Forex market is all about making the best out of seemingly negative situations. Any trader whether he belongs to Singapore forex trading market or rest of the world, desires to make maximum money from his investments, which makes the entire process intricate and muddling. In order to make money, you need to have thorough command over the fundamentals of the forex market. If you do not have knowledge of these fundamentals, then peril may hug you sooner than later, so it is essential for you to not only understand them, but also set them firm in your mind.
Following are the fundamentals of forex market:
- Currency pairs: You need to remember that there is involvement of a set of currencies in every transaction performed by you, as forex market is all about selling and buying of different currencies.
- Minor and Major Currencies: In all, there are seven major currencies in the forex market. These include USD, EUR, JPY, JBP, CAD, AUD and JPY. The remaining currencies come under the minor category.The most frequently traded ones are the SGD (Singapore Dollar), ZAR (South African Rand) and NZD (New Zealand Dollar). This indicates the strengths of the currencies such as SGD.
- Base Currency: It is initial currency in the set of currencies. Traders and brokers trade by measuring the value of the base currency against the secondary currency.
- Quote Currency: It is the subsidiary currency in the set of currencies traded by traders in the forex market. Traders determine any profits or losses by measuring this currency.
- Cross Currency: This is the set of currencies, which does not have USD as a currency. Such pairs have to go through complex movements of price, as every trade rests on buying and selling two distinct currencies. For instance, buying and selling between EUR/JPY can be muddling and learning experience.
- Pips: Forex trading market distinguishes a pip as the smallest part of price for any of the foreign currencies.
You need to keep these things in mind, as they may help you at every phase of forex trading. Whether trading in Singapore forex trading market or any part of the world, these fundamentals may remain the same, as they are universal. Forex for beginners can be tough, but these fundamentals can make things easier.
Learn how to trade forex, as such things can really take away your peace and give extreme pressure. Singaporean traders in the markets of Katong, Chinatown and Santosa need to take careful steps while dealing in forex market.