About
this
guide
If
this
is
your
first
time
coming
across
the
online
Forex
market,
then
you’ve
come
to
the
right
place.
This
guide
will
provide
you
with
the
basic
knowledge,
tools
and
techniques
a
novice
Forex
trader
should
have
as
you
take
your
first
steps
in
the
fascinating
world
of
Forex.
Many
of
the
trading
concepts
introduced
here
are
explained
in
greater
detail
in
later
chapters
of
the
guide.
If
you
are
unclear
about
any
Forex
term
you
come
across
here,
be
sure
to
refer
to
the
glossary
of
terms
Basic
Forex
Trading
Guide
P u b l i s h e d
b y
w w w . e T o r o . c o m
T r a d i n g
P l a t f o r m
Financial
Trading
Made
Simple
BASIC
FOREX
TRADING
GUIDE
2
Index
Use
the
following
index
to
navigate
your
way
around
the
guide.
Intro:
Why
Forex?
............................................................................................. 3
Profitability........................................................................................................ 4
Cashing
in
on
Price
Movements ......................................................................... 5
The
Trend
is
Your
Friend .................................................................................... 7
Tactical
usage
of
Leverage................................................................................ 10
A
Simple
Trade
Example................................................................................... 12
Hedging
Risks
and
Rewards.............................................................................. 14
The
Quest
for
Volatility
................................................................................... 15
Money
Management........................................................................................ 16
Open
free
Practice
eToro
account!
BASIC
FOREX
TRADING
GUIDE
3
Intro:
Why
Forex?
If
you
are
reading
this
guide,
you
have
most
likely
taken
some
sort
of
interest
in
the
Forex
market.
But
what
does
the
Forex
ma