U N

T H E
D E R S T A
BA S IC S O F
 www.fairmarkets.mu

UNDERSTANDING THE BASICS OF TRADING

What is
Forex?
Forex (or FX) is short for Foreign On Forex markets, you do not
Exchange market. The actually purchase the currency. You
fundamental idea is to exchange simply make a prediction: X currency
one currency for another to gain will gain value over Y currency in a
profit. given time.
If you exchanged currencies Traders make educated guesses by
before, you know that as a result analyzing the economy, past trends
of the exchange you either gain and major expected events. This
or lose money. It depends on how process is called ‘trading forex’.
one currency gained more value The more technical term is trading
than the other since your Contracts for Difference (CFDs). We will
purchase. learn more about CFDs other than FX
later.
BASIC FX TERMS
Currency Pair : Quotation of one currency against another. The most common
pair is the Euro and US Dollar: EURUSD. The first one is called the Base
Currency., while the second is called the Quote Currency.
CFD : Contract for Difference

1
 www.fairmarkets.mu

Forex How to Trade

Trading
Trading Forex is all about observing the currency FX Traders sign up with online trading
pairs and their respective values over one another. If brokers such as FairMarkets to trade in FX
you can predict the direction of the market, you market. Brokers provide
make profit. It’s simple as that. avccess to trading
The most commonly traded pair is Euro and U.S. platforms.
Dollars. They are shortened as EUR and USD. Traders start live accounts, deposit
Let’s use it as an example: investments and then open positions. Since
Judging by the current economic developments, an trading with margin is possible in FX markets,
FX trader believes EUR will gain value over USD brokers offer leverage to their clients. This
today. So, they take a position in the forex market means you can trade up to 400 times more
and invest. If the market moves in the expected than your actual investment.
direction, they will profit. If not, they will lose. In other words, you use margin to create
leverage
BASIC FX when trading.
PIP: Point In Bid Price: For
TERMS
Ask Price: For Spread: The Margin: Leverage:
Percentage. how much how much difference Minimum Ability to
It’s the you can you can in buying amount of trade larger
smallest sell a buy a and selling funds you positions than
amount of currency currency prices. need to trade. your actual
change in a pair. pair. account
currency balance.
pair.

2
 www.fairmarkets.mu

HOW TO START AN FX ACCOUNT

Before starting to trade, it is advised to practice your skills with a free
demo account. Once you grasp the basics, you can start trading with
your live account immediately.

Demo Account
A demo account has virtual Start by filling out our quick
currency and poses no risk to your form on the registration
actual capital. You don’t have to page.
deposit to start practicing. Select “Open Your Account”
Click here to sign up for an and proceed to the secure
account and follow the steps client area.
below: Once you decide if you want
to practice or start trading
right away, follow the process
and finish your application.
Either way, you will receive
your login details for trading
platform via e-mail shortly.

3
 www.fairmarkets.mu

How to Install Trading

Start by downloading Platforms Feel like trading on-
the
trading platform you chose the-go? Download the
while signing up. apps to your mobile
You have a wide range of devices instantly!
options here: Either Once the software is
download the desktop ready on your device, login
version or use your browser with the details you
as the received from us via e-mail.
user
interface.
METATRADER
MetaTrader (MT) is a common, efficient and easy-to-use
trading platform.
FairMarkets provides you access to both MT4 and MT5
platforms.

4
 www.fairmarkets.mu

Hold on to this information as Your trade transaction log is

you will need it if you ever seen below the chart. Notice
login on a new device. that your account balance
Once logged in to your demo reflects the selected amount
account, you will see currency for this demo account. Your
pairs on the orders and free margin – the
left-hand side with live quotes. percentage of deposit you
On the right panel, you will see need available to trade – will
a chart. be visible here.

Right clicking (or long tapping You are all set for practice
on mobile) will give you options trading with FairMarkets!
to tweak this dashboard.

5
 www.fairmarkets.mu

Trade
This is your trading page. Go example
If you clicked SELL and the
ahead and familiarize yourself with the price kept going down, you will
menus and buttons. To learn more notice that you are profiting. In
about using the platform, please visit the opposite case, you would see
our Videos section for tutorials. a negative value. Either way, you
For the purpose of this demo, we will can close your position anytime
simulate trading EURUSD, one of the you want.
most traded FX pair. Alternatively, you could place a
Notice that there is a downwards new order with certain conditions.
trend for the past hour. This means the Click the icon in red square or long-
market is currently bearish and the tap the graph and you will see a
traders are mostly selling rather more detailed order menu.
than buying. Notice that you can set certain
Top left corner of the graph shows you conditions for your order. Thinking
current buying and selling prices for the price will increase? Place a
positions. The 0.01 buy order with a target price
is the lot, your trading volume. using Take Profit. To minimize
possible losses, set a Stop Loss
If you were to click either SELL or BUY function.
here, the system will first ask
permission for ‘One-click When you’re ready to close your
Trading’. position, right-click or long-tap the
order and ¬select
After your confirmation, you will start ‘Close Position’.
trading immediately. You will open a
position based on the current market Congratulations! You have just
price, joining the millions of traded
other traders in the Forex!
6
market.
 www.fairmarkets.mu

Crunching the
numbers
Example for Buying (Going Long) Example for Selling (Going Short) When should you buy/sell?
Let’s say you deposited You have 4,000 USD in your CFD markets such as Forex
5000$ in your account. You account. You opened a sell are always volatile and
entered the position with one lot unpredictable. There is no
market when the price for (100,000 units) at 1% margin clear ‘winning formula’.
EURUSD is 1.11000. You buy (100:1 leverage). Currently Experienced traders develop
one lot (100,000 units) with EURUSD is at 1.2000. So, we their own systems over time
Euro at 1% margin (100:1 set aside 1,200 USD in your by studying the market and
leverage). We set aside 1,100 account to open this position. using analytics tools.
USD in your account to open With leverage, your lot is FairMarkets customers enjoy
this position. now worth 120,000 USD. As a wide variety of assistance
With leverage, your lot is you predicted, the price tools to make informed
now worth 110,000 USD decreased and EURUSD is decisions.Check our selection
while trading. Meanwhile, now 1.18000. You close the of tools, analytics and
you have 3,900$ free position and make 2000$ newsletters to
margin left in your account. profit. gather more information
As you predicted, the price Your profit is immediately about the market.
increased and EURUSD is reflected to your balance. Alternatively, you can
now 1.12000. You close You get back your initial check our PAMM platform
the position and make 1000 $ deposit of 1,200 USD. Now where experienced
profit. Your profit is you have 6,000$. If you kept traders securely
immediately reflected to your the position open overnight, share their strategy with
account balance. You get back you will pay and earn interest investors while sharing their
your initial deposit as well. You for both currencies as a profits. This is a smart
now have 6,000$. If you kept result. solution for traders who lack
the position open overnight, experience or time to trade
you will pay and earn interest Forex regularly. 7
for both currencies as a result.
Because you borrowed EUR
 www.fairmarkets.mu

How to
To trade in the Forex markets, you deposit
Once the process is complete,
need to provide a certain amount of your balance will reflect the change.
margin. You can deposit the amount Also, you will receive a confirmation
you want to trade into your mail from us shortly.
Fairmarkets account easily. Got comfortable trading on a demo
Login to your Secure Client Area account by now? Then it’s
(SCA) by clicking “MyFairMarkets” on time for a live run!
our home page. Login to your trading platform with
Deposit page greets you with your live account details and join
several options for topping up your the millions of FX traders. The
account. Choose your method and process is exactly the same as
proceed with the payment. The demo trading.
quickest method is using a Got questions? Contact our experts via
Bank/Credit Card. Live Chat, phone or e-mail
24 hours!

8
 www.fairmarkets.mu

TRADING WITH FAIRMARKETS

We value your business and do our best to become your
innovative, long-term trading partner. We provide bonuses,
advanced trading and analytics tools to equip you for the
challenges of the market.
Top reasons why you should start your trading journey with us:

Ultra-tight Wide Range of Innovative BVI Regulated Lightning-fast Customer

Spreads Products Technology Broker Execution Support 24/5

9
 www.fairmarkets.mu

CHECK OUT THE WELCOME PACK!

55% 25%
FIRST DEPOSIT BONUS RE-DEPOSIT BONUS
Available to all clients Available to all clients

Up to 5500$ Up to 5500$

Free tools & 24/5 Customer Support

Education

1
0
 www.fairmarkets.mu

WHAT ELSE IS OUT THERE?

While Forex is the most popular form of CFDs, we offer numerous other products to our
clients. Producsts such as Equities, Indices and Commodities are great ways to diversify
your portfolio and minimize your investment risks.

Equities Indices Commodities

Also called Shares or An index is a group of Traders looking for less
Stocks, they represent a company shares traded volatile products enjoy
percentage of a publicly together. trading commodities
listed company. Similar Grouped shares gain and such as gold, oil, gas or
to Forex, you can trade lose value together as cotton.
Equities as Contracts for shares of big companies Global events, weather
Difference (CFDs) on our usually set the pace and conditions and major
platforms. value. economic developments
You do not actually buy Fairmarkets offers you a determine prices of these
the shares of these top selection of over 20 products which tend to
companies. You simply take baskets such as DAX30, keep their trends more
a position in the market, NAS100 and SP500, either straightforward compared
saying “These shares will spot or in futures to unpredictable markets
increase/decrease in value contracts form. such as Forex. We offer a
in a given time period.” wide range of
This way, you can make commodities from oil and
profit even if the shares silver to cocoa and
are actually losing value. coffee! To see the full list
of our products and
benchmark prices, please
check our Market Information 1
Sheets. 1