Forex trading instruments.

The main instrument used to make a profit from trading on the Forex currency exchange is currency pairs.

They are the object of purchase or sale transactions; traders do not go into detail describing what is being bought or sold for what; usually the operation has a simpler form, for example, a purchase transaction on EURUSD with a volume of 1 lot.

Which, in normal recording, means we bought 100,000 euros for American dollars.

In the quotation, for abbreviation and ease of recording, ISO codes accepted in the global banking system are used.

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

It is thanks to the above-described feature of trading instruments on Forex trading is not about the currencies themselves, but about currency pairs.

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

• The first category includes pairs formed by such currencies as the American dollar, euro, Japanese yen, British pound, Swiss franc, Canadian dollar and Australian dollar.
A full description of the most popular ones 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 consists of less popular instruments, and accordingly, the broker’s commission in this case leaves much to be desired.

Its size sometimes reaches tens of points. Typically, Dealing Centers provide the opportunity to use from 20 to 100 currency pairs in trading. Also, some instruments not exactly from the Forex market are available for trading in the trader’s terminal, such as precious metals, stocks, indices, futures