Which currencies are traded in the foreign exchange market?

[CortneyWilliams]

Hi there,

I think im lost now. And im willing to learn more and your reply guys might help me in fx. Hope to hear from you soon.

[Fxpipper]

All currencies are traded in the forex market. And the USD happens to be the "king" in more ways than one..
And you may want to review some of the online info resources on Forex, it should provide you with a better idea on what's being traded and the "why"..
Hope that helps.

[CortneyWilliams]

I appreciate your reply and i will take note of that. Thanks for sharing this.

[Alchemist]

Originally Posted by Fxpipper

All currencies are traded in the forex market. And the USD happens to be the "king" in more ways than one..
And you may want to review some of the online info resources on Forex, it should provide you with a better idea on what's being traded and the "why"..
Hope that helps.

As FXpipper said, all currencies are traded, and the USD is indeed "king". Currencies are traded in pairs, of which there are quite a few. However, newbies should stick to the "majors". They all include the US Dollar, and they are the most liquid and most actively traded.

The Majors:
EUR/USD
USD/JPY
GBP/USD
USD/CHF

[Alchemist]

Start off by following just one pair, and add others as you get more comfortable. Don't try to do too much too soon. When you have more experience you can consider adding the Minors to your watch list, and eventually even Exotics.

However, don't think you have to follow every available pair. Plenty of successful traders stick to the Majors, or even just one or two pairs. It all comes down to personal preference.

[Fxpipper]

Exotics, you can opt for after you have gained the requisite experience. Do note, you may need to rethink your strategy a bit when trying to trade exotics..

[Alchemist]

Originally Posted by Fxpipper

Exotics, you can opt for after you have gained the requisite experience. Do note, you may need to rethink your strategy a bit when trying to trade exotics..

Absolutely. Exotics tend to be highly volatile, and as such are unsuitable for anyone who is not an experienced trader. In addition to higher risk they cost more to trade because the spreads are larger.

[Fxpipper]

Oh yeah, learned that the hard way as a new trader - blew my account on exotics in under 1 day. BTW, nice signature..and one that's very relevant.

[cjthelegend]

Originally Posted by Alchemist

Start off by following just one pair, and add others as you get more comfortable. Don't try to do too much too soon. When you have more experience you can consider adding the Minors to your watch list, and eventually even Exotics.

However, don't think you have to follow every available pair. Plenty of successful traders stick to the Majors, or even just one or two pairs. It all comes down to personal preference.

Great advice. The more you try to monitor over multiple pairs, the larger the workload you give yourself. Unless you are trading completely on technical analysis and trends this can become very confusing and take you away from your best game. it can take time to get to know a pair and its behaviour. Patience is key...small moves

[Alchemist]

Originally Posted by cjthelegend

Great advice. The more you try to monitor over multiple pairs, the larger the workload you give yourself. Unless you are trading completely on technical analysis and trends this can become very confusing and take you away from your best game. it can take time to get to know a pair and its behaviour. Patience is key...small moves

Exactly. Too many traders bite off more than they can chew, and as a result find it hard to stay focused. I think the reason for this is because they want to squeeze as much profit out of the market as they can. Like you said, patience is key, and it's all about a lot of small moves over a long period of time. It's a marathon not a sprint.