Forex what you should know

Do you want to learn to trade in the foreign exchange market? Before we learn how to use any software currency trading, before contemplating the best times of the day for Forex trading, there are several conditions must be defined. Here are vital to trade currencies in terms of:

Currency Pairs: All forex trading currency comprises two parts, one that you buy, one that you are selling.


Major and minor currencies: the major currencies are as follows: United States dollars (USD);

European euro (euro); pound sterling (pounds sterling); and the Japanese yen); Australian dollar); Swiss franc); Canadian dollar (Canadian).

The base currency: the base currency is the first to refer to trade husband. The base currency is compared against the secondary currency. For example, the euro / dollar = 1.33300 means that the 1 euro (euro) and is worth 1.33300 U.S. $).

Quote Currency: This is the second time the currency mentioned in currency trading. The amount of money by, or lose is calculated from this currency.

Cross Currency: This is the trade that two of the currencies involved are the U.S. dollar. These trades actually buying and selling currency pairs different. Includes all currency trades U.S. dollar. Here example of this point: If you trade the euro / yen pair, you're actually buying the euro / dollar and the husband at the same time you sell Japanese Yen / USD pair. These occupations are usually tend to have higher commissions because they involve two of the crafts.

Points: points are the smallest rate of any currency. The PIP, the change in the fourth break decimals.

If you want to trade in the foreign exchange market, to identify six of these conditions.