If you are new to Forex Trading, let me briefly explain to you what Forex Trading is all about...
Forex is a short abbreviations for Foreign Exchange, which is the trade in foreign currencies. The Forex Market can also be known as FX Market. It is the place where currencies are bought and sold. The Forex Market is open 24-hours a day, 5 days a week. This Forex Trading market is based in four leading cities around the world which is;
- New York
- London
- Sydney
- Tokyo
| Currency | Abbreviation |
| US dollar | USD |
| Euro | EUR |
| British Pound | GBP |
| Japanese Yen | JPY |
| Swiss Franc | CHF |
| Canadian dollar | CAD |
| Singapore dollar | SGD |
| New Zealand Dollar | NZD |
Basics of Forex Trading
Forex currencies are always traded in pairs. E.g., (EUR / USD); (GBP / EUR); (USD / JPY) and more. The first currency is called the 'base' currency, the second is called the 'counter' or 'quote' currency. Example, when a pair is listed as; (USD / EUR); the USD is the base currency and the Euro is the counter currency.Foreign currencies are always traded in pairs. Example: (USD / EUR) (GBP / EUR) (JPY / USD) The first currency is called the 'base' currency, the second is called the 'counter' or 'quote' currency. When a pair is listed as: (EUR / USD) the Euro is the base currency and the US dollar is the counter currency.
For info, the USD currency is a world leading currency, hence it is listed as a base currency more than any other currency. It is quoted in the following way;
- EUR / USD 1.4925
Basic Forex terms
Before you start any Forex Trading, be sure to do your research and learn the following terms; especially if you are new to this Forex Trading.- Pip or point
Pip means Percentage In Point (PIP) also known as point. A pip is a rate's minimum price increasement in Forex trading. A pip of 0.0001 is most common. Sometimes quotes are abbreviated to the last two digits. A quote of 1.3565/1.3335 then will be abbreviated to 65 / 35
- Ask price
The ask price is the price for which the market is willing to sell the currency or for which a particular currency can be bought.
- Bid price
The bid price is the price for which a particular currency can be sold. The market is willing to pay this price for this currency.
- Spread
The spread is nothing more than the difference between bid and ask. To figure out the spread, just calculate the difference between the bid and ask price.
- Currency rate
The rate of a particular currency valued against another currency rate.
New to Forex: Join us today
By now, you should be able to understand the basic knowledge from the brief information above. Those are all you need to know to start your Forex Trading adventure. From time to time, I will share more tips and reviewed some of the best Forex brokers out there. All Forex Brokers will offer some kind of beginners guide for you to start with. By following these guides you'll learn how to trade Forex step-by-step. As soon as you get the hang of it, you'll understand that with some effort, almost everybody can trade Forex.All Forex brokers listed on this website offer some kind of beginner's guide. By following these guides for people who are new to Forex trading you'll learn how to trade Forex step-by-step. As soon as you get the hang of it you'll understand that with some effort almost everybody can trade Forex. Most of the online Forex Brokers will offer you a demo account for you to start learning and trade online with the real market but you will not be losing a single cents while using the demo account.
If you are really interested in Forex Trading, visit Easy Forex (Click HERE) and register for a demo account for FREE.
Join the lucrative Forex community today!
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