Food Exchange Chart

The foreign exchange market, also known as Forex or FX, has become very popular with financial traders. One advantage of trading this market is the size and volume traded each day. Forex trading is the simultaneous buying of one currency and the selling of another. Currency trading is carried out through a broker or dealer and are traded in pairs, for example: the Euro and the US Dollar (EUR/USD) or the British Pound and the Japanese Yen (GBP/JPY).

The exchange rate is the price of one currency in terms of another. For example, if the current exchange rate for the Euro against the Japanese Yen (EUR/JPY) is 1.2500, this would imply that 1 Euro is equal to, or may be exchanged for 1.25 Japanese Yen. The first currency in a pair is referred to as the reference or base currency and the second is known as the settlement or counter currency. The price for a forex pair is expressed in terms of the counter currency.

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