Yet, it is important to know the foundation before actually start trading with our unique platform. The foundation, we are talking about here, include the different terms which are different from other trading environments such as cryptocurrencies. These terminologies are important as they provide a clear understanding of what this type of trading is. Here are few terms:
Besides, the terms, it is also important to know that Forex trading greatly depends on the fluctuations in the price of specific assets. Currency pairs are the most traded asset traded under the Forex market. However, at BinaryOnline, we made it possible to trade more than 200 assets the forex way. The pairs consist of the base currency and quote currency.
How to read a currency pair, let’s take the EUR/USD pair for instance.
Here, EUR = Base currency ; USD = Quote currency
As such, if the EUR/USD is at 1.1400. This means that you need to have US $1.1400 to buy one euro.
In the forex market, we have three categories of Forex pairs, including Major pairs, Minor pairs and Exotic pairs. Major pairs are the most liquid and widely traded currency pairs in the world, and mainly consist of the US dollar-quoted with another currency. Exotic currency pairs are made up with one major or most traded currency which is paired with the currency of an emerging economy. The table below depicts some example of currency pairs from each of the three categories.
|Major Pairs||Minor Pairs||Exotic Pairs|
While trading any currency pair, a trader can make profits either by opting for BUY or SELL. For instance, you can BUY a currency pair, with the aim of making profits if you sell it later for a higher price. As such, you make profits when you sell a currency pair when the price falls.
Furthermore, along with currencies, the FX/CFD allows traders to trade on many more underlying assets which include commodities, indices, stocks and even cryptocurrencies which is the new craze and it is currently changing the way we are buying and consuming. We went the extra mile to provide other supportive features to trade in the most accurate way.
Like any other assets available on our platform, forex is greatly affected by several global events which result in price movements or fluctuations. These factors include:
As such, there are two main approaches that can help traders to provide much information and hence increase the accuracy. These are:
Start trading the Forex way today.