Currency pairs Financial Affairs.

Now your ready to understand currency pairs , a pair of currencies are like to fighters in a boxing match that goes on all the time and never stops. Every minute a new battle is fought.

Currency pairs like the USD/JPY are traded every day millions of times. Every trade is a gamble you are betting that the currency you selected will either go up or down. Each bet you place is called a trade. These trades can be made by any one that has internet connection and a debit card. This ease of entry is one of the benefits of forex but at the same time a disadvantage because you will be competing against banks and other financial institutions that have better computers and more money than you as an individual. Don't be afraid

even though you may not be a bank you can still earn money in the forex market.

There are 180 different currency's pairs so you can familiarize your self with them . I tend to stick to a few key currencies, this is important as a beginner. When you stick to currencies you understand you will have an easier time turning a profit because you understand the currency on a cultural level this includes banking holidays which can have in impact on forex pricing.

Also when you pick your pairs to trade spread cost will be a factor in your decision .

A spread is a fee you pay to play in the forex market its how brokerage firms make money by lending you money. The money they lend you is not free and you pay a few cents per 1000 dollars every 24 hours you use there money. For example the picture below is a USD/JPY trade I bought 1,000 dollars worth of yen at 113.571 this cost me .09 cents and is the first fee you pay when you play. The spread is a floating price and can change at the end of your trade

this could negatively impact your bottom line keep an eye on your trade history this neat tool helps you gauges your spending on spread costs and will increase your profitability.