So you have found the Forex Market, now what?
USD – US Dollar
GBP – Great British Pound
EUR – Eurozone Euro
JPY – Japanese Yen
CHF – Swiss Franc
CAD – Canadian Dollar
AUD – Australian Dollar
The above currencies aprt from the USD are most commonly paired against the US Dollar when trading the Forex market. A Cross Currency refers to currency pairngs which doesn’t include the USD. Cross currenciessimplify the process of exchanging currency without any need to firstly convert it into USD.
In the Forex market the base currency refers to the first currency quoted in any currency pairs. Take GBP/USD currency pair for an example, the Great Britain Pound is the base currency and the U.S. dollar is the quote currency. The price represents how much of the quote currency is needed for you to get one unit of the base currency.
So that gives you a little more information as you trade the Forex market. Start off by getting to know one Forex pair first, possibly the GBP/USD or EUR/USD and see how you go!