Forex major minor pairs - ForexbinaryoptionCz

Forex major minor pairs


Quotes are updated continuously throughout each trading day, and are delayed the absolute minimum time required by each exchange. Inc and DDF Plus make no claims concerning the validity of the information provided herein, and will not be held liable for any use thereof. Forex trading is forex major minor pairs the buying of one currency and the simultaneous selling of another. When placing a trade we are speculating on which currency we believe will become stronger or weaker against the other with the goal of making a profit from the exchange rate movement.

The currency to the left is called the base currency. The currency to the right is called the quote the currency. The quote currency tells us how much it is worth against 1 unit of the base currency. So if we say the EURUSD is trading at 1. The base currency is the basis for the buy or the sell trade. If we believe that the Euro will strengthen against the dollar we would buy the EURUSD pair.

If we believe the EURO will weaken against the US Dollar we will sell the pair i. EURO and simultaneously buying US DOLLARS. They are the most frequently traded pairs in the FOREX market. The majors generally have the lowest spread and are the most liquid.

With the introduction of currency crosses we no longer have to do this tedious calculation as all brokers now offer the direct exchange rates. These currency pairs are also known as minors. Exotic currency pairs are made up of a major currency paired with the currency of an emerging or a strong but smaller economy from a global perspective such as Hong Kong or Singapore and European countries outside of the Euro Zone. These pairs are not traded as often as the majors or minors, so often the cost of trading these pairs can be higher than the majors or minors due to the lack of liquidity in these markets.

As we have already said, when a currency is quoted it is paired with another currency. So the value of one is reflected through the value of another. The base currency is to the left of the pair and the quote currency is to the right. In this case the Pound Sterling is the base currency and the Japanese Yen is the quote currency. However when we are trading financial instruments such as currencies we are offered two slightly different prices. The bid price is the best available price at which we can sell to the market. The ask price is the best available price at which we can buy from the market.