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Understanding the Forex currency pairs

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  • Understanding the Forex currency pairs

    Many traders who begin with currency exchange are looking to make a profit from major currencies. An understanding of the relationship between two currencies helps to set expectations for profit and loss during a trade.

    First, it becomes important to understand the dynamics of the pair- which currency is base and which counters.
    The numbers make sense only after having set the correct relation. For instance the USD is almost always a 'base' currency. But, the GBP is a counter.
    Next, a look at the exchange rate between the two is important.

    There are basically three types of exchanged rates- fixed, adjustable, or floating.

    After you put it all together, you will understand the importance of the currency market.

  • #2
    The major currency pairs traded in the Forex Market are the :

    EUR/USD
    GBP/USD
    USD/JPY
    AUD/USD
    XAU/USD and the
    XBR/USD

    Knowing the characteristics of these currency pairs is very important for a trader to trade better and make profits. Here is an article that explains to you about this in detail.
    Understanding the major currency pairs and its characeristics will help a trader trade better. Lets look at the 4 major currency pairs

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    • #3
      What currency is XBR? Because I googled it just now and I came up with nothing?

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      • #4
        All currency trading is done in pairs. Unlike the stock market, where you can buy or sell a single stock, you have to buy one currency and sell another currency in theforex market.

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