 |
The Seven Most Traded Currencies in FOREX.
Currencies are traded in dollar amounts called "lots". One lot
is equal to $1,000, which controls $100,000 in currency. This is
what is known as the "margin". You can control $100,000 worth of
currency for only 1,000 dollars. This is what is called "High
Leverage".
Currencies are always traded in pairs in the FOREX. The pairs
have a unique notation that expresses what currencies are being
traded. The symbol for a currency pair will always be in the form
ABC/DEF. ABC/DEF is not a real currency pair, it is an example of
a symbol for a currency pair. In this example ABC is the symbol
for one countries currency and DEF is the symbol for another
countries currency.
Here are some of the common symbols used in the Forex:
USD - The US Dollar
EUR - The currency of the European Union "EURO"
GBP - The British Pound
JPN - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar
There are symbols for other currencies as well, but these are
the most commonly traded ones.
A currency can never be traded by itself. So you can not ever
trade a EUR by itself. You always need to compare one currency
with another currency to make a trade possible.
Some of the common PAIRS are:
EUR/USD Euro / US Dollar
"Euro"
USD/JPY US Dollar / Japanese Yen
"Dollar Yen"
GBP/USD British Pound / US Dollar
"Cable"
USD/CAD US Dollar / Canadian Dollar
"Dollar Canada"
AUD/USD Australian Dollar/US Dollar
"Aussie Dollar"
USD/CHF US Dollar / Swiss Franc
"Swissy"
EUR/JPY Euro / Japanese Yen
"Euro Yen"
The listed currency pairs above look like a fraction. The
numerator (top of the fraction or "left" of the / however you
want to SEE it) is called the base currency. The denominator
(bottom of the fraction or "right" of the /however you want to
SEE it) is called the counter currency. When you place an order
to buy the EUR/USD, for instance, you are actually buying the EUR
and selling the USD. If you were to sell the pair, you would be
selling the EUR and buying the USD. So if you buy or sell a
currency PAIR, you are buying/selling the base currency. You are
always doing the opposite of what you did with to base currency
with the counter currency.
If this seems confusing then you're in luck. You can always
get by with just thinking of the entire pair as one item. Then
you are just buying or selling that one item. Thinking like this
will still enable you to place trades. You only need to be aware
of the base/counter concept for Fundamental Analysis issues.
So why is it important to know about the base/counter
currency? The base/counter currency concept illustrates what is
actually taking place in a Forex transaction. Some of you reading
this, know that short-selling was restricted in the stock market
*(Short-selling is where you sell a
stock/currency/option/commodity first and then try to buy it back
at a lower price later). But in the FOREX you are always buying
one currency (base) and selling another (counter). If you sell
the pair you are simply flipping which one you buy and which one
you sell. The transaction is essentially the same. This allows
you to short-sell with no restrictions.
You want to be able to short-sell with no restrictions so you
can make money when the market drops as well as when it rises.
The problem with traditional stock market trading is that the
market has to go up for you to make money. With FOREX trading you
can make money in all directions.
http://www.1-forex.com
Omar Vargas; FOREX Trader and Freelance writer.
http://www.1-forex.com
 MORE RESOURCES updated Fri. October / 19 / 2018
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
MENAFN.COM |
Foreign currency trading firm wins appealMENAFN.COM(MENAFN - Arab Times) 15-year jail to acquittal in drugs case. KUWAIT CITY, Oct 17: The Court of Appeals upheld the verdict issued by the Commercial Circuit of the Court of First Instance Court which dismissed the lawsuit filed by a Kuwaiti woman ... |
Google News
|
|
|
RELATED ARTICLES
Creativity in
Trading
"Is it important to be creative in your trading?" I'm not
sure I can describe it in terms of importance. The creative
process is somewhat of a mystery, even to scientists who
study it.
Advantages of Trading
FOREX Over Stocks and Commodities
There are many advantages to Trading FOREX as your main
income generator. Let's start by something that may be
worrying you already.
The Yin and the Yang of
Markets
I am reading a fantastic book on trading, first published
in 1924, by Richard D. Wyckoff, titled "How I Trade and
Invest in Stocks & Bonds".
The Miracle of
Forex
My father, who owns a small parts store and garage for
vintage British sports cars, called me up recently and
droned on and on about how he is getting killed by the
Euro. Confused as to how the Euro could possibly be
affecting his small and seemingly insignificant business, I
asked him how.
Discovering Turnaround
Candidates
There are many types of investment methodology out there.
All of them has their own merits.
Money Management - The
Holy Grail Of Trading
Money management determines how much to risk on each
individual trade. This is a vital element of any trading
system - risk too much and the chances of going bust are
too high, risk too little and the reward for trading is too
low.
Two Timeless Rules in
FOREX Investing
RULE #1) ~ Cut your losers; let your winners ride. One
important thing that every new trader must know before
entering this highly profitable business is that life is
not perfect, even in FOREX land, and you should always know
one fact: YOU WILL HAVE LOSING TRADES.
6 Critical Factors For
Successful Trading
Success in any profession can be broken down into a number
of critical factors. Trading is no different.
Money Management, Part
1
There are some common mistakes I've seen traders make in
the area of money management. First, let's understand what
money management is all about.
FOREX - Where Fortunes
Are Made Everyday
The Foreign Exchange Market - better known as FOREX - is a
world wide market for buying and selling currencies. It
handles a huge volume of transactions 24 hours a day, 5
days a week.
Forex Trading
Systems
The foreign exchange currency market is the largest market
in the world because it trades up to $1.9 trillion daily.
Trade Entry
Techniques
Most traders tend to concentrate on pinpointing the perfect
entry for a trade. However, in reality the entry price is
just one part of the equation.
How to Trade
Currency
We all know when you go on a trip to another country; you
need to take some travelers checks and some cash in the
currency of that country. This can be advantageous because
one country's currency is usually worth more or less than
the other.
The Basics of
Forex
Foreign exchange market is also known as Forex or FX
market. To date, it is the world's biggest "economic
bazaar".
Online Futures Trading -
Advantages and Disadvantages
What Is Online Futures Trading?A futures contract is an
agreement to buy or sell a commodity at a date in the
future. Everything about a futures contract is standardized
except its price.
Crisis of Confidence in
the EU
The European Union (EU) constitution was dealt a double
blow, first by a French "no" vote on 29-May and then by a
follow on "no" from the Netherlands on 01-Jun. To add
insult to injury, one low level Italian diplomat quickly
called for a referendum in Italy to decide if a return to
the lira was warranted.
Facts of Day
Trading
Are you thinking of entering the fast-paced world of day
trading? Arm yourselves with the information from this fact
sheet on day trading.What is day trading?Day trading is an
investment tactic that does online daily stock trading with
a relatively short investment.
Forex Trading -
Advantages and Disadvantages
What is Forex Trading? Forex, or Foreign Exchange, is the
simultaneous exchange of one country's currency for that of
another. This market of exchange has more daily volume,
both buyers and sellers, than any other in the world.
What is Forex
Trading?
Forex, or Foreign Exchange, is the simultaneous exchange of
one country's currency for that of another. The way it works
is an investor who wishes to purchase or sell one currency
for another with the hope of making a profit when the value
of the currencies change in favor of the investor.
Forex Trading Online - 7
Reasons Why You Should!
Forex trading online is a fast way to use your investment
capital to it's fullest. The Forex markets offer distinct
advantages to the small and large traders alike, making
Forex currency trading in many ways preferable to other
markets such as stocks, options or traditional futures.
|
Large inventory of office cubicle and partitions walls for sale in Northeast Ohio
Find home remodeling contractors Akron Ohio
|
|
|
currency trading forex currency trading online currency trading foreign currency trading currency forex learn
online trading currency forex online trading currency day trading currency trading system forex currency trading system currency
privateforextrader.com trading currency exchange trading e currency trading currency foreign privateforextrader.com trading book on currency
trading currency trading broker currency trading software day trading forex currency currency ireland trading online currency trading system
currency future trading day trading for the currency market online foreign currency trading fx currency trading forex currency trading
beginner forex training course currency trading currency day system trading currency trading course 4x currency trading currency trading
tutorial currency trading information foreign currency exchange trading currency global in market trading started in currency trading commodity
currency trading trading the global currency market international currency trading course in currency trading automated currency system
trading foreign currency trading software currency trading strategy currency forex learn trading currency make money trading currency
trading signal currency option trading currency forex market trading currency trading made easy chart currency trading currency trading
tip currency foreign forex trading currency demo trading currency trading forex spot rate learn currency trading basics currency trading
currency trading for beginner forex currency trading broker currency electronic trading currency game trading currency exchange foreign
forex trading interbank currency trading practice currency trading currency forex fx software software software trading free trading
currency guide tool online currency forex trading currency news trading best currency system trading currency trading account currency currency
forex forex learn online online trading online currency trading strategy currency trading platform currency forex learn online online trading
trading currency trading training company currency exchange foreign trading company currency forex trading currency euro trading currency
forex trader trading automated currency trading currency foreign system trading currency market trading currency option trading system currency
trading seminar business currency currency home internet trading trading canada currency trading spot currency trading currency exchange rate
trading currency forex pair trading using vantagepoint currency network neural trading boards currency forex trading how to start currency
trading currency trading australia currency forex tag trading currency forex trade trading currency insurance trading currency trading
education live currency trading online currency option trading advisor currency expert trading,
commodity currency future trading currency day foreign trading currency exchange link trading credit currency trading |
|
