Latest Articles

Develop Your Forex Strategy: Every Candle Tells A Story
Your forex strategy will be greatly enhanced by a thorough understanding of candlesticks. Used by Japanese traders for centuries, the Western world has only recently (since around 1991) become aware of their value due to the work of Steve Nison. ...

Intro to Forex Fundamental Analysis
The best course of action to take sometimes isn't clear until you've listed and considered your alternatives. The following paragraphs should help clue you in to what the experts think is significant. FOREX traders almost always rely on analysis...

Online FOREX Education - Product Review
This course is first off a practical introduction to the foreign exchange market, offering a sound theoretical base to start from and build upon throughout your trading career. Secondly, in addition to the theory, you receive a description in...

How To Read Forex Currency Pairs

The Forex market is known by its immense volume of transaction per trading day, and it is because of this that its impossible for a single of the markets forces to noticeably control the market direction for any considerable length of time, opening many opportunities for traders of any size.

Among the most important factors that influence currency prices you must consider the economic and political conditions in the home country of the particular currencies you are willing to trade. There are three important factors influencing the price f any currency: Inflation, political stability, and interest rates. All this factors fall into whats known as fundamentals in the trading world. Additionally, governments will always be a factor in the currency markets, they will often try to establish some kind of control over the price of their currency by either intentionally flooding the market, to lower the price; or buying large quantities, to raise the price.

The first thing you should know if you want to read currency quotes correctly is that each particular currency is given a three letter code which is used in forex quotes. The most common currencies are: European euros (EUR), US dollars (USD), United Kingdom pounds (GBP), Australian dollars (AUD), Japanese

yen (JPY), Swiss francs (CHF) and Canadian dollars (CAD). One more thing you must learn when you start trading forex is that the foreign exchange prices are indicated by quotes in a fraction like mode, and this are called currency pairs. The first currency is called the 'base' and the second is called the 'quote' currency. In the following example: USD/EUR = 1.1896

This currency pair is formed by US dollars and European euros. The base currency (USD) is always considered 1 and the quote currency shows how much it costs to buy one unit of the base currency. In this example, 1 US dollar will cost you 1.1896 euros.

By examining the data of any trading software, you will notice that forex quotes are shown in a 'bid' and 'ask' prices format. What Bid means is the price that buyers will pay for the base currency, while at the same time selling the quote currency, and Ask is the price at which the sellers will sell the base currency, while at the same time buying the quote currency.

Adrian Pablo is a Forex freelance writer with articles published in a number of places. Get a free report on Fibonacci Trading and learn more about the world of forex trading , visit:

=> www.1-forex.com


Written By: Adrian Pablo


FX round-up: Dollar makes headway (ShareCast)
LONDON (SHARECAST) - The dollar started the year on strong footing, making headway against most major currencies as traders returned after the New Year holiday.

Asia stocks edge up for 7th day (Reuters via Yahoo! News)
Asian stocks inched higher for a seventh day on Tuesday on hopes for a global economic recovery later in 2009, but the yen's gains against high-yielding currencies suggested scope for optimism was limited.

Asia stocks up on hopes of recovery (Reuters via Yahoo! News)
Asian stocks edged up for a seventh day on Tuesday, boosted by hopes for a global economic recovery later in 2009, though the rising yen and falling high-yielding currencies suggested such optimism was limited.

China FX reserves fall on weak euro - adviser (Reuters via Yahoo! Philippines News)
(Adds quote, background)

FX Correlations (January): How Do Currencies Move In Relation To Each Other? (Daily FX via Yahoo! Finance)
The following is our monthly correlations update for January. As we have stated time and again, correlations between different currency pairs will inevitably shift over time. Therefore, it is of utmost importance to keep abreast of these fluctuating relationships to fully understand your trades and portfolio.