Post No. 24

What is forex & how is it traded?• Forex is the buying of one currency and selling of another concu concurrently. rrently.Currencies are quoted in pairs such as EUR/USD. The major curren currencies arees EUR (Euro), GBP (British Pound), JPY (Japanese Yen) and the CHF (SwissFranc) – and they are traded against the USD.• The first listed currency is known as the base currency, while t the secondhe currency is called the counter or quote currency. The base currecurrency currency is thency "basis" for the Bid price (the cost of selling the base currency currency) or the Ask) price (the cost of buying the currency). For example, if you Ask EUR/USDyou have bought Euros (and simultaneously sold dollars). You wou would do so inld expectation that the Euro will appreciate in value relative to t the US dollar. FXhe is traded in lots, which represent 100,000 units of the base cur currency. If therency. EUR/USD is quoted at 1.2253, that means that one Euro is current currently worthly just over $1.22. If the market moves from 1.2253 up to 1.2254 th that representsat a move of one pip. A pip is the smallest increment a currency pa pair can moveir and in the case of the EUR/USD currency pair a pip is worth $10 in a 100Kaccount and is $1 in a mini account.