Placing a Trade
Placing a trade in the Forex market is simple. The mechanics of a trade are virtually
identical to those found in the markets you are trading now.
A Forex trade is a trade in which one currency is valued against another.
Symbols to Trade
Forex Symbol
EURUSD
USDJPY
GBPUSD
USDCHF
USDCAD
AUDUSD
EURGBP
EURJPY
EURCHF
GBPJPY
Currency Pairs
Euro / U.S. Dollar
U.S. Dollar / Japanese Yen
British Pound / U.S. Dollar
U.S. Dollar / Swiss Franc
U.S. Dollar / Canadian Dollar
Australian Dollar / U.S. Dollar
Euro / British Pound
Euro / Japanese Yen
Euro / Swiss Franc
British Pound / Japanese Yen
Terminology
Euro
Dollar-Yen
Sterling
Dollar-Swiss
Dollar-Canada
Aussie
Euro-Sterling
Euro-Yen
Euro-Swiss
Sterling-Yen
The symbol for each Forex contract is based on the two currencies:
EURUSD = Euro Dollar vs. US Dollar.
Also, each Forex contract is a price for the first currency in the symbol name, quoted in
the second currency in the symbol name. In the case of the Euro vs. US Dollar, where the
exchange rate is approximately $1.30, it would take USD 1.30 to purchase 1.00 Euro.
Each Forex contract covers a fixed number of units of the first symbol in the symbol
name, usually 100,000.
Forex exchange rate prices move in fixed minimum price movements called pips. A pip
is the minimum price move an exchange rate can make.