• Latest
  • All
  • News
  • Business

Forex 101 – Currency Pairs

Oct 24, 2018
A Beginner’s Guide on How to Start Webinars

A Beginner’s Guide on How to Start Webinars

May 20, 2022
What Is a PDF Virus?

What Is a PDF Virus?

May 17, 2022
The Ultimate Guide to TV Antenna Installation

The Ultimate Guide to TV Antenna Installation

May 17, 2022
How to create multiple email filters in ProtonMail free plan

How to create multiple email filters in ProtonMail free plan

May 14, 2022
6 Benefits of Outsourcing Your Business’s Design and Development Projects

6 Benefits of Outsourcing Your Business’s Design and Development Projects

May 13, 2022
How IoT, Autonomous Cars and Smart Cities Will Develop

How IoT, Autonomous Cars and Smart Cities Will Develop

May 10, 2022
Apple Virus Guide: How to Get Rid of a Virus on Your iPhone

How to transfer photos from iPhone to Computer

May 10, 2022
How Does Data Analytics Improve Security Systems?

How Does Data Analytics Improve Security Systems?

May 4, 2022
Discovery Phase For Software Development: How Much Does It Cost?

Discovery Phase For Software Development: How Much Does It Cost?

May 4, 2022
Smart Contract Programming Languages in Blockchain

Smart Contract Programming Languages in Blockchain

May 4, 2022
How Does an Elasticsearch Application Work?

How Does an Elasticsearch Application Work?

May 3, 2022
How To Take Care of Files on Your Computer

The Many Benefits That External IT Support Provides For All Businesses.

May 2, 2022
  • Guest Posts
  • Advertise
  • Contact Us
  • Privacy Policy
Sunday, May 22, 2022
Tech Featured
  • Home
  • Latest Tech
  • Apple
  • How to’s
  • Apps
  • Automobiles
  • Gadgets
  • Gaming
  • Reviews
  • Tech Tips
No Result
View All Result
Tech Featured
No Result
View All Result
Home News

Forex 101 – Currency Pairs

by techfeatured
Oct 24, 2018
in News
0
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Foreign Exchange trading (Forex, hereafter) is a market that’s opened up to private investors since the 1990s, and it currently has over two trillion dollars worth of trading transactions every single day, making it the single largest market in the world.  The key to forex trading is that everything has a relative value; you want to buy a currency low and sell it for more than you paid for it. 

Currencies are listed with an exchange rate; for example, right now, one British Pound is worth $1.9248, meaning that it’s worth about a dollar ninety two.  This is the Dollar/Pound Currency Pair.  The relative value of a currency pair will shift over time; sometimes, it’ll shift fast – within minutes or seconds, usually just after a bank opens or just before a major bank closes; this is why most Forex traders live or die on the London close.

Now, a position for a forex trade would be to buy pounds at $1.9248 and expect to sell them when they hit a certain price, say you expect them to break $2.00 for whatever reason.  (There are lots of reasons to expect this; big bailouts are inflationary on the currency being used, and the US government is doing a lot of bailouts right now.)

The amount that a currency pair’s relative valuation can change is called its swing.  In day trading, swings can be in 10ths and hundredths of a cent, and the money is made by using leverage to buy (and sell) large blocks of currency.  Swings have a period (how rapidly they change), and fast swings (both up and down) are good for doing day trading style strategies.

Currency pairs also have other swing patterns; there are seasonal patterns in currency trading (like the fact that the dollar always rises in the summer time, due to Americans spending time on vacation, or the fact that the Euro rises in August for the same reason – most of Europe takes their vacation at the same time). 

If you’re just getting into forex trading, focus on long term swings and position trading.  These won’t make you as much money, as quickly, but their risk is lower.  More importantly, you don’t need to get into leveraging agreements to make a decent profit at it, and they don’t require that you spend all of your life watching numbers on a screen to push a trade through when the right numbers come up.

If you’re looking at the various online forex courses, be aware that most of them want you to get into a day trading strategy.  This can make you a lot of money quickly – it can also lose you a lot of money quickly.  It also requires constant vigilance;

Regardless of which strategy you use, forex trading can be a reasonable way to earn a living.  It’s still a job, it just happens to be one that’s well suited to certain types of people.  If you’re the sort of person who agonizes over when you’ve lost money on a bad trade, this may not be the right job for you.

Tags: 101CurrencyForexPairs
ShareTweet

For any queries, you can reach us at [email protected]

Latest Posts

  • A Beginner’s Guide on How to Start Webinars
  • What Is a PDF Virus?
  • The Ultimate Guide to TV Antenna Installation
  • How to create multiple email filters in ProtonMail free plan
  • 6 Benefits of Outsourcing Your Business’s Design and Development Projects
Tech Featured

© 2022. All Rights Reserved.

Navigate Site

  • Guest Posts
  • Advertise
  • Contact Us
  • Privacy Policy

Follow Us

No Result
View All Result
  • Home
  • Latest Tech
  • Apple
  • How to’s
  • Apps
  • Automobiles
  • Gadgets
  • Gaming
  • Reviews
  • Tech Tips

© 2022. All Rights Reserved.