Currency Pairs (also known as Forex) basically means buying and selling currencies from around the world. It is one of the largest markets in the world, making more than $4 trillion in trades each day.
Currencies are traded in pairs and these pairs fall under three categories
The Majors are the most popular and most liquid pairs and always have the US dollar as one half of the pair. Examples include the EUR/USD and the USD/JPY.
The Minors are the pairs which do not include the US dollar, but contain the remaining major currencies; the EUR, JPY and GBP. The Minors have also been nicknamed ‘Crosses’. Examples include the EUR/CHF and the EUR/GBP.
The Exotics are not as widely traded as the Majors and Minor. These currency pairs are made up of a major currency pair coupled with the currency of a developing economy. Examples include the USD/HKD and the USD/NOK.
WHY TRADE FOREX
There are many benefits and advantages of trading forex.
Here are some reasons why so many people are choosing this market.
No clearing fees, no exchange fees, no government fees and no brokerage fees on Forex Trading.
A 24-hour market
The Forex market operates on a continuous basis 24/5 except on Saturdays and Sundays.
Under normal market conditions, You can instantaneously buy and sell in the Forex market.
No fixed lot size
In spot Forex, you determine your own lot. This allows traders to participate with accounts as small as $25
Forex Contract Specification
Starting Sunday 22:00 and ending on Friday 22:00 GMT
Trade Margin Calculation
Position Contract Size / Leverage * Currency Pair Live Exchange Rate
Forex Rollover Rates/Swaps
Rollover rate is defined as the interest added or deducted for holding a currency pair position open overnight. These rates are calculated as the difference between the overnight interest rate for the two currencies that a Forex trader is holding whether they are long (buy) or short (sell) positions.