A Brief Review Of Currency Trading For Dummies - Nike Heels

Traders try to predict fluctuations in the exchange rate and bet on the pairs that will give them the largest gains on their bet Jordan High Heels. When one country's currency is being traded against another country's currency, it is call a "pair".

All of the major pairs that are traded involve the US dollar Nike Air Foamposites. When a currency pair is being traded that does not involve the US, it is called a "cross currency pair.

" An example of a cross currency pair would be EUR/JPY (Euro/Japanese Yen) nike air max 90 . The most actively traded cross currency pairs are the EUR, JPY, and the GBP (sterling pound or British currency).

There are a couple of important things to know about how the pairs are shown Nike Heels. First, the stronger currency is traditionally listed on the left.

So, when you see EUR/USD, you know that the Euro is stronger than the US dollar. This stronger currency, the one on the left, is called the "base currency." The base currency is what you buy or sell. So, if you buy 10000 EUR you are automatically selling 10000 USD.On paper it would look like this, 10000 EUR/USD. The currency on the right is called the "counter currency" or "secondary currency." The value of this currency when you buy or sell your base currency will determine what your profit or loss is on your trade.Now, multiply the previous paragraphs into thousands of trades happening every minute of every day and you get an idea of how fast the market moves. Forex is very, very fast. The currency rates are constantly on the move. Some of the pairs are lower risk and some are extremely high risk.