Trading forex is that you simultaneously buy a certain amount of money and sold a number of other currencies. The currencies are traded through a broker or distributor and in pairs, for example Euro and Dollar (EUR / USD) or the British pound and the Japanese Yen (GBP / JPY).
Remember, when you trade in the forex market, you buy and sell currency pairs.
You can imagine, each currency pair as a tug of war game in which each side is a currency. Fluctuations in exchange rates depend on a stronger currency at that time.
The main currency pairs (Major Currency Pairs)
The currency pair below are considered major pairs (majors). These pairs are the USD and traded the most. We have the liquidity account is high and the pair is trading around the world extensively.
Major currency pairs The currency pair is trading?
Secondary currency pair (Major or Minor Currency Pairs Cross Currency Pairs)
Currency pairs that do not contain the dollar is a currency pair known as hybrids, known as crosses. It is also considered that the currency pair accessories. Most currency pairs are derived from the 3 extra currency is EUR, JPY and GBP.
Euro and Yen Crosses The currency pair is trading?
And Other Pound Crosses The currency pair is trading?
Exotic currency pairs (Exotic Pairs)
Exotic pairs are combined from a major currency and a currency of the new economy such as Brazil, Mexico, or Hungary. The image below is one of the examples of the foreign currency pairs.
Depending on the forex brokerage firm that you can find some exotic pairs mentioned. Keep in mind that this pair trading more difficult and the couple extra pairs, so that the transition costs related to the transaction of foreign couples are often quite large.
The pairs exotic currency pair being traded?
No wonder if the purchase price difference deviation (spread) of pairs exotic than 2 or 3 times as much as EUR / USD or USD / JPY. So if you want to trade the pair, consider this issue.
