Type of Currency Pairs in international forex market

In this post, I will tell you that what is currency pair and what we call the currencies in pair. There are two kind of currencies that traders trade in market, one is base currency and other is counter currency, for example, if you are buying any currency like Euro, then in forex market, the Euro will be base currency and the Dollar will be counter currency. That pair is also written as Eur/Usd. In forex market, the most famous base currencies are Euro and USD, most of the traders prefer USD as base currency. 

There are some pairs that are called major pair, some are minor pair, some are commodity pairs, some are crosses that include USD crosses, Jpy crosses, European Crosses, you can see the picture below to know about the currency pairs. 

Actually it is a dealing of financial institutions, and a trader is only a retailer that is end consumer. Hundred of currencies are available in market to buy and sell, but it will be dependent upon trading volume, if the trading volume is high, then it will come on top, if there are only a few traders trading the currency then the currency pair will be listed in the bottom of the list and some times it vanish from the list. For example, if we see USD/CHF, then it is the most traded currency pair, that's why it is in the first five pairs, but if we see USD/CZK, then it is not as much traded pair, that's why it is in the last of the list of forex market.

Actually whatever currency you are buying is trading of currency, that is called forex. Let suppose, if you are living in united states and heading to Canada for vacation then the currency of Canada is different from United States. So, you need to change your USD to CAD, you will see a local exchanger to change your united states dollar into canadian dollar, you can see the exchange rate on internet, that will also be available in forex market live chart. The same thing you do in forex market in online trading.

The above chart itself telling the figures and major currency pairs in market. The major currency pairs are most traded pairs and they have good chances to give you a good earning on daily basis.

What a trader do in forex market?

For some beginners in forex market, this is the big question that what a trader do in forex market, if you are heading to join forex market and start your career as forex trader then it is the most basic thing that you need to understand what a forex trader do in forex market. But if you are familiar with stock market then you will be familiar with forex market too. But if you are not familiar with stock market then you need to understand what's inside forex market.

Forex Market Chart

Actually, in forex market, a trader do three things that are most common. One thing is buying, second thing is selling and third thing is exchange of currencies at current or determined market rates. The big market traders or you can say "the market runner" are the world's largest banks. Central bank of country do not intervene into this market, this market is controlled by large international banks, they buy in huge volume and then we see market collapse and when they buy in same volume then we see market hike. 

What a trader do in forex market. A sensible and sharp trader always watch the market and its logarithm, He / She see market charts, the history of market, the expected movement of market so that he put an order whether buy or sell, and when market goes in favor of the trader then the trader earn money, the profit depends upon the volume of trade the trader opens. If you want to be a forex trader then you will have to see several aspects and a lot of work. 

What is Forex?

Well, there are hundred of thousand websites related to forex trading and forex information, this one is also for forex trading and its material, so what is new in this blog? why you shall keep reading and subscribe this blog? 

The answer is, I am a very old forex trader and I know so many things and some secrets of forex trading, that's why I think that I can give you some good information related to forex trading and forex market. In this post, I am going to tell you about the initial information about forex trading.

Basically, the word forex stands for "Foreign Exchange", but we know it as forex, so that's why it has become popular on internet. In ancient time, this business was done by manual dealing, in which some people come USA and they used their own currency, (it is a story that I heard somewhere).

Forex trading rules

They did not have american dollar and they were european, so they need to spend their vacations in america, that's why they decided to change the money to other currency and that was the beginning of this lucrative business. After all that dealing, the people involved in this business set the price with dollar against the counter currency, and then this business started between some businessman, and after the revolution of technology and access to internet, this limited business rose up and now it is more than three trillion US Dollars a day business in the world, if we call it the world's biggest business market, then it will be true.

This is just a basic information that I knew about forex. Nowadays a lot of people working and trading in forex market day and night. There are some sessions that make this business very much lucrative and attractive and that's why the traders in this market are rising day by day.

I hope you will like this post, I will wait for your comment, please comment below, if it helps you.