Major Currencies In Fx
Fx trading simply refers to the buying and selling of different currencies of the world. Fx market is emerging as the biggest & the most liquid market of the world. One can easily trade in this market and earn a good amount of market from their forex investment. Varieties of currencies are traded in this market. In simple words, to trade in this market one should get familiar with the currencies in fx market. One should know which are most frequently traded currencies in fx online market.
In fx market, currencies are always traded in pairs – currency pairs, one currency is bought and other is sold. In other words, the value of one currency is determined by its comparison to the value of another. The first currency in a currency pair is termed as based currency while the other currency is termed as quote or counter currency. Together, they make up what is known as the ‘exchange rate’. There are many currencies in online fx. However, the most frequently traded currencies in fx market includes US Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD) and Swiss Franc (CHF). These currencies are considered as the major currencies in fx trading.
As we have already mentioned that trading in fx is done in currency pairs. The most commonly traded currency pairs includes US Dollar and the Japanese Yen (USD/JPY), Euro and US Dollar (EUR/USD), US Dollar and Swiss franc (USD/CHF), British Pound and US Dollar (GBP/USD). The base currency is always equal to 1 monetary unit of exchange, for instance, 1 Dollar, 1 Pound, 1 Euro. When a currency is quoted against US Dollar, it is called as direct rate. However, any currency not against the US Dollar is known as cross rate. To trade more efficiently in the fx market one require having precise knowledge on currencies in fx trading.
If you a newbie then it is always wise to start trading using your own currency. You can also trade in other currencies in fx market. The key to successful trading lies in selecting one or two pairs to currencies that you like to trade in as a beginner. After you have gained confidence you add more pairs in your trading portfolio. But for a new trader or investor it is always wise to have to have limited pair just to ensure simplicity. However, currency prices always fluctuate. Different factors affect the exchange change so you need to keep track on the changing rates of the currencies in fx market. Moreover, you should always keep tracks on world news and forex market.
- Introduction To Fx Trading
- Fx Trading Lingo
- Fx Vs Traditional Stocks/Mutual Funds
- Currencies In Fx
- Different Accounts In Fx
- Features Of Good Fx Software
- Major Participants In Fx Market
- Fundamental Vs Technical Analysis
- Reading Fx Quotes
- Risks In Fx Trading
- Losses In Fx Trading
- Advantages Of Fx Trading
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