FOREX GLOBAL CURRENCY

MARKET:ANALYSIS OF ITS FUNCTIONING

SCHEME Student: PARKHUTS YEVHEN

Scientific supervisor – D. Sc. (Economics) , Associate Professor S.V. Kuzminov

Language consultant - Cand. Sc. (Pedagogics), Associate Professor: G.I.

Miasoid

1. THE FOREX MARKET.2.HIERARCHY OF THE FOREX MARKET.3. MECHANISM OF ANALYSIS AND FORECASTING.4. TRADING STRATEGIES.5.TRADING TERMINAL МETA TRADER 4.6.CONSTRUCTION AND IMPLEMENTATION OF MY OWN STRATEGY.

PLAN

1.The object of my master's research is the international currency market FOREX2. The subject of the master's study is the mechanism of functioning of the global currency market FOREX3.The purpose of my master's research is the theoretical analysis of functioning of the global currency market FOREX and developing the trading strategy using online trading terminal MetaTrader 4.

Forex is a commonly used abbreviation for "foreign exchange," and it is typically used to describe trading in the foreign exchange market by investors and speculators .The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers. There are four major currency pairs that are traded most often in the foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD and USD/CHF.

MECHANISM OF ANALYSIS AND FORECASTIN ON FOREX

FUNDAMENTAL TECHNICALFundamental analysis is the interpretation of statistical reports and economic indicators :1.GDP2.EXPORT AND IMPORT3.INFLATION AND UNEMPLOYMENT.4.DISCOUNT RATE.5.THE POLICY OF THE CENTRAL BANK (INTERVENTIONS).

One of the underlying tenets of technical analysis is that historical price action predicts future price action. Technical analysis can be divided into two parts:1.Classic-based on learning and analyzing prices graphs.2.Computer-based on using methods of mathematic statistics.

Those trading in the foreign-exchange market rely on the same two basic forms of analysis that are used in the stock market: fundamental analysis and technical analysis. The uses of technical analysis in forex are much the same: price is assumed to reflect all news, and the charts are the objects of analysis.

TRADING STRATEGIES

IN <<FOMPAR GROUP S.A>> COMPANY THERE ARE A LOT OF DIFFERENT STRATEGIES ,IN FREE ACCES,WHICH CAN BE USED BY A TRADER IN HIS WORK .EACH TRADER CHOSES A STRATEGY THAT MEETS HIS MENTAL CHARACTERISTICS AND BUSINESS NEEDS.

THERE ARE THREE TYPES OF STRATEGIES

SHORT-TERM MEDIUM-TERM LONG-TERM

MetaTrader 4 is a trading platform developed by MetaQuotes Software for online trading in the forex market .MT4 provides tools and resources that allow traders to analyze price, place and manage trades, and employ automated trading techniques.

CONSTRUCTION AND REALISATION OF MY OWN STRATEGY

SYSTEM<<DAILY COT>>.

1.EUR/USD2.GBT/USD3.USD/CHF4.EUR/GBP

Money-management and risk-management:1.Use in trade just 12 % of money deposited.2.Тake-Profit max 40 points.3.Stop-Loss isn’t set.4.Trailing stop, for securing the money earned.

Technical indicators:1.Moving Average with a period 5.2.МA Simple 3.3.Data and reports from COT.4.MACD 3.5.1

Make analysis just for 4 currency pairs:

Gross Profit: 15 590.48 Gross Loss: 638.63 Total Net Profit: 14 951.85

Profit Factor: 24.41 Expected Payoff: 453.09

Absolute Drawdown:

0.00 Maximal Drawdown: 441.10 (0.71%)Relative

Drawdown:

0.71% (441.10)

THANK YOU FOR YOUR PRECIOUS ATTENTION