How Forex Trading Works. This is called a price quote. The ask price is used when purchasing a currency, while the bid price is used when selling.
FX trading always implies a currency pair, meaning that a trader buys one currency while selling another one at the same time. All currency trades are done in pairs. Because of the worldwide reach of trade, commerce, and finance, forex markets.
Forex trading always involves selling one currency in order to buy another, which is why it is quoted in pairs – the price of a forex pair is how much one unit of the base currency is worth in the quote currency.
The margin level dictates the required capital to hold a leveraged trade.
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In this market, you may buy or sell currencies using a forex trading platform. But if GBP/USD goes down, you'll pay ME the difference. Simply put, foreign exchange (Forex) trading is the buying and selling of currency pairs.