HOW DOES THIS FINANCIAL MARKET WORKS? No, in this market you don’t own shares, you don’t have a “ portfolio of assets ”. The Forex consists of pair of currency’s and you as a trader you have to speculate with their value and direction. The currencys are presented by combined pairs: EURUSD for Euro-Dollar pair GBPJPY for Sterling-Yen pair and 24 other pairs of major and minor currencies combined excluding exotic pairs like USDMXN (Dollar/ Mexican Peso) etc ... HOW TO REALLY UNDERTSAND THE DIFFERENT TYPES OF CURRENCY PAIRS There are two groups of pairs: major pairs and minor pairs that make up around 24 pairs. We will trade most of the time in major pairs because they are the most liquid pairs MAJOR PAIRS EURUSD, AUDUSD, GBPUSD, USDJPY, USDCHF, USDCAD,NZDUSD CROSSED PAIRS Example = AUDJPY = (AUDUSD value X USDJPY value). This is very important beause many people do not teach this. In fact crossed pairs are not independent pairs such as majors pairs . Crossed pairs are the result of a multiplication of major pairs. For example right now AUDJPY = 74.6731 because = audusd (0.71332) x USDJPY (104.684) this mean that you need to be aware that :what happen in audusd or usdjpy will strongly 14
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