In Forex Trading. Traders tend to select a specific currency to be traded. Choose a currency trader who traded based on:
- Spread or the difference between the selling price or purchase price is relatively small
- Traders considered easier to analyze the movement of currencies of certain countries than others
The currency most widely traded can be divided into two types: major and minor. Major currency is the currency that fall most heavily traded, popular and greatly affect the forex market. Major currencies are USD, EUR, GBP, CHF, JPY, AUD and CAD. While the minor currencies are currencies other than the currency.
currency Currencies in Forex Trading
Currencies are traded in pairs (pair). All currency pairs with USD is also called the major pairs (pairs uatama). Major most widely traded pairs are: EUR / USD, GBP / USD, USD / JPY, and USD / CHF.
Why the currency must be in pairs? This happens because in every foreign exchange transaction, there must be an exchange between currencies or collectively, the sale and purchase transactions. If you swap rupiah to the dollar, then you are said to be buying dollars and selling dollars. Whereas if you exchange your dollars with the dollars, then say you are selling dollars and buying dollars.
The first currency in the pair is called the base currency (major currencies) while the second currency in the pair is also called the cross currency (the currency of the opponent). This means that there is standardization in the world of forex currency pairs. Example: EUR / USD unusual written upside USD / EUR. If you want to buy EUR / USD, is unusual if you say want to sell USD / EUR. Namu must say you buy EUR / USD.
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Posted in Forex | Tags: Australian dollar, Currency, Currency pair, Foreign exchange market, Japanese yen, Swiss franc, Trade, U.S. Dollar (USD)