### 9 Starting Forex

There are many currencies in the world that you can Trade, but only focus on Trading Major Currencies because is cheap to trade them

8 Major and most traded currencies (in no specific order)

1. U.S. Dollar (USD)
2. Canadian Dollar (CAD)
3. European (EUR)
4. Great British Pound (GBP)
5. Swiss franc (CHF)
6. New Zealand Dollar (NZD)
7. Australian Dollar (AUD) 
8. Japanese Yen (JPY)

Each Currency is named using the Three Character Symbols, Know these Currency Symbols

USD, CAD, EUR, GBP, CHF, NZD, AUD, and JPY

Currency Pairs


Currencies are Traded in Pairs because you bet a value of a Currency against another currency

For example the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY).

When you trade in the forex market, you buy or sell in currency pairs.

The currency pairs listed below are considered the “majors.”
These pairs all contain the U.S. dollar (USD) on one side and are the most frequently traded.

The majors currency Pairs

OPEN YOUR TRADING SOFTWARE and SEE

Your MT4 shows currency pairs like that.

USD is paired with many currencies because dollar is the most traded currency, taking up 84.9% of all transactions.
The euro’s share is second at 39.1%, while that of the yen is third at 19.0%.
U.S. dollar comprises roughly 64% of the world’s official foreign exchange reserves! Because almost every investor, business, and central bank own it, they pay attention to the U.S. dollar.

Reasons why the U.S. dollar plays a central role in the forex market:

The United States economy is the LARGEST economy in the world.
The U.S. dollar is the reserve currency of the world.
The United States has the largest and most liquid financial markets in the world.
The United States has a stable political system.
The U.S. dollar is the medium of exchange for many cross-border transactions. For example, oil is priced in U.S. dollars. Also called “petrodollars.” So if Mexico wants to buy oil from Saudi Arabia, it can only be bought with U.S. dollar. If Mexico doesn’t have any dollars, it has to sell its pesos first and buy U.S. dollars.

Attention

If Currencies are paired with USD, during USD forex news, all the pairs that are paired with the USD will react more like the same, here is example

During USD forex news that happened at 15:30 South African Time, All currencies that paired with USD had a massive move Up because news said USD was gaining value.
NB, All currency pairs that USD is on the Left went UP. All Pairs were USD in on the Right went down because is an Inverse move, for example check the EURUSD pair in the above image

When Trading news you take advantage of these moves