Forex Video

Introduction to Foreign Exchange / Understanding Market Structure Free Sample

This video was designed to help traders new to the market gain a solid understanding of the key principles all new traders must understand in order to ultimately succeed in the Forex market. One must first understand the market, before they can successfully trade the market.

Fundamental analysis is the study of the core underlying elements that influence the economy of a particular currency. This method of study attempts to predict price action and market trends by analyzing economic indicators, government policy and societal factors. Imagine financial markets as a large clock, the gears inside this clock that move the hands, or drive the clock would be these “fundamentals”.

Foreign exchange traders base their decisions on technical analysis and fundamental analysis. Technical traders use charts, trend lines, support and resistance levels, mathematical models and other means to identify opportunities and drive trading decisions. Fundamental traders identify trading opportunities by analyzing economic information.

Major Forex market participants are central banks, commercial banks, investment banks, securities dealers, pension funds, insurance companies, and multinational corporations.