The popularity of the forex market is increasing day by day due to the liquidity of the market. This is also the largest market for online trading. In forex trading, traders predict the value of the currency pairs. When it is about trading currency pairs, FinoTrend is the best place to start your journey. This is an outstanding brokerage company to provide you with all types of support. However, at FinoTrend, you have to trade currency pairs or indices on a CFD basis.
Therefore, if you understand the basics of the market movement and have sufficient knowledge about the financial markets, you can easily become successful in CFD trading. Above all, to ensure your success in online trading, FinoTrend provides you with important market insights and necessary guidance.
CFD Trading on Currency Pairs with FinoTrend:
A currency pair is the combination of two currencies where the value of one currency determined with respect to the value of another currency. Therefore, if you can understand the fundamentals of currency pairs. Especially major forex pairs, you will have a good idea about how to trade Forex online. However, there is a consistency in quoted printings across all currencies.
Due to the liquidity of the forex market, currency pairs trading is very much appealing to all types of forex traders. The most traded currency pair is the EUR/USD as it counts for 30% of overall currency trading in the global forex market.
The Fundamentals of Trading Currency Pairs:
The value of the currency pair indicates the relative value of the first currency with respect to the second currency. For instance, if we consider the currency pair where the value of the US dollar determined by the value of the Japanese Yen and if the rate of exchange is 115.00 that means the value of one dollar is 115.00 yen.
The most interesting thing about trading currency pairs is that the value of currency changes with time. Therefore, the relative value of one currency against another also varies significantly. Here, the trader’s job is to speculate the value of the currency pairs. As the value of one currency against another is expressed by the currency pair. Therefore, the currency pair actually reflects the number of one currency with respect to another currency.
The left side currency in the currency pair is known as base currency whereas. The currency that takes place on the right side is known as the quote currency. Due to the change in the value of the currency pairs, leverage is an essential element to determine the success of the traders in the forex market.
For instance, if you predict that the price of the euro will decrease. You need to sell EUR/USD with an expectation that the exchange rate will decrease. If your prediction is right, the worth of one euro will become less in comparison to the US dollars. The right prediction of the market movement will help you to understand whether you should buy a currency pair or sell the currency pair. FinoTrend provides an efficient support team to help you predict the forex market. Therefore, if you want to engage in forex trading, you must consider FinoTrend.