Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
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For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
​
For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
​
For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
​
For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Forex and Futures Trading
Start Trading Currencies
Currency trading is easy to learn and with the appropriate techniques, mindset, and methodology, you can establish a second stream of income from trading currencies. Staring small and start with a real account is the proper way to learn to trade.
EURUSD is the world's most traded currency pair. The high volume and the huge number of transactions ensure liquidity and tight spreads. If you are starting new into forex trading, then start with EURUSD. Once you master the fundamentals and technicals, then add additional major currency pairs into your trading. You will notice as you move to less liquid currencies, the spread cost will increase. Not many brokers support exotic currencies. As a forex trader, you should stay away from exotic pairs and focus on the major currency pairs. Less liquid pairs tend to be volatile. Any small change in the demand of the currency pair will induce large spikes and irrational movements.
Move to other Major Currency Pairs
Focus on the seven major currency pairs. The majority of the trade and volume will be on EURUSD, next will be USDJPY. The other major currency pairs will be GBPUSD, AUDUSD, NZDUSD, USDCAD, and USDCHF. Following is the quote for the seven major currency pairs:
Pick a Timeframe to Trade
Forex Market is open 24 hours, 5 days a week, closing for the weekend. You can trade Forex from Sunday afternoon when the market opens for trading in Sydney to the NewYork close on Friday afternoon. The market is open throughout the day. The market closes for the weekend at the Newyork close on Friday afternoon and opens on Sunday afternoon US time when Sydney opens. The weekend gives you ample time to review the market trends and analyze trades from the past week.
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My trading window is from 8:00 AM EST to 11:00 AM EST. This is when the LONDON session overlaps with the NEWYORK session. Since two major markets are open at this time, the spread costs will be the lowest and the currency pairs will be the most liquid. The liquidity and a large number of transactions eliminate erratic movements. During the LONDON session, the currency pairs would have established trends. The overlapping session gives the opportunity to place trades in the direction of the trend. Normally, the European traders will be looking to exit at the end of the LONDON session. The trends will usually flatten towards the LONDON close.
You need to establish a routine for trading. Select a time frame that gives you the advantage to study the market and understand the trends. Stick to your trading window and trading routine and properly use the time to look for opportunities to place trades.
