset of the swap.  This exchange is primarily governed by the exchange rate.  At some predefined interval

The speaker discusses a forex market basic principle, time.  The forex market follows the GMT time zone.  It is generally accepted that the end of trading is at 21:30 GMT.  When the financial markets are closed in Western Europe and the United States, the forex market is c

The speaker discusses a basic concept in the forex market, leverage.  Typically, brokers will allow clients leverage in the forex market in the amount of 100:1 and even 200:1.  When you put in a deposit for $200, you are trading with $20,000. Through a simple trading examp

The speaker explains the difference between spot and swap markets.  He explains that the spot market settles transactions "on the spot" or immediately.  Delivery of the product would be within 2 business days.  Conversely, the SWAP transaction is carried out by the broker and is only executed if the open position r

The speaker discusses the concept of cross rates in the forex market.  He suggests that a cross rate is needed in a currency pair which does not include the US dollar.  Since US dollars are the main currency in the forex market, mo