Currency are quoted in pairs, such as EUR/USD or USD/JPY. The first listed currency converter is known as the base currency, while the second is called the counter or quote currency. Currency trading is the "basis" for the buy or the sell on the currency conversion rate. For example, if you BUY EUR/USD you have bought euros (simultaneously sold dollars). You would do so in expectation that the euro will appreciate (go up) relative to the US dollar.
The simplest definition of currency trading is the practice of exchanging one country's currency for another country's currency. Basically, currency trading involves four main variables: currencies, exchange rate, time, and interest rate. Currency trading is a platform where individuals speculate on the exchange rate between two currencies. Traders buy and sell currencies hoping to realize a profit. In order to succeed in currency trading you will need a source of accurate and timely information. You'll need to familiarize yourself with a whole new language.
When you start currency trading you'll learn what a market trend is and how it will affect your trading. Trends move up, down and sideways. There are also trend classifications within market trends. These classifications are intermediate, short-term and long-term trend. You'll learn how to look at and understand basic trend lines, which is the most valuable trading. You'll learn about channel lines and support levels.
A new addition to many currency trading online business sites is the ability to set up a free demo account. This is a good way to get practice about trading and learn about live quotes, charts and streaming news before you start investing with real money.
You can start playing the
currency trading market with real market conditions
immediately. Trading opportunities in the currency trading
market are now available to individuals through technology
interfaces such as those used by major currency trading
brokerage firms (usually large corporations with big
tummies). If you decide to hire a professional who takes
advantage of this technology, you will be able to view
your accounts' closed trades 24 hours per day through
a secured, online access portal.