Own FX

What is Currency Pair? A  Currency Pair  is a price quote of the exchange rate for two different currencies traded in the foreign exchange market. For example : US Dollar and Canadian Dollar (USD/CAD) or New Zealand Dollar and Australian Dollar (NZD/AUD).   Forex Trading is a simultaneous buying of one currency and selling another. When you trade in Forex Market, you buy or sell in currency pairs. Each currency in the pair is listed as a three-letter code.  The first two letters identify the name of the Country and the third letter identifies the name of that country's currency (usually the first letter of the currency's name).   For Example : " USD"  stands for US Dollar and " CAD"  stands for Canadian Dollar. Base Currency and Quote Currency In the USD/CAD pair, you are buying the US Dollar and selling the Canadian Dollar. The first Currency (USD) listed in the pair is called Base Currency and the second (CAD) is called Quote Currency. The Quote Curren

What traded in Forex Market? The simple answer is Money . Because you are not buying anything physical, Forex trading is confusing to beginners so we'll use a simple (but imperfect) analogy to help explain. Think of buying a currency as buying a share in a particular Country , kinda buying a share in a Company . The price of currency is  usually a direct reflection of the market's opinion on the current and future health of its respective Economy .  In Forex Trading, when you buy, say, the US Dollar, you are basically buying a "Share" in the US Economy . Think in future US Economy goes well and the price of "Share" you bought got more value. Now, Once you sell the "Shares"  back to the market, hopefully you'll end up with a Profit. In general, the exchange rate of a currency vs other currency is a reflection of the condition of the country's economy, compared to the other country's economy.   As we learnt in the previous lesson, Forex