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- What Is Forex Trading
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- Two Common Mistakes Of Forex Trading Beginners
- What Is A Forex Broker
- Who Are The Forex Market Players
- How Forex Charts Help You
- What Are Forex Currency Pairs
- Automated Forex Trading System
- Basic Strategies For Successful Forex Trading
What Are Forex Currency Pairs?
As an investor, you are always on the lookout for opportunities to earn lots of money. Forex trading offers that very opportunity because after all, it is the largest and the most liquid financial market in the world.
Foreign currencies trading basically involves the buying and selling of different currencies. Traders can choose from among sixteen different currencies. The concept is to buy a cheap currency and then sell at a higher currency. This is trading "in pairs."
Many forex traders usually stick to the major currencies, these include the US dollar, the Euro, Japanese Yen, Swiss Franc, Australian Dollar, British Pound and Canadian Dollar. While other currencies are also traded, these major currencies make up an overwhelming chunk of the forex market.
The advantage of trading in currencies is that they are far more stable than commodities. There is a lesser chance of incurring massive losses over a short period of time. However the risk does exist there it is important for the trader to make informed decisions.
Most Commonly Traded Currency Pairs
- EUR/USD
- USD/JPY
- GBP/USD
- USD/CHF
- AUD/USD
- USD/CAD
- NZD/USD
- EUR/GBP
- EUR/JPY
- GBP/JPY
- CHF/JPY
- GBP/CHF
- EUR/AUD
While these may be the most commonly traded pairs, you are certainly not limited to only these. Depending on your knowledge and the financial situation of the times, other currency pairs may be more profitable. Do it right and you can be sure that you will be rewarded massively.