Trading in the Global Currency Markets by Cornelius Luca
Forex is very popular with individual traders, yet there are few comprehensive manuals on Forex trading. Most of such books touch upon some basic functioning principles of financial markets, paying no attention to Forex as a leading market.
Trading in the Global Currency Markets written by Cornelius Luca in the late 1990s is now topical more than ever. The author has developed a true manual guide to trading currencies and Forex futures. Besides the history of Forex, the book considers the principles of Forex functioning from the perspectives of market experts and big trading participants ensuring market liquidity.
The book could be split into two parts. The first one deals with the principles of trading Forex options. Beginners may find this part hard to understand as the principles described by the author require knowledge in option trading. Currency options are known to have certain peculiarities as compared to commodity and equity options. The author dwells upon key concepts, methods, and strategies of option trading and offers analysis models to detect a probability of option price changes proceeding from underlying assets.
As to the second part of the book, it provides an overview of Forex history and specifics of trading on the currency market from the standpoints of both market makers and individual traders. Moreover, the author also puts high emphasis on technical analysis of the currency market. The book outlines the main chart and candlestick patterns and also concerns the Elliott Wave Theory, which is so widely used nowadays. This part of the book will be especially helpful for novices because the author covers the particularities of applying technical analysis to the foreign exchange market. It should be remembered that the price behaviour on Forex is different from that on the commodity and stock markets. Apart from chart patterns, there are also the ways of analyzing indicators and W.D. Gann Theory, that is still a mystery to most of traders.
The book has a Forex-related glossary too. Even though some terms are not employed on the market today because e-trading prevails over trading via a broker, the glossary will help a beginning trader to grasp the idea of currency trading and eliminate the very possibility of misunderstandings about the book.