News That Matters

Tag: Currency Trading

Introduction to Currency Trading
Finance

Introduction to Currency Trading

Trading currency pairings essentially involves purchasing a currency and selling another one. For example, the USD/CAD pair. The base currency in this pair is the first one which is the USD and CAD is known as the quote currency. Despite referring to two distinct currencies, it is considered as one because you are trading 2 currencies and not just the USD. Basic Terminology for Currency Trading Major Pairs There are six main currency pairings that you will deal with on a daily basis while trading currency pairs. The USD/CHF, GBP/USD, USD/CAD, AUD/USD, USD/JPY, and EUR/USD are considered the 6 major pairs. These are the currency pairs that are traded the most often and have the highest action or liquidity in the market. There is less volatility in these pairs because there a...