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Currencies are the most commonly use and trade things in the Forex market. That's why we called this Forex Market. If we look in the world we can see different currencies. For example USD, GBP, EUR, AUD, JPY and so on.
In the forex market we exchange these money against each other. This exchange is frequent and the price of the above money is frequent. But there is no single currency in the financial market. We can see two currency together. It's called a currency pair.
EUR/USD, GBP/USD and so on. If two currencies are not exchanged, we cannot make a transaction there. So two currencies is needed. It is euro vs. USD.
EUR/USD and GBP/USD are the two most commonly traded currency pairs in the forex market. There are two types of currencies in one currency pair and their price is very important to us. why ?
eg : EUR/USD = 1.1047/1.1049 = BID/ASK = SELL/BUY
in the Forex market, you can make profits even if prices go up or down. Because there are two types of currencies. That means Sell or BUY. If the market goes down we can profit from Sell transactions. If the market goes up we can profit from BUY transactions.
If you put a Sell trade, you buy USD. Then the price drop means that the first EUR value decreased and the USD increased.
If you put a BUY trade, you are buying EUR. Then the price increase means that the value of the original EUR increases and the value of the USD decreases.
The EUR of this EUR/USD currency pair is the base currency. USD is Quote currency
Now you know the two main currencies in the financial market and how they work. so we have to practices forex with forex Software. its called MT4