What is forex trading? Forex for dummies – Trading made simple
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This video is going to try and make forex trading as simple as possible. In simplest terms forex trading is the buying and selling of currencies. It is commonly traded in currency pairs.
What is a currency pair?
It’s the exchange rate between two currencies. It shows the price at which one currency is exchanged into another. So, using the example of the EUR/USD or 6E as it’s called; if the price is 1.500 then this means that 1 euro is exchanged for 1.50 US Dollars.
Most common currency pairs
EUR/USD – 6E
In the next video we’ll go over trading the forex and the tools we need to do so. The bulk of all my examples and live trade examples is going to be the 6E market. For those of you that don’t know this market is the EUR/USD pair. It is the one that I find the simplest and easiest to break down. The hours are also pretty much in line with the ES which is the primary instrument that I trade.
I hope this video was a clear enough explanation of what forex trading is all about.