Forex trading always involves selling one currency in order to buy another. For this reason, they are quoted in pairs that show which currency is being bought and which is being sold. Each currency in the pair is listed in the form of its three letter code, which tends to be formed of two letters that stand for the region, and one standing for the currency itself.
GBP/USD, for instance, is a currency pair that involves the Great British pound and the US dollar. In this pair, you are buying pound sterling by selling US dollars.
The process of actual trading and placing a trade should also have a few concepts and some key trading concepts. Choose the right type of orders for your needs, and take steps to protect yourself in case of market turns against you.
Ask any successful trader for their top tips, and you can be sure one of them will be to stick to a clear trading strategy. You can use to guide your trading decisions by creating a trading pattern and focusing on risk management and execution of a dedicated plan.
Psychology can have a surprisingly powerful influence over your success as a trader. Emotional responses can even undo all the good work you’ve put into studying the markets and planning your strategy – so it’s important to know how to stop this happening. Avoid some of the errors that traders frequently make. Knowing a few simple tricks and techniques should stop you falling into these common traps.
Fundamental analysis can help you in your search. In this course we'll explain how you can apply its methods to drill down through layers of information and uncover the markets with potential value that others may not have spotted.