john1025 Posted March 16, 2010 Report Share Posted March 16, 2010 Hi All!These are the forex trading terms which every trader needs to know before he or she even starts the first trade.Quite simply, they are the essentials!1. Currency PairsEvery transaction involves a pair of currencies since a trade is basically the selling of one currency and buying of the other.2. Major and Minor CurrenciesThere are 7 major currencies traded online. They are USD, EUR, JPY, GBP, CHF, CAD and AUD. The rest are all minor currencies. Amongst these, some of the more frequently traded ones are the South African Rand (ZAR), the Singapore Dollar (SGD) and New Zealand Dollar (NZD).3. Base CurrencyThe base currency is the first currency in the pair as a measure of its value against the second currency. For example, a GBP/USD = 1.7100 means that 1 GBP is worth 1.7100 USD.4. Quote CurrencyThe quote currency is the second currency in the pair. Any profit or loss is a measure of this currency.5. Cross CurrencyA cross currency is a pair which neither of them is the USD. These pairs often experience intricate price movements because each trade actually involves the buying and selling of 2 different currency pairs. For instance, when buying a EUR/GBP, you are actually buying a EUR/USD pair and at the same time selling a GBP/USD pair. The transaction costs are often higher for such trades.6. PipsWhat is a pip? 1 pip is the smallest unit of price for any foreign currency. Most currency pairs consist of 5 digits and the pip represents the smallest change in the fourth decimal place, ie 0.0001.These are the core forex trading terms that all professional forex traders should get familiar with. Since each trade cannot depart from them, it does make sense to find out more.Hope you find this usefulSheilaakaJohn1025. Link to comment Share on other sites More sharing options...
kk4jl@home Posted March 16, 2010 Report Share Posted March 16, 2010 Good to know,Thanks Link to comment Share on other sites More sharing options...
mrref Posted March 16, 2010 Report Share Posted March 16, 2010 Man thats stuff is way over my head help "e" lol Link to comment Share on other sites More sharing options...
morrisw2 Posted March 16, 2010 Report Share Posted March 16, 2010 WHEN the IQD RVs and is on the FOREX, do you think we will be able to trade the USD/IQD pair? Link to comment Share on other sites More sharing options...
nene Posted March 16, 2010 Report Share Posted March 16, 2010 Ofcourse morrisw2 and IQD/USD and IQD/EUR and EUR/IQD and so on. Link to comment Share on other sites More sharing options...
blulightning Posted March 16, 2010 Report Share Posted March 16, 2010 Thanks for the post. Link to comment Share on other sites More sharing options...
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