If you re considering starting a trading career, the best place to start is with the currency pairs known as the euro and dollar. The dollar and euro are two currencies that are very similar to each other, but differ slightly in terms of history and price movement. Using these currencies as a hedge or trading tool could help you achieve your financial goals. Fortunately, there are a number of benefits that come with using the forex market.
Currency spreads refer to the price of buying or selling one currency for another. In the EUR/USD pair, for example, the spread equals 1.3000, meaning you can buy EUR1 for $1.30. A spread of this size means that the euro is falling against the dollar. In other words, the EUR/USD pair can be very volatile, so you should only use it with a broker who offers a small spread.
Generally, currency pairs are traded against each other in pairs, with the base currency the U.S. dollar being the base currency and the quote currency the other currency being the quote currency. The exchange rate is the amount you need to buy one unit of the base currency. These two currencies are linked through a complex process, and it s vital that you know the basics of currency trading. This can be a complicated process, but the rewards can be tremendous if you re willing to put in some effort.
One of the most popular currency pairs in the world is the EUR/USD. This is a fairly new currency that was established through provisions of the Maastricht Treaty in 1992. The euro is controlled by the European Central Bank, or the Eurosystem. Several companies operate in both Europe and the U.S., with some even having offices in both. But no matter what your reasons are for wanting to trade the EUR/USD, it is a great place to start.
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