Forex trading instruments.

The main instrument used to profit from trading on the Forex currency exchange are currency pairs.

These are the objects of buy and sell transactions. Traders don't go into detail when describing what is being bought or sold for what. Typically, the transaction is simpler, such as a buy transaction of 1 lot of EURUSD.

This, in simple notation, translates to buying 100,000 euros for US dollars.

For abbreviation and ease of notation, ISO codes adopted by the global banking system are used in the quote.

The first in the currency quote is the base currency, in relation to which the buy-sell operation is carried out, the second is the quoted currency, you can learn more about currency pairs in the Currency Pairs section http://time-forex.com/pary

It is due to the above-described feature that trading instruments on Forex are not the currencies themselves, but currency pairs.

They can be conditionally divided into two categories - the most popular and less popular.

• The first category includes pairs formed by such currencies as the US dollar, euro, Japanese yen, British pound, Swiss franc, Canadian dollar and Australian dollar.
A full description of the most popular of them can be found on the page " Popular currency pairs ".

For trading, it is advisable to use instruments from this category, since they have the greatest liquidity and, accordingly, the smallest spread, literally from 0.1 points.

• The second category is formed by less popular instruments, accordingly, the broker's commission in this case leaves much to be desired. Its size sometimes reaches tens of points.

Typically, dealing centers offer the ability to trade between 20 and 100 currency pairs. Some non-Forex instruments, such as precious metals, stocks, indices, and futures, are also available for trading in the trader's terminal.