Trading currency in the foreign exchange market (forex) is fairly easy today with three types of accounts designed for retail investors the standard lot, mini lots and micro lots.
Before you start jumping in you should familiarize themselves with the market and terminology of the forex market, and if you’ve already been trading stocks online it should be easy to get started. If you need to know more about the Online Forex Trading Course- Forex Trading Strategies then you are at the right place.
Below is a list of terms you should learn.
The first currency quoted in a currency pair on forex. It is also typically considered the domestic currency or accounting currency.
Cross Currency Pair:
A pair of currencies traded in forex that does not include the U.S. dollar. One foreign currency is traded for another without having to first exchange the currencies into American dollars.
The quotation and pricing structure of the currencies traded in the forex market: the value of a currency is determined by its comparison to another currency.
The second currency quoted in a currency pair in forex.This is also known as the “secondary currency” or “counter currency”.
Now that we’ve reviewed basic terminology but when looking at the quote screen for the first time it may seem confusing at first, however, it’s actually very straightforward.