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Each currency is paired against another, we make money by predicting whether
that currency will gain or lose value against the one it’s paired with.

The main currencies I trade are:

The first currency in the pair is the base currency. The second currency in the
pair is labeled quote currency or counter currency. Such a quotation depicts how
many units of the counter currency are needed to buy one unit of the base
currency.
For example the quotation EUR/USD 1.2500 means that one euro is exchanged
for 1.25 US dollar. If the quote moves from EUR/USD 1.2500 to EUR/USD
1.2510, the euro is getting stronger and the dollar weaker. On the other hand if
the EUR/USD quote moves from 1.2500 to 1.2490 the euro is getting weaker
while the dollar is getting stronger.
The decimal place of the currency is called a pip, if we take the example from
above and buy the EUR/USD at 1.500 then sell at 1.5010 we made a profit of 10
pips.

Each pip has a certain value in profit or loss depending on the size of your
position in that trade. If we traded 1 standard lot which is $100,000 of currency
then the above trade would have given us $10 per pip or $100 for the trade.
Please keep in mind that each pair moves on average hundreds of pips every day
so there is plenty of opportunities to take money out of the market.
The currency pairs on the forex market are quoted in Bid and Ask quotations.
Bid
The bid is the quoted price at which you can sell the base currency, in the
example below it would be the Euro and buy the quote currency i.e. the US
Dollar.
Ask
The Ask is the rate at which you can buy the base currency, in our case the
Euro, and sell the quote currency i.e. the US Dollar.

Here's an example of how you would see a currency pair being quoted on your
trading platform.