Category: 1.What is Forex?

The bulk of forex trading takes place on what’s called the “interbank market“. Unlike other financial markets like the New York Stock Exchange (NYSE) or London Stock Exchange (LSE), the forex market has neither a physical location nor a central exchange. The forex market is considered an over-the-counter (OTC) market due to the fact that the entire market…

Whew! That was a lot of information on currencies but you just raised your FX IQ points! 🧠 Let’s summarize what you’ve learned in a series of questions: What is a currency pair in forex?A currency pair is a pairing of currencies where the value of one is relative to the other. For example, GBP/USD is…

BRIICS is the acronym coined for the association of six major emerging national economies: Brazil, Russia, India, Indonesia, China, and South Africa. Originally the first four were grouped as “BRIC” (or “the BRICs”). BRICs was a term created by Goldman Sachs to name today’s new high-growth emerging economies. BRIICS is the term created by the OECD, when…

Scandinavia is a subregion in Northern Europe, with strong historical, cultural, and linguistic ties. The term “Scandinavia” in local usage covers the three kingdoms of Denmark, Norway, and Sweden. Together, their currencies are known as the “Scandies“. Back in the day, Denmark and Sweden established the Scandinavian Monetary Union to merge their currencies to a gold standard. Norway…

The G10 currencies are ten of the most heavily traded currencies in the world, which are also ten of the world’s most liquid currencies. Traders regularly buy and sell them in an open market with minimal impact on their own international exchange rates. COUNTRY CURRENCY NAME CURRENCY CODE United States dollar USD European Union euro…

No, exotic pairs are not exotic belly dancers who happen to be twins. An exotic currency is a currency from countries with developing or emerging markets. Exotic currency pairs are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico, Chile, Turkey, or Hungary. Basically, an exotic currency pair includes one major…

Currency pairs that include any two of the major currencies except the U.S. dollar are known as cross-currency pairs or simply as the “crosses.” Major crosses are also known as “minors.” While not as frequently traded as the majors, the crosses are still pretty liquid and still provide plenty of trading opportunities. Don’t confuse minor currency pairs with the seven major currency pairs,…

Forex trading is the simultaneous buying of one currency and selling of another. Currencies are traded through a “forex broker” or “CFD provider” and are traded in pairs. Currencies are quoted in relation to another currency. For example, the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY).When you trade in the forex market, you…

While there are potentially lots of currencies you can trade, as a new forex trader, you will probably start trading with the “major currencies“. They’re called “major currencies” because they’re the most heavily traded currencies and represent some of the world’s largest economies. Forex traders differ on what they consider as “major currencies”. The uptight…