Basic foreign exchange market
TRADING
It consists of the purchase and sale of short-term assets and operates on international financial markets through physical and virtual platforms
INTERNATIONAL FINANCIAL MARKET
It consists of the purchase and sale of short-term assets and operates on international financial markets through physical and virtual platforms.
It consists of the purchase and sale of short-term assets and operates on international financial markets through physical and virtual platforms
ernational Markets
Foreign Exchange Market
It is the set of physical and virtual platforms where currencies of different denominations are traded.
Stock markets, contract markets, futures markets (contracts), equity markets, commodity markets, derivatives markets, commodity markets, among others.
Currency Pair
A currency pair is a financial asset made up of two currencies that is traded on the foreign exchange market or market forums.
Currencies of some of the Main Countries of the World.
How is a Cross or Currency Pair
A pair consists of two currencies. One currency, the first, which is called the base currency. And, another currency, the second, which is known as the quoted currency.
The way to read it is sequential. That is, first things first and second things second. The eur / usd pair is read as the euro-dollar pair. Despite the script that comes out in the middle, everything is read together. The base currency is read first and then the quote currency
Interpretation of a Currency Pair
Now that we know how to read a currency cross, let's see how it is interpreted. That is, if we see that the eur / usd is trading at 1.10 or that the usd / jpy is trading at 130, what does that mean? Well, the figure at which it is trading tells us how much of the quoted currency is exchanged for each unit of the base currency. For example:
The eur / usd is trading at 1.10, which means that 1.10 dollars (usd) are exchanged for one euro (eur). Seen from another perspective, we could say that for every euro (eur) they give us $ 1.10.
Let's look at another example with the usd / jpy pair. If this pair is trading at 130, it means 130 yen (jpy) are exchanged for one dollar (usd). Or, that for every dollar they would give us 130 yen (jpy).
Finally, to find out how much they would give us of one currency for a certain amount of another, you can access a currency converter through the following link: https://economipedia.com/
Trading: is to operate in the international financial markets
International Financial Markets: futures (contract), stocks, commodities, currencies, among others.
Currency: it is the main currency of each country.
Currency Pair: it is the union of two currencies that are united to establish a price. It is the union. Example: euro / dollar (euro against dollar).
Ethnic principles of trading is to buy and sell currency pair.
Author: NotiMan.