Welcome Pals.
lets start from the basics.
WHAT IS FOREX
Forex is from the word foreign exchange, which means the simultaneous buying and selling of currencies like United States Dollar (USD), Great Britain Pound (GBP), European Members (EUR) Switzerland Franc (CHF), Japanese Yen (JPY), Australian Dollar (AUD), Canadian Dollar (CAD), and New Zealand Dollar(NZD). These are the major traded currencies in the world market.
FOREX TRADE CONCEPT
1. Currencies must be paired together in the foreign exchange market for trading transaction to take place i.e. EUR/USD
2. The first paired currency is the BASE (EUR) the second paired currency is the QUOTE (USD)
3. The BASE currency is usually stronger in value than the QUOTE
4. Each currency pair comes with an exchange rate/price quotation i.e. EUR/USD = 1.4500
5. The exchange rate/price quotation I.E. EUR/USD = 1.4500 means it will take 1.45usd to buy 1 EUR (ignore the last two digits
6. Exchange rate/price quotation is usually divided into two prices which are BID price and OFFER price; the BID price is SELLER¡¦S price while the OFFER price is BUYER price
7. The BID price will be clicked if the BASE (EUR) is believed to depreciate in value, The OFFER price will be clicked if the BASE is believed to appreciate in value
NOTE: Ï as the value of the BASE increases, the value of the QUOTE decreases, as the value of the BASE decreases, the value of the QUOTE increases. In a nutshell, it takes the value of one currency to increase for the other to decrease at the same time. Those that believe the BASE will appreciate in value are
BUYERS while those that believe the QUOTE will appreciate in value are SELLERS. Once the BID price is clicked, it means you are selling the BASE and buying the QUOTE at the same time; Once the OFFER price is clicked, it means you are buying the BASE and selling the QUOTE
8. CHANGE: this shows who is winning between the buyers and the sellers, which is indicated in two colours GREEN and RED. The Green colour indicates Buyers are winning with an indicated number of points, while the RED colour indicates sellers are winning with an indicated number of points.
9. HIGH/LOW: the HIGH indicates the maximum the exchange rate or price quotation has attained for the day, while the low indicates the minimum the exchange rate or price quotation has attained for the day.
