Trade pairs, not currencies - When two (2) currencies are being traded against each other, it is called a “Pair” and the Forex Market consists of four (4) main pairs: Euro-USD, USD-GBP, USD-Japan Yen, USD-Swiss Franc.

The first currency is called the base currency and the second currency is called the counter-currency. For each transaction, we buy or sell the base currency. Like any relationship, you have to know both sides. Success or failure in Forex trading depends upon being right about both currencies and how they impact one another.