Forex Trading Basics Revised

Forex Trading Basics Revised

Submitted by adil on Tue, 02/05/2013 - 07:02

The online world of forex trading is massive and caters to every person, no matter experienced or novice in the field of trading. The best part about the trading is that everyone can get the chance to earn profit. For new comers, the following guidance will help them to a great extent.

Trade On Currency Pair:

Forex trading is all about trading on the pair of currencies. The trader has to perform buying and selling of two different currencies at one time. The trade on the pair of currencies actually refers to trade one currency for another. The trader is not bound to select the particular pair for every trade and is free to make selection from the vast number of available currencies. The most common pairs are: Euro/US Dollar, Pounds Sterling/US Dollar, US Dollar/Japanese Yen, US Dollar/Swiss Franc, US Dollar/Canadian Dollar, Australian Dollar/US Dollar and New Zealand Dollar/US Dollar.

Forex Quotes:

Forex quote is based on two numbers. The first one is known as bid, while the other one is termed as offer. For the novice traders, it seems little difficult to understand, however with time it gets easier. For instance: yyy.yy/zzz.zz is the quote in which first one is the offer price or the base currency and the second one is the offer price.

Other Fundamentals of Forex Trading:

The other fundamental elements of Forex trading includes market analysis and research in order to understand the fluctuating situation of the market, technical analysis involves the understanding of charts, graphs, strategies and signals, economic calendar based on the last month’s information for the traders to get the help for prediction.