In foreign exchange (Forex or FX) you exchange one currency for another with the intention of making a profit. The “Majors” in Forex are the seven most traded currency pairs. The Majors share certain characteristics that make them more popular for traders. These characteristics are the reason behind why they represent around 80% of the volume traded on the forex market. The reporting in their economies is frequent and resourceful, meaning that there is more information regarding these currencies. However, their popularity also relies on their low volatility and liquidity as well. They are less susceptible to manipulation and have tighter spreads in comparison to other currency pairs.

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What is Forex?

What is Forex?

Foreign exchange, or Forex for short, is the “place” where currencies are traded. Currency trading is the exchange of one type of currency for another. In the forex market, currencies are traded in pairs. When a trader buys a currency, he or she is selling another...

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What is a Pip?

What is a Pip?

A point in price – or pip for short – is a measure of the change in the exchange rate of a currency pair. It is the smallest unit of measurement we use when trading currencies. Most currency pairs are measured to five decimal places. For pairs such as EURUSD, GBPUSD a...

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What is a Bid Price/What is an Ask Price?

What is a Bid Price/What is an Ask Price?

The Bid price is the price a forex trader is willing to sell a currency pair for. Ask price is the price at which a trader will buy a currency pair. Both of these prices are given in real-time and are constantly updating. So for example, the British pound against the...

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What is Forex Spread?

What is Forex Spread?

A bid-ask spread is the amount by which the ask price surpasses the bid price for an asset in the market. Essentially a spread is the difference between the ask price and the bid price. In other words, it is the cost of trading. For instance, if the Euro to US dollar...

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