Top Forex Trading for Beginners | Global Trade Investment Solutions
Foreign exchange (also known as forex or FX) refers to the global, over-the-counter market (OTC) where traders, investors, institutions and banks, exchange, speculate on, buy and sell world currencies.
Trades & Key Terminology
A 'position' is the term used to describe a trade in progress. A long position means a trader has bought a currency expecting its value to increase. Once the trader sells (http://myglobalinvests.com/
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An investor going short on the EUR would sell 1 EUR for 1.0916 USD. This trader expects the euro to depreciate, and plans to buy it back at a lower rate if it does.
Understanding Currency Pairs
All transactions made on the forex market involve the simultaneous purchasing and selling of two currencies.
These are called 'currency pairs', and include a base currency and a quote currency. The diagram below represents the forex pair EUR/USD (Euro/US Dollar), one of the most common currency pairs traded on the forex market.
Which Forex Pairs Can You Trade?
Forex currency pairs are known as majors, minors, and exotics.Major currency pairs are made up of the most frequently traded currencies, which are:
· USD - The US Dollar
· EUR - The Euro
· JPY - The Japanese Yen
· GBP - The British Pound
· CHF - The Swiss Franc
· CAD - The Canadian Dollar
· AUD - The Australian Dollar
· NZD - The New Zealand Dollar
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