Currencies are traded in dollar amounts called "lots". One much equals $ 1,000, which controls $ 100,000 in foreign currency. This is what is known as the "margin". You can control $ 100,000
currency value of only $ 1,000. This is what is known as "high leverage".
Currencies are always traded in pairs in the FOREX. The couples have a unique notation that expresses what currencies are marketed. The symbol for a currency pair is always be in the form ABC / DEF. ABC / DEF is not a real currency pair, is an example of a symbol for a currency pair. In this example, ABC is the symbol of a countries currency and DEF is the symbol of another currency countries.
Here are some common symbols used in the Forex:
USD - U.S. Dollar
EUR - The currency of the European Union "EURO"
GBP - Pound Sterling
JPN - Japanese Yen
CHF - The Swiss franc
AUD - Australian Dollar
CAD - Canadian Dollar
There are symbols for other currencies, but these
are the most commonly traded.
A currency can not be traded by itself. It can not growing trade in euros for himself. Always compare an currency with another currency to make change possible.
Some of the most common pairs are:
EUR / USD Euro / U.S. Dollar
"Euro"
USD / JPY U.S. Dollar / Japanese Yen
"Dollar Yen"
GBP / USD British Pound / U.S. Dollar
"Cable"
USD / CAD U.S. Dollar / Canadian Dollar
"Dollar Canada"
AUD / USD Australian Dollar / U.S. Dollar
"Aussie Dollar"
USD / CHF U.S. Dollar / Swiss Franc
"Swiss franc"
EUR / JPY Euro / Japanese Yen
"Euro Yen"
The list of currency pairs above look like a fraction. The numerator (top of the section or "left" of the / however they want to see) is called the base currency. The denominator (bottom of the fraction or "Right" / As you will see) is called the counter currency. When you place an order to buy the EUR / USD, for example, are actually buying the EUR and sell USD. If would sell the pair, it would sell the euro buying the USD. So if you buy or sell a currency pair, which is buying / selling the base currency. They are always doing the opposite of what he did with the base currency with the currency.
If this seems confusing then you're in luck. You can always get by with just thinking about the couple all as an element. Then just buy or sell that item one. Thought still allows you to place trades. Only
should be aware of the concept of base / counter Fundamental Rights Topics of analysis.
Why is it important to know about the base / counter currency? The base / currency concept illustrates
what is really happening in a foreign exchange transaction. Some of you reading this, know that short selling was limited in the stock market * (Short-selling is where you sell a stock / cash / item / product and then try to buy back to a lower price later). But in the FOREX is Always buy a currency (base) and selling another (Counter). If you sell the pair you are simply turning one who buys and sells. The transaction is essentially the same. This allows you to sell short without restrictions.
currency value of only $ 1,000. This is what is known as "high leverage".
Currencies are always traded in pairs in the FOREX. The couples have a unique notation that expresses what currencies are marketed. The symbol for a currency pair is always be in the form ABC / DEF. ABC / DEF is not a real currency pair, is an example of a symbol for a currency pair. In this example, ABC is the symbol of a countries currency and DEF is the symbol of another currency countries.
Here are some common symbols used in the Forex:
USD - U.S. Dollar
EUR - The currency of the European Union "EURO"
GBP - Pound Sterling
JPN - Japanese Yen
CHF - The Swiss franc
AUD - Australian Dollar
CAD - Canadian Dollar
There are symbols for other currencies, but these
are the most commonly traded.
A currency can not be traded by itself. It can not growing trade in euros for himself. Always compare an currency with another currency to make change possible.
Some of the most common pairs are:
EUR / USD Euro / U.S. Dollar
"Euro"
USD / JPY U.S. Dollar / Japanese Yen
"Dollar Yen"
GBP / USD British Pound / U.S. Dollar
"Cable"
USD / CAD U.S. Dollar / Canadian Dollar
"Dollar Canada"
AUD / USD Australian Dollar / U.S. Dollar
"Aussie Dollar"
USD / CHF U.S. Dollar / Swiss Franc
"Swiss franc"
EUR / JPY Euro / Japanese Yen
"Euro Yen"
The list of currency pairs above look like a fraction. The numerator (top of the section or "left" of the / however they want to see) is called the base currency. The denominator (bottom of the fraction or "Right" / As you will see) is called the counter currency. When you place an order to buy the EUR / USD, for example, are actually buying the EUR and sell USD. If would sell the pair, it would sell the euro buying the USD. So if you buy or sell a currency pair, which is buying / selling the base currency. They are always doing the opposite of what he did with the base currency with the currency.
If this seems confusing then you're in luck. You can always get by with just thinking about the couple all as an element. Then just buy or sell that item one. Thought still allows you to place trades. Only
should be aware of the concept of base / counter Fundamental Rights Topics of analysis.
Why is it important to know about the base / counter currency? The base / currency concept illustrates
what is really happening in a foreign exchange transaction. Some of you reading this, know that short selling was limited in the stock market * (Short-selling is where you sell a stock / cash / item / product and then try to buy back to a lower price later). But in the FOREX is Always buy a currency (base) and selling another (Counter). If you sell the pair you are simply turning one who buys and sells. The transaction is essentially the same. This allows you to sell short without restrictions.
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