==== ==== "Forex Megadroid™ Is The Direct Outcome Of 38 Years Of Learning And Experiencing... From Seeing What Works And What Doesn't... It's All About Currency..The Next Level In 2012 Automated Forex Robot Trading: Multi-Market Performance, Capable Of Turning $1 Into $4 In EVERY Market Condition! http://aboutcurrency.net/ ==== ====
It's going to be a little bit more technical, but I'll make it as simple as possible for you. Base Currency vs Counter Currency Every currency quote in Forex has two currencies, one on the left of a stroke, and another on the right of the stroke. Let's look at an example. EUR/USD The Base Currency is always the currency on the left. In the example above, it's EUR. The value of the base currency is always 1. The Counter Currency is always the currency on the right. In the example above, the counter currency is USD. Now let's look at some numbers. EUR/USD = 1.4450 This simply means that 1 Euro Dollar is equivalent to 1.4450 US Dollars. Let's look at another example. USD/JPY = 106.15 This means that 1 USD is equivalent to 106.15 Japanese Yen. Now let's say the exchange rate changes like this: At 8pm, USD/JPY = 106.15 At 10pm, USD/JPY = 106.18 Question: Which country strengthened? Was it Japan, or was it the US? Answer: It was the US. Because now 1 USD now gives you more JPY. We can infer two things. Either the US strengthened or Japan weakened. The 4 Major Currency Pairs There are 4 major currency pairs that take up the bulk of the world's trades.
EUR/USD GBP/USD USD/CHF USD/JPY Out of these 4 currency pairs, can you guess which is the one most traded worldwide? The answer is EUR/USD. Out of the whole Forex market, as much as 30% are trades between the Euro Dollar and US Dollar. The second most traded pair is the USD/JPY, which accounts for 22% of trades. Just these two currency pairs (EUR/USD and USD/JPY) take up half of all Forex trades. We recommend that you start out with one of these two pairs. Other popular currency pairs include the USD/CAD, AUD/USD, NZD/USD, as well as Cross Rates. Cross Rates means that the USD does not appear as either the base or counter currency. They came up with such a term because out of the hundred over currency pairs, the USD is either the base or counter currency 80% of the time. The rest are cross rates. Examples of Cross Rates are EUR/GBP, EUR/CHF, EUR/JPY, GBP/JPY.
Mario Singh is a regular guest on CNBC's "Capital Connection", and he is frequent contributor to top investment websites and magazines like FXStreet, Personal Money, Smart Investor, Forex Journal and Your Trading Edge. He is also the CEO and co-founder of FX1 Academy - now recognised as Asia's Largest Forex Academy, and has coached thousands of students through his Forex Trading Programs in Singapore and Malaysia. Get Mario's Free Forex Course "3 Days to Explosive Profits" when you subscribe to his blog today.
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==== ==== "Forex Megadroid™ Is The Direct Outcome Of 38 Years Of Learning And Experiencing... From Seeing What Works And What Doesn't... It's All About Currency..The Next Level In 2012
Automated Forex Robot Trading: Multi-Market Performance, Capable Of Turning $1 Into $4 In EVERY Market Condition! http://aboutcurrency.net/ ==== ====