Forex trading means exchanging money with each other. When a trader trading in the forex market he/she is buying one currency and selling the other currency. In forex trading, we have to trade currencies with pairs. There are 3 different scales available for currency pairs are Major, Minor, and Exotic currency pairs.
Major Currency Pair
There are some big currencies available in the world like USD, EUR, GBP, etc. In forex trading there are some currency pairs are available that are most used in trading. We called them major currency pairs like EUR/USD, GBP/USD, EUR/GBP, USD/JPY, etc.
Minor Currency Pair
Minor currency pairs are also a big part of forex trading but these pairs are using less than the major currency pairs. These pairs are not trading like major currencies due to wider spreads and less liquid than the major pairs.
Exotic Currency Pair
Typically it’s include a currency from an emerging market country. That's why they are called Exotic currency pairs, these currencies are liquid and showed wider spreads and fewer market makers.
If you want to trade in forex you have to get trading software, otherwise, it's not possible to trade in the live forex trading market. There is a lot of forex trading software are available. The trading software could be developed by your broker house, but there is some universal trading software available like MT4, MT5, cTrader, etc.
Pip in forex trading
The pip is one of the most important things while we start learning forex trading. You can call it is a scale for measuring the trading profit or loss. It's a small unit for the measurement of exchange value between two currencies. Normally, this is the last decimal place of a price quote.
Leverage in forex trading
Simply you can call it borrowing money from the broker. In normal life, if we borrow money from someone we have to gives the same amount of return. But, in forex trading, the broker will allow you to control a big amount of money by using the leverage where you won't have big capital.
Spreads in forex trading
We know that brokers are giving trading access to us with various facilities. There are two ways of earn money as a forex broker. Spread is one of them, most of the brokers are offering alluring spreads in trading. Spreads could be wider or narrower that is completely dependent on your broker.