Forex Trading Basics
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Download the FREE eBook "Forex Trading Basics". [To save file and forward to friends: Right click on link and choose "Save File As..."]
One of the primary elements when it comes to trading forex currencies is that it necessitates trading in pairs of currencies like EUR/USD in which Euro trades over the US dollars. This is a characteristic pattern of forex currency pairs.
In the instance of the Euro which is the initial currency it is recognized as the base currency whereas the second currency or the dollar is regarded as the counter or quote currency. What it actually means is in case of these two forex currency pairs, if you want to purchase the currency pair, then you have to buy the Euro currency and sell US dollars at the same time.
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