in this video we're going to show you everything you need to know about trading Forex fast Forex affects every aspect of your daily life from buying your morning coffee to refilling your car to going on holiday this is all made possible through the process of Forex in motion there is also a free Forex Trading beginners guide that works in combination with this lesson we'll show you how you can get it later in this video so what is Forex exactly the word Forex is a mashup of Foreign Exchange and is commonly used to refer to the Foreign Exchange Market the largest financial Market in the world picture a massive Marketplace trading across all the corners of the globe but rather than having Goods on sale this Market trades in global currencies the Forex Market or Foreign Exchange Market is one of the most widely traded markets in the world with daily trading volume of over $6 trillion unlike the stock market the Forex Market is open 24 hours a day from 5:00 p. m. Sunday to 5:00 P p.
m Friday eastern time so you might be wondering where exactly is the Forex Market based well it's actually everywhere Forex is a decentralized market with no single Central Authority or exchange that governs it all instead it is made up of a network of banks Brokers dealers and even governments who Trade Currency with each other also make sure to hit the like button as it allows forour team to continue to produce more free content on YouTube let's now go through some of the key Concepts you must know currency abbreviations each currency is represented by a three-letter code called an ISO code here are some of the main currencies traded USD is the US dollar also known as simply the dollar AUD is the Australian dollar also known as the azi nzd is the New Zealand dollar also known as the Kiwi e is the Euro CAD is the Canadian dollar also known as the cad GBP is the British pound also known as simply the pound JPY is the Japanese Yen also known as simply the Yen CHF is the Swiss frank also known as simply the Swiss what is a currency pair in Forex currencies are traded in pairs because when you trade Forex you are buying one currency while selling another at the same time let's look at the pound dollar currency pair for for example the first currency in a pair is the base currency and the second currency is the quote currency let's say you get a quote of pound dollar as 1. 12655 this means for every one pound you get 1. 12655 of US Dollars there is always an invisible one beside the base currency on the left so here's what happens when you actually Trade Currency pairs when you buy a currency pair like the pound dollar or when you go long on the pound dollar You're Expecting the pound pound to appreciate while the dollar depreciates when you sell a currency pair like the pound dollar or when you go short on the pound dollar You're Expecting The Pound to depreciate while the dollar appreciates major currency pairs these are the major currency pairs which all include the US dollar as the US is the world's largest economy starting out we recommend sticking to trading major currency pairs as they are the most liquid meaning you can get in and out of position easily and fast and with tighter bid ask spreads what is a pip in the land of Forex exchange rate changes are measured in Pips a pip stands for a percentage in point or a price interest point this is a standardized measurement for the smallest whole unit price move that an exchange rate can make if the Australian dollar is sitting at 0.
675 1 and its value gained by one pip it would move to 06752 most currencies are written to the fourth decimal place with the fourth decimal place representing one pip however some exceptions Buck this trend such as with the Yen crossed pairs the Japanese yen is often quoted to two decimal places so a one pip gain would be 46.
