![]() The volatility of a currency pair shows price movements during a specific period. Most volatile forex pairsĬurrency pairs differ in terms of volatility levels and you can decide to trade highly volatile pairs, or pairs with lower volatility. So, if you hear traders saying that they bought the cable, it means that they have traded the GBP/USD currency pair. Traders give some of the most popular currency pairs specific nicknames. Exotics pairs – these contain one major currency and one from an emerging market.Minors – cross currency pairs that contain some of the other major currencies such as the EUR, JPY or GBP.Cross currency pairs – where the US dollar is neither a base or quoted currency.Major currency pairs – these contain the US dollar and are commonly thought to be among the most liquid pairs. ![]() There are different categories of currency pairs, such as: ![]() A sell order would be performed by selling the base currency and buying the quoted currency. For instance, the pair EUR/USD is quoted at 1.11 and so you will need $1.11 to buy €1.Įxecuting forex trade orders means that you buy the base currency and sell the quoted currency at the same time. In other words, it shows how many units of the quoted currency you will need to buy one unit of the base currency. The value following the currency pair denotes how many units of the quoted (second) currency equal one unit of the base currency. A currency pair comprises two different currencies, where the first is called the base currency and the second is the quote currency. All currencies are defined according to the international standard code or ISO currency code, and labelled with three-letter tags. Using different technical analysis indicators, fundamental analysis or both, you evaluate the future movement of one currency in relation to another. ![]() In simple terms, trading on the forex market means making profits by the purchase or short-selling of one or more currency pairs. If you decide to become a forex trader, you should start by learning how the market operates and what a currency pair is. The foreign exchange (forex) market is one of the biggest and most active markets. ![]()
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