Forex, is a abbreviation of ‘Foreign Exchange’ words. Named İnternational Currency Market, allows to buy and sell countries’ currencies market called Forex. All across the World, countries passed by from fixed currency sysytem to floating sytem, this allowed to manage investment and trade risk opportunities in financial markets and helped creation of forex market.

Because of leverage opportunity an average daily trading volume exceeding $ 5,5 trillion, Forex market is the largest market of the world. For year 2015, there has been approximately 9,5 trilyon TL trading volume completed.

Forex market offers a lot of advantages to investors. The main advantages are, high level of liquidity, chance to trade 5/24, risk management with hedge opportunity, two way trade opportunity, variety of products and because of leverage, with low deposit possibility of high income.

Whoever has no restriction to open an investment account can trade in this market. Because of price movements change quickly and it is a leveraged market, it is better to trade whoever can turn into these features to profit in Forex market.

Specially, it is better for someone to learn about the platform that is going to use and know details about the market, lost/profit ratio, deposit and risk perception and generate his/her strategies in this direction.

Forex market is monitoring by Capital Markets Board of Turkey (CMB). First of all, it is important to chose a broker who has a required licenses. Broker’s technological structure is also crucial, quick, reliable order transmission will give confidence to investors. Nevertheless, reachability, trainning comprehension and advantages that provided are come into prominence.

Leverage allows investors to open a transaction in larger sizes system. İn this way, with small deposit investors can open a larger size of transactions. Maximum allowed leverage ratio by Capital Markets Board of Turkey (CMB) is 10:1 in Turkey.

Leverage ratios varies in different countries. At the present time, there are markets that is 500:1 leverage ratio.

When open a position, USD/TRY as represented in the market price of 2.90, 1 lot long (buy) 10:1 leverage with 1 lot of $10.000 that showed at the margin $100,000 size of the position to be treated as $100,000. TL equivalent of your investment will be £ 290,000. When the market price go up to 2.95 with $10.000 marjin $100,000 investment provision will 295.000 TL. For this transaction required marjin is only $10.000, for related provision the earning will be $ 5,000.

Value should be in accout to open a new position.

We deduct for open position used margin from initial martin to get free margin, it is the value that has to be in an account to open a new position.

Margin call accours when the assets goes under the used margin. When this value come under firm’s determined level of stop level, open positions will be automatically closed starding from the most losing positions.

In general, the required minimum margin 50.000 TL or equal currency amount for open a position must have in your account.

As long as the forex market is open for the instrument that wanted to trade, 5/24 transactions can be send to the system. You can send your transactions by personel computers, smart phones, tablets and calling our head office.

Trading hours is 5/24 in Turkey. Because of time difference, market might closed at 11:00 P.M. on Fridays.

Client’s deposit is stored in Takasbank, as a personel sub-account under brokerage firms account. You can access your personel account information from the E-Devlet application https://www.turkiye.gov.tr/ .

Although differ from country to country, major currencies come into prominence for instrument preference. URUSD, GBPUSD, USDJPY, Gold and Oil are the most traded instruments all around the World.

When we take a close look for traders instrument choice in Turkey, EURUSD, USDTRY and Gold come into prominence.

Brokerage firms earn their ıncome only from spread rates that they offer to their clients.

When the open position remain for the next day there will be a swap profit or loss. The next day swap cost will be reflected to client’s accounts. The swap cost or gain depends of which instruments has been traded.

Parity: Is the ratio between the currencies of different countries. The first currency called base and the second currency called opposite currency.

Spread: Is the difference between buy and sell price.

Pip: Is the forth decimal value indicating the size of the instant price changes in exchange rates.

Point: Is the fifth decimal value indicating the size of the instant price changes in exchange rates.

Swap is the interest rates difference between base and opposite currencies that reflected to client’s account. It calculated overnight and transferred to client’s accounts at 00:00.

Market provides a chance to transact orders with different types of orders. You can use market orders, buy stop, sell stop, buy limit, sell limit, take profit and stop loss to transact. In addition to this, you can also use trailing orders.

Forex market is sensative to any news flow, treated using leverage 5/24. Under these conditions, it is essencial to follow news and data flow closely, leverage ratio should be set right. If necessary, take profit/stop loss orders must be used to relatively minimize the risk.

When we consider forex market since 2011, there was a rapid growth in the number of brokarege firms and employment. In addition to this, the number of investors and trading volume has also increased at the same rate. Specially, with the goal of being a financial center in our country, as part of training and Financial Literacy increased the number of conscious investors, it is expected to continue interest in the Forex market.

There are no commissions in Forex trading. In stock market, where, there are commissions fee and spread cost, there is only a spread cost in forex market.

There are 3 different types of margin;

Transactions margin: it is the minimum deposit amount that has to be in an account to open a transaction.

Free margin: it is the deposit that has to be in an account after opening transaction, at the same time, it is a margin that profit and loss amount are added or deleted.

Used margin: it is the type of margin that is blocked for continuation of open taransactions by brokarege firms.

Buying price, indicates the price at which the investor can sell.

Selling price indicates the price at which investors can purchase.

Transaction unit called for lot in the Forex market.

It is a instant buy and sell orders that have occurred in the market.

Buy Stop: is the type of order that allows to buy at a price greater that the current price.

Sell Stop: is the type of order that allows to sell at a price lower that the current price.

Buy Limit: is the type of order that allows to buy at a price lower that the current price.

Sell Limit: is the type of order that allows to sell at a price greater that the current price.

Take Profit: is the type of order that allows to close an open positions when it comes to a predetermined price level and take profit.

Stop Loss: is the type of order that allows to close an open positions when it comes to a predetermined price level and stop further loss.

You can carry on your open positions long-term in the Forex market. To take into consideration, when you are not following your open positions in a specific time frame, there would be a economic development which might cause excessive price movements and depending on instruments swap ratio cost.

It means a buy position. When the investors estimate increase on relevant market price open a long position. For example, if the investor expect Euro to increase in value againt Dollar, he/she open a long position on EURUSD parity to make a profit.

It means a sell position. When the investors estimate decrease on relevant market price open a short position. For example, if the investor expect Euro to decrease in value againt Dollar, he/she open a short position on EURUSD parity to make a profit.

The long position with short, the short position with long is not closed in Forex market. After opened a short or long position, positions closed by using “close” button it order window to end transactions.

Suppose we open 1 lot long position in USDTRY parity. Let us assume that the parity rose to 2.91 level after buying 1 lot at 2.90 parity level. In case, it consists of 100 pips and a profit of 10 TL is obtained for each pip movement.

Profit= 10 X 100= 1,000 TL

Income derived in Forex tarding is subject to tax. Proceeds from this transaction is not subject to declaration under provisional article 67 of tax code, it is subject to personel declaration. Notification of the declaration prepared under the responsibility of the investors.

First of all, Stock markets are institutional structures with a physical center. On the other hand, Forex market works as a over the counter (OTC) does not have a physical center. The other differences are as follows; Forex market trading hours is 5/24, Stock market hours takes place at a certain time. Leverage ratio is different between stock and forex markets in Turkey. Furthermore, Because of high liquidity, Forex market did not give opportunity for manipulation, Stock market may contain such risk. Finally, there is a physical delivery in Stock market, in Forex it is targeted to make profit by selling and buying the currencies, in this way, market is differentiated by the intended markets.

At first, you should determine the correct leverage ratio. High leverage ratio gives high profit opportunuty but contain risk at the same time, it is essential to determine right strategy. It is important to have a understanding about the insturuments and have a experience in what conditions price goes up or down can increase the number of successful transactions. To have detailed information on the use of take profit and stop loss orders is also important. Before starting the real transactions, get extensive traininig about MT4 platform, fundamental and tecnical analysis and managing open positions in a specific disipline is essencial for successful trading. You can call your client represantative for more information.

As AHL Forex, we assist and raise awareness of our existing and potential investors with various trainings. In this line of thinking, we share seminar, webinar, video analysis, periodic bulletins and over all market expectations, reports, reviews. Also, by connecting to a personel computers with remote access, organize office seminars and if there is a request, we visit investors adresses of the residence and provide services to our clients.