Buy Currency

When trading in the forex market investors learn how to buy currency and sell currency in order to make a profit. Currencies are only bought and sold in pairs and the value of a currency is determined as a comparison to another currency. The first currency of a currency pair is referred to as the base currency and the second currency is referred to as the quote currency. The currency pair price equals the ratio of one currency valued against the other so the currency pair shows how much of the quote currency is needed to purchase one unit of the base currency. The buying and selling of foreign currency is so popular because it can be traded 24 hours a day, among other reasons. You can read more about the advantages and advantages to trading forex online in previous newsletters.