*This is to be the first installment following the post where I promised to flesh out the material this blog focuses on, currency trading*
The first, and most important aspect of currency trading is understanding the "currency cross." Which currency pair are we looking at or trading? When identifying a cross, it is displayed as the following:
"currency A" / "Currency B"
So if I were to see
and then the price quote: "115.236" next to it, what I am reading is that 1 Euro buys 115.236 Yen. Another way to conceptualize a cross is backwards, or, to buy 1 Euro requires 115.236 Yen.
After grasping what a pair and its price quote represents, we can move onto our options when trading, and there are only two.
Buying (other terms: "going long," "covering," etc.)
Selling (other term: "shorting")
For the purposes of this blog, I will refer to buying as "buying" and selling as "shorting."
I'm really beat, and I'll be completing this series tomorrow morning along with my market sentiments.
Thanks for reading!