What is currency trading?
The process of buying and selling foreign currencies is called trading, and there is another term used for this field which is forex, and the currency trading market is one of the largest economic markets in circulation of cash, and it is also constantly increasing, as many trading platforms allow currency trading around the clock and seven days a week It is worth noting that currency trading is not only related to the concept of online trading, as the process of buying currencies from exchange stores is one of the forms of currency trading, and to learn more about the concept of currency trading, we will discuss during this article to talk about the most important information about it.
What is the purpose of currency trading?
Currency trading is one of the forms of investment to make a profit through the operation of simple capital. The process of selling a currency against another when its value rises leads to profits, and in return buying a currency against another currency during its depreciation is also a form of profit. For more clarification, an example can be given. The following: Suppose that the dollar fell in price against the euro, and here the dollar is bought in euros, and when the dollar returns to rise again, the dollar is sold against the euro, as 10 euros can buy 9.7 dollars and when the dollar returns to rise, 9.7 dollars can buy 12 euros, for example For example, here is the profit. [2]
What are the currency pairs in trading?
In the world of currency or forex trading, two currencies are linked to each other in the form of trading performance, so that the first currency is the base currency, and the second currency in the pair is the quoted currency, that is, when a trader makes a purchase for a specific currency pair, he buys the base currency and in return he By selling the quoted currency, therefore, during this process, attention must be paid to the value difference between the currency pair to determine whether to buy or sell the pair in order to make a profit, as profit can be achieved in both cases, either through selling or through buying, based on the value difference between Currency pair, and it is worth noting that selling a currency pair means that the trader is selling the base currency in exchange for having bought the quoted currency.[3]
What are the most popular currencies that are traded?
The following is a list of the most popular currencies in the forex market:
US dollar and its symbol USD
Euro and its symbol EUR
Japanese Yen and its symbol JPY
Sterling genetic code GBP
Australian dollar and its symbol AUD
Canadian dollar and its symbol CAD
Swiss franc and its symbol is CHF
Chinese Renminbi or Yuan, whose symbol is CNH
Hong Kong dollar and its symbol is HKD
The New Zealand dollar and its symbol is NZD
What are the best currency pairs to trade?
Currency pairs in trading are divided into primary pairs and secondary pairs, as the primary pairs are those that are widely traded around the world, and the US dollar is usually a party to these pairs, while the secondary pairs are less traded, and it is not necessary for the dollar to be part of them. The following are the best currency pairs to trade either as a primary or a minor :
major currency pairs
EUR USD The euro against the US dollar
USD JPY The American dollar against the Japanese yen
GBP USD British pound against the dollar
USD CHF The American dollar against the Swiss franc
USD CAD The American dollar against the Canadian dollar
AUD USD Australian dollar against the US dollar
NZD USD New Zealand Dollar vs US Dollar
minor currency pairs
AUD CAD Australian dollar against the Canadian dollar
GBP CHF British Pound Sterling vs. Swiss Franc
EUR AUD The euro against the Australian dollar
AUD NZD Australian Dollar vs New Zealand Dollar
EUR NZD Euro vs New Zealand Dollar
EUR GBP The euro against the pound sterling
