Beginner’s Guide Introduction to Forex

[TopGambler]

Hey everyone
Thought I would share a quick intro for anyone new to forex I remember when I first started it was all confusing so here is the basics broken down

What is Forex
Forex means Foreign Exchange its the global market where currencies are traded Its huge with over 7 trillion dollars traded every day and it runs 24 hours a day 5 days a week
Basically you trade one currency against another If you think one currency will get stronger you buy it against the other
Example if you think the Euro will go up against the US Dollar you buy the EURUSD pair

Currency Pairs Major Minor Exotic
Forex trades currency pairs Every trade means buying one currency and selling another
There are three main types
Major pairs always include the US Dollar and are the most traded pairs like EURUSD GBPUSD and USDJPY
Minor pairs dont include the USD but have other majors like EURGBP AUDJPY and GBPCHF
Exotic pairs are made of one major currency and one from an emerging market like USDTRY or EURZAR

Base vs Quote Currency
Each pair has two parts
The base currency is the first one This is the currency you buy or sell
The quote currency is the second one It shows the price of the base currency
Example EURUSD 11000 means 1 Euro equals 1.1 US Dollar
Tip if you buy EURUSD you think Euro will rise if you sell EURUSD you think Euro will fall

Hope this helps