introductionto forex- conceptsand terminologies i（introductionto外汇——conceptsand术语我）.docVIP

Table of Contents 1) Introduction to Forex – Major Currencies 1 a) The U.S. Dollar. b) The Euro. c) The Japanese Yen. d) The British Pound. e) The Swiss Franc. 2) Introduction to Forex - Concepts and Terminologies 3 a) Spot rate b) Bid ask c) Base currency and counter currency d) Quotes in terms of base currency e) Basis points or pips f) Euro cross cross rates 3) Introduction to Forex - Profit and Loss 5 4) Introduction to Forex - Understanding Margins 6 5) Introduction to Forex - Order Types 7 a) Market Order b) Limit Order c) Stop Order d) Once Cancels the Other (OCO) e) IF DONE Order 1) Introduction to Forex - Major Currencies a) The U.S. Dollar. The United States dollar is the worlds main currency – an universal measure to evaluate any other currency traded on Forex. All currencies are generally quoted in U.S. dollar terms. Under conditions of international economic and political unrest, the U.S. dollar is the main safe-haven currency, which was proven particularly well during the Southeast Asian crisis of 1997-1998. As it was indicated, the U.S. dollar became the leading currency toward the end of the Second World War along the Breton Woods Accord, as the other currencies were virtually pegged against it. The introduction of the euro in 1999 reduced the dollars importance only marginally. The other major currencies traded against the U.S. dollar are the euro, Japanese yen, British pound, and Swiss franc. b) The Euro. The euro was designed to become the premier currency in trading by simply being quoted in American terms. Like the U.S. dollar, the euro has a strong international presence stemming from members of the European Monetary Union. The currency remains lagued by unequal growth, high unemployment, and government resistance to structural changes. The pair was also weighed in 1999 and 2000 by outflows from foreign investors, particularly Japanese, who were forced to liquid