HOW DOES FOREX WORK?

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Symbol Bid Ask Spread
EURUSD 1.17245 1.17264 1.9
GBPUSD 1.37313 1.37411 9.8
USDCAD 1.27695 1.27731 3.6
USDJPY 109.969 109.998 2.9
USDCHF 0.93216 0.93238 2.2
AUDUSD 0.72633 0.72686 5.3
NZDUSD 0.70338 0.70458 12
EURGBP 0.85358 0.85416 5.8
EURCHF 1.09298 1.09335 3.7
EURJPY 128.946 128.981 3.5
AUDJPY 79.880 79.939 5.9
GBPJPY 150.983 151.079 9.6
USDSGD 1.34881 1.34948 6.7
XAUUSD 1752.74 1753.20 46
XAGUSD 22.366 22.403 3.7

The above live prices are provided solely for informational purposes, not for trading purposes, and may be delayed.

This is how forex work.

  • Forex trading is the simultaneous buying of one currency and selling of another
  • Two currencies make up what is known as a “currency pair”. For example the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY).
  • Currencies are always traded in pairs – each currency is represented by three letters
  • The first two letters represent the country and the third letter identifies the currency
  • Forex pairs are read in the opposite direction of mathematical proportions or ratios

For example:
GBP/USD = 1.23450

The currency to the left of the slash (“/”) is called the base currency (in this example, the British Pound) and the currency on the right is called the quote currency (in this example, the U.S Dollar)

This notation means that 1 unit of the base currency (that is, 1 GBP) is equal to 1.23450 U.S Dollars

You have to pay 1.23450 U.S Dollars to buy 1 GBP

If selling, the foreign currency exchange rate specifies how much units of the quote currency you get for selling one unit of the base currency

In the above example, you will receive 1.23450 U.S Dollars when you sell 1 GBP.

The list below are the most liquid and widely traded currency pairs in the world and are called major pairs.

CURRENCY PAIR COUNTRIES FX GEEK SPEAK
EUR/USD Eurozone / United States “euro dollar”
USD/JPY United States / Japan “dollar yen”
GBP/USD United Kingdom / United States “pound dollar”
USD/CHF United States/ Switzerland “dollar swissy”
USD/CAD United States / Canada “dollar loonie”
AUD/USD Australia / United States “aussie dollar”
NZD/USD New Zealand / United States “kiwi dollar”

   

When to Buy?

A trader would open a buy position if they believe that the value of that specific base currency would increase.

When to Sell?

A trader would open a sell position if they believe that the value of that specific base currency would decrease.
  

Trading sessions according to GMT (Greenwich Mean Time):

Region City Open(GMT) Closed(GMT)
Europe London 8:00 am 5:00 pm
America New York 1:00 pm 10:00 pm
Asia Tokyo Midnight 9:00 am
Pacific Sydney 10:00 pm 7:00 am

  

Trading sessions according to EST (Eastern Standard Time):

Region City Open(EST) Closed(EST)
Europe London 3:00 am 12 noon
America New York 8:00 am 5:00 pm
Asia Tokyo 7:00 pm 4:00 am
Pacific Sydney 5:00 pm 2:00 am

 

Trading hours may vary with daylight savings time.