Basics of forex trading for beginners – It has become known to all that electronic commerce is a global market that is accessed through the World Wide Web, which connects modern devices such as computers and smartphones equipped with electronic platforms and software to international companies that provide financial brokerage services.
Basics of forex trading for beginners
When trading currency pairs, one currency is effectively bought and another currency sold in return.
Let’s take a simple example to show how this is done: EUR/USD is the most widely traded currency pair. The symbol EUR stands for the euro currency and the symbol USD stands for the US dollar currency.
In the above currency pair, the euro is referred to as the base currency and the US dollar is referred to as the quote currency. Proportion is seen as a single unit, even if it refers to two single currencies.
Basics of forex trading for beginners In other words, you are trading the EUR/USD currency pair – not the EUR or USD.
Minor currency pairs
Minor currency pairs are those pairs that are less traded than the major forex pairs.
They are less liquid than the major currency pairs and often have wider spreads.
In general, minor currency pairs are any currency pairs other than those six pairs mentioned above.
Here at AvaTrade, we have a wide range of minor currency pairs for you to trade in.
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Non-traded currency pairs
Basics of forex trading for beginners Untraded currency pairs typically include currencies from emerging market countries.
The reason for naming these currencies has nothing to do with the location of the country, but naming them is related to the additional challenges involved in trading this pair of currencies.
Over-the-counter currency pairs are generally illiquid and have wider spreads and fewer market makers.
Some examples of untraded currency pairs: South African Rand (ZAR), Hong Kong Dollar (HKD) and Mexican Peso (MXN).
Now that you have some information about currency trading, open an account with AvaTrade to start trading major currency pairs, minor currencies and exotics today.
Forex market working hours
The world of Basics of forex trading for beginners operates 24 hours a day, five days a week
Sunday at nine o’clock in the evening GMT and closes Friday evening at nine o’clock GMT.
During these days, the trader can execute his deals of buying and selling around the clock and from anywhere in the world quickly without any effort or fatigue.
With one click of a button, he can execute the orders he wants, but he must know the right time to trade and the direction of the market.
Method of currency trading and profit calculation
The investor must first open a real account and feed it with the capital that suits him, and then install one
Provided by AvaTrade, which are many platforms and suitable for everyone, and they can be customized and modified according to the trader’s taste and method of work.
After that, the execution of deals begins immediately on all currency pairs that we offer and are present in the foreign exchange market.
Basics of forex trading for beginnersA process is carried out by entering the trading platform and selecting the currency pair that he deems appropriate and buying or selling it based on the recommendations or technical and fundamental analyzes of this pair, which gives an indication of the price movement, whether in an upward or downward direction, so he sells it in the event of a decline or Buy it on the upside and this is called “margin trading”.
As the number of points raised by this pair is calculated in the event of its purchase and its profit is added to your invested balance, and vice versa.