Forex basics

One of the things that you will notice about Forex USA is there is schooling that will educate you. Here are some Forex basics. Forex is the largest financial market in the world. Money specifically foreign currency is traded 24 hours a day. There are at least 8 currencies that are traded. They are AUD, USD, JPY, EUR, CAD, GBP,CHF and NZD. You have now transaction costs and no commissions. Here are some terms for you to know. Ask is the sell price. Aussie is the nickname for the Australian Dollar.

Cable is the nickname for the GBP/USD currency pair. Base Currency is the first currency in the pair. Bid is the purchase price. Bid/Ask Spread is the points between the bid and ask price. Broker is the agent who buys and sells currencies. Day trader is one that trades during the day. Euro is the nickname of the European currency. Going long is when you purchase currency. Going short is when you are selling currency. Forex CFD’s are simply an agreement between two parties. The seller pays the buyer the difference between the current value of currency and the value at the time of contract. There is more about this at USA Forex.

These have several advantages over conventional trading such as the CFD price becomes the base price. You have better leverage opportunities and options. There are some disadvantages of this. You can overtrade and allow market influences to force you to selling your pairs at a loss. You can also have ineffective money management which can impact the bottom line. There are many different Forex indices, one of which pertains to the American market. The USDX is the one that pertains to the American dollar and the American Forex Market. Forex USA works with these indices exclusively.

This compares at least 6 different currencies with the American dollar. However this is also 20 different countries. You compare currencies. Now with the Forex commodities for those such as NZD, CAD and AUD, there are specific commodities that make the price of the currency go up. For AUS, it is gold, for CAD it is oil and for NZDE agriculture. These can change the worth of the currency. Forex metals are basically the same thing as the commodities. The precious metals of certain countries can make their currency go up in value as well as down in value depending on news. This is where USA Forex comes in.