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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.

Forex Trading Basics: Currency Pairs Explained

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.

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