HOW TO READ CURRENCY PAIRS

Currency Pair


Generally, each currency has a three-letter symbol. The first two letters identify the name of the country while the third letter identifies the name of the country’s currency.

For example AUD (Australian Dollar), JPY (Japanese Yen), CHF (Swiss Francs), and CAD (Canadian Dollar).

When trading currencies, trading is always done in pairs. You buy one currency, at the same time you sell another currency.

When matching a currency pair, the first currency is referred to as the base currency and the second currency as the quote currency.

The value of the base currency is fixed and unchanged which is 1. Quote currency has a variable value according to the market.

forex forex trading metatrader 4 metatrader 5 ftmo tradersway foreign exchange market forex market 10K – 100K forex trading for beginners forex news forex brokers currency trading forex live cfd trader cash fx currencies Best forex chart pattern, best forex signal provider, forex technical analysis, best price action strategy


When you buy, it means you have to pay using quote currency to buy 1 base currency.

In the diagram above, you have to pay 1.1302 U.S. Dollars to buy 1 Euro.

While selling, the exchange rate shows how much quote currency you can get by selling 1 base currency. As an example of the picture above, you will receive 1.1302 U.S. Dollars if selling 1 Euro.


Key Links:

What is Forex?
History of Forex?

What is traded in Forex?
Types of Currency Pair?


To get regular update related to forex market. Follow us on Telgram Channel

Comments

Post a Comment

Popular posts from this blog

THE BEST TIME TO TRADE FOREX

Image
Usually, the market will be very active when two or more markets  overlap at one time   and the   overlap time  which is very popular for traders to trade The  best time to trade   is during overlaps in trading periods between open markets. Overlaps equal higher price ranges, resulting in increased opportunities. Here’s a closer look at the three  overlappings  that happen every day: ===== US/LONDON ===== US/London  the  largest overlap  in the US/London market. For your information, 70% of all trades occur when these markets overlap because the  US dollar  and the  euro  are the two most common trading currencies. As the volatility ...
Read more

TYPES OF ORDERS

Image
Orders in Forex trading: There are many types of orders available in online forex trading. One of the most popular is the  Pending Order . What is meant by  pending order? If you want to trade at your target level, but the current price is not yet at the price you want, so you need to place a  pending order  in the place you want. If the current price touches the  pending order , the  pending order  will turn into your trading position. As long as it is not touched, the  pending order  will be there until it is deleted. Limit order in Forex: This limit order is like we want the current price to return to the previous price. Like a bus left behind the passengers, and then a bus makes a U-turn to pick up passengers. There are two types of order limits, namely: i) Buy limit You will place a pending order below the current price. An example of the current price of EURUSD is 1.1300. You want to buy it at 1.12800. So, you can place a pending  ...
Read more

BEST DAY TO TRADE FOREX

Image
We already know that the  London session   is the   busiest   compared to other sessions, but there are also a few days a week where all markets tend to show more movement. ===== Here are the best days to trade forex : =====  As you can see from the chart above, it is the best time to trade in the middle of the week following many big movements occurs.  On Fridays, the market usually moves fast until 12:00 pm and then moves slowly as it is close to the closing time of the session at 3:00 am. This means, we only work half a day on Fridays.  Busy times which all traders all over the world enter the market are usually the best time to trade as high volatility will provide a great opportunity to enter trading positions To get connected with forex market, connect with us on telegram channel:       VIP FOREX KING
Read more