==== ====
Automated Forex Robot doubles real money accounts in months!
http://tinyurl.com/6m2kh3z
==== ====
Title:
Forex Currency Pairs
Word Count:
609
Summary:
Forex Currency pairs in Forex trading have been standardized by the IMF. The pairs most
commonly traded are:
EUR/USD, the Euro and the U.S. dollar
USD/CHF, the U.S. dollar and the Swiss franc (sometimes called the Swissie)
GBP/USD, the pound sterling of Great Britain and the U.S. dollar (sometimes called the cable)
USD/JPY, the U.S. dollar and the Japanese yen
USD/CAD, the U.S. dollar and the Canadian dollar
AUD/USD, the Australian dollar and the U.S. ...
Keywords:
forex,forex software,forex trading software,forex tips,forex education,pips,forex trading systems,
Article Body:
Forex Currency pairs in Forex trading have been standardized by the IMF. The pairs most
commonly traded are:
EUR/USD, the Euro and the U.S. dollar
USD/CHF, the U.S. dollar and the Swiss franc (sometimes called the Swissie)
GBP/USD, the pound sterling of Great Britain and the U.S. dollar (sometimes called the cable)
USD/JPY, the U.S. dollar and the Japanese yen
USD/CAD, the U.S. dollar and the Canadian dollar
AUD/USD, the Australian dollar and the U.S. dollar
These pairs account for 80% of all trades in the Forex market. They all involve the U.S. dollar,
because its still the biggest economy in the world and one of the most inviting to trade. But this is
also a holdover from the Bretton Woods Accord of 1944, which pegged all currencies to the U.S.
dollar as a benchmark. Although the Accord was abandoned in the early 1970s, some of its effects
are still evident in the market.
The first currency in the pair is known as the base currency, and its the important one. Its value is
always one in the exchange rate, and it controls the direction of the trade and the chart. The
second currency is called the cross.
For example, in the GBP/USD, the British pound is the base currency and the U.S. dollar is the
cross. If the price on this pair is 1.7609, that means that one pound is worth 1.7609 U.S. dollars. If
the chart goes up, that means the pound is strengthening against the dollar; if it goes down, the
dollar is strengthening against the pound.
Because a purchase automatically includes two currencies, one being traded against the other, its
just as possible to make a profit in a bear market as a bull market. For the same reason, theres no
prohibition against selling short in Forex trading as there is in the stock market; its built into the
system.
Prices are measured in pips, which is an acronym for Price Interest Point, and its the smallest digit
in the price. This is an important point, because not all pips are created equally; they reflect the
base currency of the pair. If the U.S. dollar is the base currency, then one pip equals one dollar in
a mini account or ten dollars in a standard account. If you place a trade with one of these
currencies and earn fifty pips, that would be a profit of $50 in a mini account or $500 in a standard
one.
But if the base currency is not the U.S. dollar, then the value of one pip is equal to one unit of the
base currency. In the GBP/USD, because the pound sterling is the base currency, one pip is equal
to one pound; in the AUD/USD, one pip equals one Australian dollar. Therefore, when you take
profits in these currencies, youre taking them in the base currency, which then must be exchanged
into the U.S. dollar at the current exchange rate.
If the exchange rate is one or more, then this works in favor of U.S. traders; but if the value is
below one, its not such a good thing. For example, a gain of fifty pips in the GBP/USD equals not
U.S. $50, but 50. If the exchange rate was still 1.7609, then the profit after conversion would be
around U.S. $88.
But a gain of fifty pips in the AUD/USD equals AU $50, and the exchange rate is more likely to be
around 0.7467. So the profit would be closer to U.S. $37.
==== ====
Automated Forex Robot doubles real money accounts in months!
http://tinyurl.com/6m2kh3z
==== ====