Trading Currency Pairs

Introduction to Currency Pair Trading

Currency pair trading involves buying one currency while selling another, allowing traders to profit from fluctuations in exchange rates. It takes place in the decentralized forex market, with transactions occurring directly between participants on electronic platforms.

How It Works

Traders buy or sell a currency pair based on whether they believe the base currency (first currency) will rise or fall in value relative to the quote currency (second currency). For example, if the EUR/USD pair is quoted at 1.25, one euro is worth 1.25 U.S. dollars.

Categories of Currency Pairs

Major Pairs: Involve widely traded currencies, like USD, EUR, and JPY.
Minor Pairs: Include currencies like GBP and AUD.
Exotic Pairs: Combine major currencies with those from emerging economies, such as USD/TRY.

Why Trade Currency Pairs?

Currency trading operates 24/5, offering flexibility and the ability to trade at any time. The forex market is also highly liquid and offers low entry costs, making it an appealing option for traders.

Direct

These pairs feature the US dollar as the quote (or counter) currency but not as the base currency. Examples include GOLDEURUSD, GOLDGBPUSD, and GOLDAUDUSD.

Indirect

Currency pairs that use the US dollar as the base currency rather than the quote currency are called indirect currency pairs. Examples include GOLDUSDCHF, GOLDUSDJPY, and GOLDUSDCAD.

Cross

Currency pairs that do not include the US dollar are known as cross currency pairs. Examples of these include GOLDEURGBP, GOLDEURCHF, GOLDGBPJPY, and GOLDCHFJPY.

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ONLINE TRADING PLATFORM

PERSONALIZED CHARTS

Utilize a comprehensive set of tools to analyze price trends and perform technical analysis. With over 95 technical indicators, multiple chart types, and drawing tools, you can tailor your charts to your needs.

MARKET NEWS AND INSIGHTS

Stay informed with our market calendar and integrated Reuters news stream, keeping you up to date with the latest market developments.

TRADE ANYTIME, ANYWHERE

With our dedicated mobile apps for iPad, iPhone, and Android, you can trade currency pairs on the go, no matter where you are.