Fap Turbo 2.0 Forum

Fap Turbo 2.0 Forum: The Mechanics of Currency Trading

Understanding currency pairs
Going long and short
Calculating profit and loss
Reading a price quote

The currency market has its own set of market trading conventions
and related lingo, just like any financial market. If
you’re new to currency trading, the mechanics and terminology
may take some getting used to. But at the end of the day,
most currency trade conventions are pretty straightforward.

Buying and Selling Simultaneously

The biggest mental hurdle facing newcomers to currencies,
especially traders familiar with other markets, is getting their
head around the idea that each currency trade consists of a
simultaneous purchase and sale. In the stock market, for
instance, if you buy 100 shares of Google, you own 100 shares
and hope to see the price go up. When you want to exit that
position, you simply sell what you bought earlier. Easy, right?

But in currencies, the purchase of one currency involves the
simultaneous sale of another currency. This is the exchange in
foreign exchange. To put it another way, if you’re looking for
the dollar to go higher, the question is “Higher against what?”

The answer is another currency. In relative terms, if the dollar
goes up against another currency, that other currency also
has gone down against the dollar. To think of it in stockmarket
terms, when you buy a stock, you’re selling cash, and
when you sell a stock, you’re buying cash.

Get the BEST Forex Trading Robot Software - FAP Turbo 2.0, by CLICKING On the Link Below:

>>> CLICK HERE to Visit: FAP Turbo 2.0 Software Website - Now! <<<

Currencies come in pairs

To make matters easier, forex markets refer to trading currencies
by pairs, with names that combine the two different currencies
being traded, or “exchanged,” against each other.
Additionally, forex markets have given most currency pairs
nicknames or abbreviations, which reference the pair and not
necessarily the individual currencies involved.

Major currency pairs

The major currency pairs all involve the U.S. dollar on one
side of the deal. The designations of the major currencies are
expressed using International Standardization Organization
(ISO) codes for each currency. Table 2-1 lists the most frequently
traded currency pairs, what they’re called in conventional
terms, and what nicknames the market has given them.

Table 2-1 The Major U.S. Dollar Currency Pairs
ISO Currency Countries Long Name Nickname
Pair
EUR/USD Eurozone*/U.S. Euro-dollar N/A
USD/JPY U.S./Japan Dollar-yen N/A
GBP/USD United Kingdom/U.S. Sterling-dollar Sterling
or Cable
USD/CHF U.S./Switzerland Dollar-Swiss Swissy
USD/CAD U.S./Canada Dollar-Canada Loonie
AUD/USD Australia/U.S. Australian-dollar Aussie
or Oz
NZD/USD New Zealand/U.S. New Zealand-dollar Kiwi

* The Eurozone is made up of all the countries in the European Union that have
adopted the euro as their currency.

Get the BEST Forex Trading Robot Software - FAP Turbo 2.0, by CLICKING On the Link Below:

>>> CLICK HERE to Visit: FAP Turbo 2.0 Software Website - Now! <<<


-------------------------------