08/10/2025
FOREX 2: Understanding currency, pairs and new order options.
FIRST OF ALL, allow me to explain to you BASE CURRENCY.
-When you're opening an account with any broker of your choice you will have options to choose your preferred base currency.
For example:
1. GBP
2. EUR
3. USD √√
4. ZAR
Many people choose to trade in USD. Yes, that's why I ticked it twice. But if I were you I would choose GBP as a base currency.
Why?? Because 1 pound worth more compared to 1 dollar.
And your deposits, withdrawals, profits and loss will all be in pounds.
LUCKY YOU, RIGHT?
NOW. let's talk about 8 MAJOR CURRENCY.
1. USD- US DOLLAR
2. EUR- EURO
3. GBP- GREAT BRITISH POUND
4. JPY- JAPANESE YEN
5. CHF- SWISS FRANC
6. AUD- AUSI DOLLAR
7. NZD- NEW-ZEALAND DOLLAR
8. CAD- CANADIAN DOLLAR
These are the most traded currencies in the forex market.
Many investors and traders love the taste of the money these currencies have.
If you ever wanna make more money.. Make sure a pair you are trading it has one of these currencies or your pair is made of two of these currencies, OK.
PAIRS
A pair is made of two combined currencies.
For e.g.
EURUSD
USDJPY
GBPUSD
USDZAR
These are pairs.
The one on the left worth more than the one on the right.
Meaning in our examples.
EUR worth more than USD,
USD worth more than JPY,
GBP worth more than USD,
USD worth more than ZAR.
√√ if a market/graph is going up/rising>> currency on the left is gaining value. The one on our right is losing.
√√ if a market/graph is falling>> currency on the right is gaining value, and the lefty one is losing.
EASY RIGHT?
🤔NOW, HOW DO YOU BUY/SELL or place a new order?
Remember forex is all about buying and selling.
We buy when a market is rising.
We sell when the market is falling.
There are different types of entering a trade.
1. Market ex*****on: meaning you buying/selling right away.
2. Pending orders ( Buy stop, sell stop, buy limit and sell limit).
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LESSON 3 is coming soon.