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Forex Trading Basics: Currency Pairs Explained
James Thompson2025-01-0312 min read
A comprehensive introduction to forex trading, covering major currency pairs and market fundamentals.
Introduction to Forex Trading
The foreign exchange (forex) market is the largest and most liquid financial market in the world, with daily trading volumes exceeding $6 trillion.
Understanding Currency Pairs
Forex trading involves buying one currency while selling another. Currency pairs are categorized as:
- Major Pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF
- Minor Pairs: EUR/GBP, EUR/JPY, GBP/JPY
- Exotic Pairs: USD/TRY, EUR/ZAR, GBP/SEK
Market Sessions
The forex market operates 24 hours a day, five days a week, across four major trading sessions:
- Sydney Session
- Tokyo Session
- London Session
- New York Session
Factors Affecting Currency Prices
Currency values are influenced by economic indicators, central bank policies, political events, and market sentiment.
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About the Author
James Thompson
Trading Expert
Experienced trader and market analyst with expertise in technical analysis and risk management.