When opening a new order, you will be faced with several new words and terms. Let’s consider some of the important terms in Forex that you, as an Oman forex trader need to know to open the first order. So, let’s start by opening a new order on MT4. We will use the most favorite pair, namely EUR / USD. In this article, let us learn more about currency pairs. Meanwhile, before we continue, you can visit http://www.arabforex.pro/en/oman/ if you need to find the most trusted broker in Oman.
The first currency in a currency pair is called the base currency, while the second is called the quote currency. In the EUR / USD pair, the base currency is the euro, and we will sell and buy it in dollars.
On the price chart, you can see the change in the price of the base currency against the quote currency. Hence, the price chart of EUR / USD is moving downwards, that is, EUR is getting weaker (read: the price is lower), while USD is getting stronger.
Currency pairs can be classified into major, minor (cross pairs), and exotic currency pairs.
All major currency pairs consist of US dollars and the most popular ones are: EUR / USD, GBP / USD, USD / JPY, USD / CHF, AUD / USD etc. 90% of Oman forex traders trade EUR / USD.
Cross pairs consist of two popular currencies, but without involving the US dollar. Oman traders must know that the most common cross pairs are the euro, yen, and British pound: EUR / GBP, EUR / JPY, GBP / JPY, EUR / AUD, etc.
Exotic currency pairs consist of one major currency and one currency that represents either developing economies (Brazil, Mexico, India, etc.) or small economies (Sweden, Norway, etc.). These pairs are known to have high volatility: USD / NOK, USD / HKD, USD / ZAR, USD / MXN, USD / RUB, EUR / TRY, USD / BRL, USD / TRY etc.