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In order to start with Forex trading, it is important, as already mentioned, to first learn the basics. Otherwise no continuous passive income can be built up. This is also comparable with the traffic rules in car traffic. Here you do not simply drive without a driver's license.

The Forex Basics

Some terms have already been taken up in the introduction. Here they are presented in detail again.

What is a currency pair?

The most important currencies, which then also belong to the currency pair in the currency market:

-the US dollar (USD)

-the Euro (EUR)

-the British pound (GBP)

-the Swiss Franc (CHF)

-the Australian Dollar (AUD)

-the Canadian dollar (CAD)

-the New Zealand dollar (NZD)

-the Japanese YEN (JPY)

A currency pair is a comparison of two exchange rates. The first written value is the base value that exists and how much of the quote currency, i.e. the currency written in the place, you get for it.

If a currency pair EUR/USD with a value of 1.20 is specified here, for 1 Euro (Euro is the base currency) you will get a total of 1.20 US dollars (the value of the quote currency). Basically, the currency pair is always given in the quote currency. In this example, the value of the currency pair EUR/USD is given in USD.

The most frequently traded currency pairs are mainly linked to the US dollar. The clear number 1 is the EUR/USD currency pair. There is a technical term for each currency pair in Forex parlance. For EUR/USD it is the term EURO.

The most important currency pairs include EUR/USD (technical term EURO); GPB/USD (technical term Cable); USD/CHF (technical term Swissy); AUD/USD (technical term Aussie); USD/JPY (technical term Yen), USD/CAD (technical term Loonie) and NZD/USD (Kiwi).

What is a currency cross?

A currency cross is a currency pair consisting of the most important currencies, but not including the US dollar. Although these currency pairs are not used as often in Forex trading as if the US dollar were included as a component, they also play an important role in the foreign exchange or currency market.