FOREX TRADING GUIDE FOR BEGINNERS

This is a guild to forex trading that will help an individual with no forex experience, to get familiar and understand the terminologies use in forex trading

WHAT IS FOREX MARKET- This is global market that facilitate the exchange of one country currency to another .it is the largest financial market with market capitalization of 5.3 trillion daily. the exchange rate value of a currency in the forex market is determine by the demand and supply of the base currency

MAJOR CURRENCY IN FOREX MARKET                                                                                          These are the currency that are trade or that are exchange more frequently in the forex market, those currency are term major currency due to the volume traded daily in the stock exchange. the major   currency are USD(UNITED STATE DOLLAR),EURO,GBP(BRISTISH POUND),JPY(JAPANES YEN),CHF(SWISS FRANC),CAD(CANADIAN DOLLAR),AUD(AUSTRALIAN DOLLAR) and NZD(NEW ZEALAND DOLLARS)

MAJOR CURRENCY PAIR– The mention currency in the above paragraph are not traded alone, they are traded in pair with us dollars, like USDJPY, NZDUSD, GBPUSD, USDCAD, USDCHF, AUDUSD, the mention currency pair are the most liquid and widely traded in world. According to IMF, the USD contain about 64% of the world forex reserve

 

 

MINOR OR CROSS CURRENCY PAIR-these are currency trading that does not contain USD, they are also known as cross pair. The most actively traded pair are derived from three  non USD pair, which are GBP,EUR, and JPY, This cross currency pair means trading one of the three major currency within the forex market like say EUR/CHF,EUR/NZD,EUR/JPY,GBP/CHF,CAD/JPY etc

EXOTIC CURRENCY PAIR-These are currency pair of one major currency pairs with the currency of an emerging

economy. an emerging economy currency are simply currency of third world economy like Africa and some part of Asia that are still developing .a good example such emerging economy currency are NGN,RAWD,HKD etc  These currencies can only be traded or paired with a major currency like USD/NGN, USD/SGD USD/HKD or GBP/NGN, GBP/HKD, or EUR/NGN etc. These currencies are not heavily traded like the major currencies hence the transaction cost associated in trading is very high

also read how to make profit in forex 

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