Courses Infomation

Volatility Position Risk Management by Cynthia Kase

Forex Trading – Foreign Exchange Course

You want to learn about Forex?

Foreign exchange, or forex, is the conversion of one country’s currency into another.
In a free economy, a country’s currency is valued according to the laws of supply and demand.
In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies.
A country’s currency value may also be set by the country’s government.
However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation.

Cynthia Kase, president of Kase and Co., Cta, is considered by many to be the energy market’s premier technical analyst and hedging advisor. Educated as an engineer, she worked as a trader and risk manager for Chevron, Chemical Bank, and the Saudi Oil Ministry’s consulting arm, Petronal, before launching her company in 1992, which primarily focuses on providing trading and hedging strategies, software and solutions to the energy market, but also offers a trading toolbox, StatWare, on a range of trading platforms. She has been the winner of the Market Technicians Association’s Best of the Best Award, 1997, received the Key Women in Energy Award twice, first in 2002 for Vision and in 2004 for Innovation and Creativity, and in 2007 became the first American to be awarded the coveted Master of Technical Financial Analysis diploma from the International Federation of Technical Analysts.

Stocks & Commodities Editor Jayanthi Gopalakrishnan interviewed Kase on November 1, 2008.

What is forex?

Quite simply, it’s the global market that allows one to trade two currencies against each other.

If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit.

If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting.

Foreign Exchange
You go up to the counter and notice a screen displaying different exchange rates for different currencies.

An exchange rate is the relative price of two currencies from two different countries.

You find “Japanese yen” and think to yourself, “WOW! My one dollar is worth 100 yen?! And I have ten dollars! I’m going to be rich!!!”
When you do this, you’ve essentially participated in the forex market!

You’ve exchanged one currency for another.

Or in forex trading terms, assuming you’re an American visiting Japan, you’ve sold dollars and bought yen.

Currency Exchange

Before you fly back home, you stop by the currency exchange booth to exchange the yen that you miraculously have left over (Tokyo is expensive!) and notice the exchange rates have changed.

It’s these changes in the exchange rates that allow you to make money in the foreign exchange market.

Salepage : Volatility Position Risk Management by Cynthia Kase