I know, I know...It is probably too basic for you but for the starters "forex" is derived from the word foreign exchange. you basically "exchange" one currency with another. The first currency indicated in a pair is always a stronger one or the currency with higher value. For example in EUR/USD the euro is valued higher than the US dollar (one euro will fetch 1.3040 dollars, at the time I am writing this post). Similarly for USD/CAD, US dollar is valued higher than Canadian dollar.
Most of retail or working from home traders deal with spot forex, which means trading the lots or contracts of the specific currency at the current market price. Example; if you have meta-trader (MT4) account or any other platform, the relative price of the currency indicated in that platform at that very second of the hour of the day will be the spot price and if you make a transaction at that price then you are a spot forex trader. I hope this makes it clear. If not then feel free to comment. In my next post I will discuss what are the advantages and disadvantages of being a spot forex trader.
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