What is Currency Pairs Trading?
Currency pairs measure the value of one currency against another. The first currency in a currency pair is called the base currency, and the second currency is called the quote currency. The displayed price shows how much of the quote currency is required to buy one unit of the base currency.
How to Trade Currency Pairs?When trading with currency pairs, the base currency is always quoted first and represents the currency you are buying.
For example, if you are buying Euro versus US dollar (EUR/USD), you are anticipating a rise in Euro at the expense of US dollar.
Profit and loss are normally expressed as a change in the amount of the secondary currency in a currency pair.
Every currency pair has a BID and an ASK price. This is a rate at which you can sell a currency and a rate at which you can buy a currency. The price maker (usually a broker) gives you a rate at which they are willing to buy or sell a currency pair.
Check out the video example
Limit Prime Securities offers a wide range of currency pairs, including all the major currency pairs. We offer consistently low spreads on a number of popular currency pairs.
How much money do I need to deposit?
Thanks to leverage, you need to deposit only a fraction of the full trade value, called the initial margin.
For example, the leverage of 1:100 allows you to trade the value of USD 100,000 with a deposited amount of only USD 1,000.
List of Currency pairsRead More