Important data<\/a> are published. These include, for example, GDP, inflation rates, unemployment rates and other important economic figures.<\/p>\n\n\n\nThis has the advantage that the timing of the change can be predictable. Economic changes are closely monitored by forex traders. The high liquidity can also lead to low spreads<\/strong> lead. <\/p>\n\n\n\nTrading currency pairs - what types are there?<\/h2>\n\n\n\n
There are basically four categories of forex pairs that you should be aware of: Major Currencies, Commodity Currencies and Cross Currencies or Cross Currency Pairs.<\/p>\n\n\n\n
\n- Main currencies<\/strong>This category contains the currencies that are traded most frequently. For these currencies, the US dollar is always one of the two currencies. There is no official number of major currencies, which is why the corresponding lists may vary in length. <\/li>\n\n\n\n
- Commodity currencies<\/strong>These are currency pairs whose value is closely linked to the value of a specific commodity. These can be coal, oil or ores. An example of these commodity currencies is the USD\/CAD currency pair.<\/li>\n\n\n\n
- Cross currency pairs<\/strong>This category includes currency pairs that are made up of two main currencies and do not include the US dollar. Classic examples are EUR\/GBP or EUR\/JPY. <\/li>\n\n\n\n
- Exotics or Minors<\/strong>Such currency pairs contain at least one currency that is not classified as a major currency. These currencies are unsuitable for beginners in forex trading, as they are often not very liquid and the spreads can be high.<\/li>\n<\/ul>\n\n\n\n
Major currency pairs<\/h2>\n\n\n\n
As already mentioned, the number of major currencies differs depending on the source. Some particularly well-known currency pairs are listed here as examples:<\/p>\n\n\n\n
\n- USD\/JPY (US dollar and Japanese yen)<\/li>\n\n\n\n
- EUR\/USD (euro and US dollar)<\/li>\n\n\n\n
- USD\/CHF (US dollar and Swiss franc)<\/li>\n\n\n\n
- GBP\/USD (British pound and US dollar)<\/li>\n<\/ul>\n\n\n\n
The most frequently traded currency pair is EUR\/USD<\/strong>. This is because the European single market and America are the two largest economic areas<\/strong> represent. This results in high daily transaction volumes for both currencies, which creates high liquidity and low spreads.<\/p>\n\n\n\nThe value of the currency pair depends on numerous different factors. These include, for example Interest rates<\/strong>which are set by the Federal Reserve (US central bank) and the European Central Bank. <\/p>\n\n\n\n\n- In principle, currencies with higher interest rates are in greater demand<\/li>\n\n\n\n
- If the European Central Bank raises interest rates more than the US Federal Reserve, it can be assumed that the euro will appreciate more against the US dollar<\/li>\n<\/ul>\n\n\n\n
Currency parities<\/h2>\n\n\n\n
The term currency parity is used when there is a difference in the trading between two currencies. fixed conversion rate<\/strong> of one currency into the other currency. The exchange ratio of the two is thus fixed.<\/p>\n\n\n\nA currency parity can only come about through an agreement between two countries that agree on a conversion rate. Today, currency parities are not usual<\/strong>. Under normal circumstances Flexible exchange rates<\/strong>based on Supply and demand<\/strong>. <\/p>\n\n\n\nCurrency parities can be useful if they Reduce transaction costs<\/strong> and facilitate trade in international goods and capital. This can Import and export facilitated<\/strong> as planning security can be guaranteed and the currency risk is eliminated.<\/p>\n\n\n\nConclusion: Trading currency pairs on the forex market<\/h2>\n\n\n\n
Currencies are traded on the forex market in pairs. There is a base currency and a quote currency. Foreign exchange trading can volatile <\/strong>be, especially with important economic key figures<\/strong> such as the unemployment rate or the inflation rate. <\/p>\n\n\n\nCurrencies are divided into Major currencies, commodity currencies, cross-currencies and ecotics or minors<\/strong>. The most important group is the category of major currencies, which are traded most frequently and always include the US dollar as the currency in the currency pairs.<\/p>\n\n\n\nThe most important example is the currency pair EUR\/USD<\/strong>which is traded the most. This results in high transaction volumes, a high liquidity and low spreads<\/strong>. The development of currencies, for example, also depends on changes in the Interest <\/strong>from. <\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-56042","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/56042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=56042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}