Forex Basic

Main Currencies Currencies Pair
US dollar - USD EUR/USD
Euro - EUR GBP/USD
Great Britain - GBP USD/CHF
Swiss Franc - CHF USD/JPY
Japanese Yen - JPY EUR/JPY
Australia - AUD USD/CAD
New Zealand - NZD AUD/USD
Canada - CAD

Base Quote
USD/JPY USD JPY
Long up down
Short down up
If USD/JPY is $119.68, then 1 unit of USD cost $119.68 of JPY

If USD/JPY is $119.68/75
We buy at Ask price $11975
We sell at Bid price $119.68

Standard lot is $100 000, Mini lot is $10 000
Used margin – money used to hold existing positions
Free margin – money available for additional positions

Order types
Market Order – current market price

Pending orders
Buy Stop order – buy at a price higher then current. now $2, buy at $3
Sell Stop order – sell at a price lower then current. now $2, sell at $1

Buy limit order – buy at a price lower then current. now$2, buy at $1
Sell limit order – sell at a price higher then current. now $2, sell at $3

OCO – one cancel the other