As an established Forex trader, I can tell you that there is a lot of information out there that is better off not being read. In fact, I hope none of you are ever bogged down by information overload when it comes to Forex. Forex is complicated enough, but some sources just don’t make it any easier on you to pick up.
I like to keep things simple, especially when teaching the basics of the foreign exchange market. You may think that is an obvious tactic, but it simple is not as clear to some Forex “experts.”
This is why when I’m coaching my young Forex trainees, I make sure to tell them only what they need to know in the beginning. To me, I can’t start telling someone about currency pairs, then jump straight into advanced swing trading. I would do that if I were in the business of melting your mind, but forgive me that I am not.
So, one of the first things I start my newbie’s off with is the understanding of all of the major Forex currency pairs. I do not expect you to memorize these right off the bat, but they are a good jumping off point that I think you should pay a lot of attention to.
EUR/USD – One of the more well known pairs, this is the currency pair for the Eurozone and the United States of America. The Eurozone consists of all of the European countries that have adopted the euro as their main currency (a function of being part of the European Union). Also commonly referred to as the Euro-dollar.
USD/JPY – Another high volume pair, this is the ISO currency pair for the United States and Japan. Market traders have adapted to calling this the dollar-yen.
GBP/USD – Following the trend of having the American dollar on one side of the pair, the United Kingdom and United States pair is sometimes referred to as the sterling-dollar. Traders have also been known to refer to it as simply the “sterling” or “cable,” for short.
USD/CHF – This pair boasts one of the more amusing nicknames of them all, commonly referenced as the “Swissy.” The currency pair represents the United States and Switzerland currencies, and its long name is the dollar-swiss.
Those are just 4 of the most commonly traded Foreign Exchange Market currency pairs. In reality, there are 7 total “major” currency pairs, with the other three being the USD/CAD, the AUD/USD, and the NZD/USD. With this new understanding you have on the most traded pairs, you’ve taken a huge step towards truly being ready to trade.
Also, make sure you look into the best forex trading courses, as well as expert Forex tips and information, like what you’ll find at GCI trading. There, you will find a number of helpful courses, articles, resources and programs that I assure you will help anyone run a profitable Forex investment portfolio.