How To Read Currency Pairs

Here's a quick and comprehensive guide on how you can read currency pairs as a forex trader!
As usual my objective is to simplify all aspects of trading, so that even someone who has never seen a chart before, can make sense of the topic at hand.

Let's get into it -
Currency pairs are a combination of 2 different currencies and we can trade them based on how they are compared to each other in terms of price (weighted against each other).

How can we use this to make money?
1. Understand the Exchange Rate
Let's assume that the current exchange rate for EURUSD is 1.10, that means of €1 is valued at $1.10.
2. Buy Euros
If you start with $1000 and you believe the exchange rate may increase in the future, it would be a good idea to convert your Dollars into Euros at the current rate.
$1000 / 1.10 (exchange rate) = €909.09
3. Wait for Appreciation
Now, let's assume the exchange rate increases to 1.15. This means that €1 is now worth $1.15.
4. Exchange Back to Dollars
With your 909.09 Euros, you can convert them back into Dollars at the new exchange rate.
€909.09 x 1.15 (new exchange rate) = $1045.45

So, in this example, you've potentially made a profit of $45.45 by anticipating and benefiting from a favorable change in the exchange rate.

Major Currency pairs
EURUSD GBPUSD USDJPY USDCHF AUDUSD NZDUSD USDCAD

Minor Currency Pairs
EURGBP EURAUD GBPJPY AUDJPY NZDJPY EURJPY GBPAUD AUDNZD EURCAD GBPCAD

That's a mouthful to take in so I'll leave you there.
Hope this post helps and as usual...
Happy Hunting Predators
🦁🐯🦈