The most basic of concepts are here explained so you can use them when you decide to start trading in online Forex. These concepts are required to start grasping the online Forex market and its uniqueness over other similar markets.
The Online Forex is a Spot Market
A spot market is any market that handles the current price of finances. If the transactions done in the market deliver longer over several days or even months- it is not a spot market. The online Forex market settles instantly and this is why it is considered a spot market.
Major Online Foreign Currencies
These are the more substantial currencies that are most traded in the online Forex. They include:
- USD (US dollar)
- EUR (European Euro)
- JPY (Japanese Yen)
- GBP (UK Pound)
- CHF (Swiss Franc)
- CAD (Canadian Dollar)
- AUD (Australian Dollar)
Online Forex Currency Pairs
The online Forex has many currencies, but every trade consists of two currencies being traded, one being bought and one being sold. If, for example, you have $200 to invest in online Forex, you can invest in the EUR/ JPY, meaning buying Euros and selling Yens. The two currencies bought and sold are called currency pair in an online Forex trade.
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