As I do a lot of reading these days (^_^) regarding forex trading, I found out one simple explanation about forex trading. I thought to share it here in my blog...
Lets start with 4 major currency pairs:
EUR/USD; GBP/USD; USD/JPY and USD/CHF
In both of the first two currency pairs (EUR/USD and GBP/USD), USD works as money.
The first two currency in the currency pairs is known as the COMMODITY and second one is the MONEY.
So when you buy EUR/USD, it means you pay USD to buy Euro.
On the other hand if you sell EUR/USD, it means you pay Euro to buy USD.
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