How Forex market works?
Understanding how to get started as a Forex trader can be a very daunting task. Here are the two simple steps to follow;
A. Select which currency pair you want to trade.
First, decide which currency pair you wish to trade. For instance, EUR/USD is a currency pair (EUR is the base currency, while the USD is the quote currency).
B. Choose the type of Forex trade (Spread Betting, CFD, or Forex Trading).
Three methods of trading Forex:
You trade pounds per point movement when trading in Spread Betting
Some CFDs in the unit of the base currency is traded in CFD Trading.
You buy lots, in the unit of the base currency in Forex Trading.
Having completed the two steps above the next thing is to decide when to buy or sell.
C. Make the buy or sell decision.
At this point, figuring out the current price at which your chosen market is trading is very important. One currency versus another is how Forex is quoted (EUR/USD). Currency pair has a 'base' currency and a 'quote' currency. The currency on the left of the pair is the base (e.g., EUR) while the currency on the right is called the quote (e.g., USD).