Introduction

Foreign exchange trading involves two currencies, one of which is bought and the other is sold. The price at which these two currencies are exchanged is called the “exchange rate”.

It is a global market that trades 24 hours a day, 5 days a week. It has no centralised location. Eg : US Forex trading Market and EU Forex trading Market

There are two types of Forex traders: those who trade on speculation and those who trade on fundamentals. Speculators, as the name suggests, speculate on whether a currency will increase or decrease in value based on recent economic events. Fundamental traders focus more on a country’s economic performance and its ability to pay off debts.

I. Forex Trading, Currency Market

1.Forex Market Definition

Forex or foreign exchange is the trading of one currency against another.

The forex market is the largest financial market in the world and it has been around for decades. The forex market consists of trillions of dollars worth of currency transactions each day.

The foreign exchange market can be categorized into three types: spot, swap, and forward.

The spot foreign exchange rate refers to the current price of a currency pair that can be traded immediately for cash settlement.

The swap foreign exchange rate refers to an agreement to trade a certain amount of one currency for another at a specified future date for cash settlement.

A forward contract is an agreement to trade a certain amount of one currency for another at a specified future date, but with delivery occurring on the date the contract was made rather than when it expires.

2. Forex Arbitrage

Forex arbitrage is a trading strategy that involves taking advantage of different currency prices in the foreign exchange market.

It is important to note that the Forex arbitrage opportunities occur because the Forex Market is decentralised, therefore the price of one currency can be different in two markets.

There are two types of Forex arbitrage:
The process of arbitrage involves the simultaneous purchase and sale of an asset to profit from a price difference in one or more markets.

a)Arbitrage on the spot market is when you simultaneously buy and sell one currency for profit in another currency or another pair..
b) Arbitrage on the forward market: This is when you buy and sell one currency for profit in another currency at a future date.

II. What are Commodities?

Commodities can be tangible goods such as food, minerals, or metals traded on the the Financial Market. They can also be intangible goods such as a service or a right, such as a share of stock.

Ex: Corn, Cocoa, Coffee, Steel trading, copper , Gold , silver, oil ….

Commodities traders buy and sell for a living and they are often the first to know about any changes in commodity prices. They also help companies predict how much demand there will be for their products.
A commodity trader can work for themselves or for an investment bank or brokerage firm.

1. What is Commodities Trading ?

Commodities trading is the buying and selling of raw materials such as metals, energy, and agricultural products. The basics of commodities trading include understanding the markets and how they work.

Commodities trading is a high-risk investment with a high rate of return. It can be very profitable if done correctly, but it’s also very easy to lose money in this market.
The two main types of commodities are physical and futures.

Physical commodities are items like gold, copper, or corn that you can touch and buy on an open market.

Futures contracts are agreements to buy or sell a certain amount of something at a specific date in the future at a predetermined price.

4. Commodity Trading Strategies

Commodity trading strategies are important for beginners because it helps provide a framework to help them make decisions.
There are many different futures trading strategies.

They can be classified into three categories: directional, technical and fundamental.

Directional strategies rely on the market’s direction, while technical strategies rely on the markets price and fundamental strategies rely on economic conditions.

III. forex trader tips and tricks

Trading is a skill that requires patience, discipline and dedication. It is not for everyone and it takes time to get the hang of it.

However, with these forex trader tips and tricks, you can save yourself some time and get started quickly.

Find your trading  strategy.Generally investors base their strategy on their analysis, which can be technical or fundamental.

Technical analysis is based on the study of the charts, looking at daily  and weekly price ranges and how it has been changing.

While in fundamental analysis, investors may look at economic indiactors such as GDP, Industrial production, Retail Sales and major events or news.

One of the best things about forex trading is that you don’t need to spend a lot of money in order to start trading. This makes it easier for people who are just starting out to make their first trades without having to worry about losing a lot of money in the process.

For those who want to take their trading experience up a notch, there are also shortcuts which can be used when trading on platforms such as MetaTrader 4 or 5. These shortcuts will help you trade faster and more efficiently while still allowing you to keep your focus