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What is Forex Trading

What is FX trading?

It's all about trading forex pairs. A currency pair, for example EUR/CHF, reflects the relative rate of one currency compared to another.

The base currency, in this case the euro, is always on the left side of the pair. The counter currency, here it is the CHF, is on the right.

The EUR/CHF reflects the price for buying 1 euro in Swiss francs.

When the EUR/CHF rises in price, it means that the Euro is strengthening against the CHF. If it falls, it will weaken against the CHF.

When we trade forex, we speculate that certain events will cause a currency to weaken or strengthen relative to its pair.

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