This is why many people want to learn how to trade forex. However, forex trading for beginners is a learning curve, so you will need to take the time to learn the strategies and techniques carefully.
Here is an in-depth look at how and where to trade forex online.
The first currency in the pair is the base currency and is the one you purchase in a forex transaction. The second abbreviation in the list is the quote currency, which you use to purchase the base currency.
The number that follows the pair is the price for one unit of the base currency in the quote currency. For example, AUD/USD 0.66 means you can purchase 1 unit of AUD with 0.66 USD.
Major pairs are usually the best option for most traders because they have a high volume. Major pairs are also tied to the US dollar. Minor pairs involve other major currencies besides the benchmark USD and are an excellent alternative to major pairs. Exotic pairs are less-traded currencies paired with the US dollar. These may lack volatility and unpredictability, which you may find with major pairs.
There are two ways to place a trade. You can use a market order or a limit order.
At the same time, minor and exotic pairs may be less volatile and offer clearer price action indicators.