This is again a very simple question but is very important to know how to trade in the Forex market. Because without knowledge nobody can trade properly. You may enter the market with the investment but without the information, you can lose the amount which you are investing into the market.
So the trade means that you can buy or sell one currency against another one. Here we are talking about the currency pairs. A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency. You always trade based on the base currency. Simply if the base currency will go down another one will go up. This is not enough for the price or market movement, we have to analyze the market so that you can get some idea about the market’s next move.
All the beginner trades usually trade into forex 7 major pairs which are quoted with USD and which pairs are not quoted with USD called minor pairs. The list of major & minor pairs is given below.
MAJOR PAIRS ARE
USD= CAD, AUD, CHF, GBP, JPY, NZD, EUR
CROSS & MINOR PAIRS
GBP/JPY.
