I understand that you buy currency in "lots" and depending if they go up or down in value you make in profit or loss.
I just don’t understand why the currencies are paired like "EUR/GBP".
Can someone help me understand the actual process taking place when people trade currency?
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, the market is just too random and unless risk is controlled over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
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In simple word:
EURGBP = you have / use EUR to buy GBP, the exchange rates is 1 EUR = xxx GBP
The pair is made up 2 currencies – your are trading the first one as expressed in the value of the second one. It’s the exchange rate of the first into the 2nd.
For EUR/GBP, you are trading Euros as expressed in value in Pounds. 1 EUR = x GBP
For EUR/USD, you are trading Euros as expressed in value in US dollars. 1 EUR = x USD
Thanks for telling about the process of Forex work.