Introduction: Understanding Forex Trading Made Easy
Forex trading is one of the most dynamic financial markets in the world. However, for beginners, it often seems complex and overwhelming. That’s why we at Millance have compiled this essential guide to the most frequently asked questions about forex trading.
By the end of this article, you’ll have a better understanding of the forex market, currency pairs, pips, and more — helping you get started with confidence.
What Is Forex Trading?
Forex trading, also known as foreign exchange or currency trading, involves buying one currency while simultaneously selling another. It’s the largest and most liquid financial market globally, operating 24/5.
For example, if you’re trading the USD/AUD pair, you are exchanging U.S. dollars for Australian dollars or vice versa. Most institutions, brokers, and individual traders use forex trading to profit from currency value fluctuations.
At Millance, we offer the Best Forex Trading Platform in India, enabling traders to access top-tier technology, tools, and expert support.
What Are Forex Currency Pairs?
A currency pair represents the exchange rate between two different currencies — the base currency and the quote currency.
For example:
- In EUR/USD, EUR is the base currency.
- USD is the quote currency.
- If the rate is 1.3500, it means 1 EUR = 1.35 USD.
Currency pairs are how all trading takes place in the forex market. Therefore, understanding them is key to successful trading.
How Do Currency Pairs Work?
Each currency pair is made up of:
- Base Currency: The first currency in the pair (what you are buying).
- Quote Currency: The second currency in the pair (what you are paying with).
The value of a pair constantly changes due to economic factors, news, and global market sentiment. Thus, forex traders monitor these fluctuations to make profits.
What Is a Pip in Forex?
A Pip stands for “Percentage in Point.” It is the smallest price move that a currency pair can make, typically at the fourth decimal place.
For example:
If the price of EUR/USD moves from 1.3920 to 1.3921, that 0.0001 move is 1 pip.
However, there are exceptions. For currency pairs involving the Japanese Yen, such as USD/JPY, the pip is usually counted at the second decimal place because 1 USD is roughly equal to 100 Yen.
What Is Forex Commission?
Unlike traditional stock brokers, many forex brokers do not charge a fixed commission. Instead, they earn from the spread — the difference between the bid and ask price.
This is why trading with the Top Forex Brokers in India like Millance is important. We offer transparent pricing with no hidden fees, ensuring that profits belong to the trader, not the platform.
How Many Currency Pairs Are There?
There are several types of currency pairs you should be familiar with:
Major Pairs:
- EUR/USD – Euro / US Dollar
- USD/JPY – US Dollar / Japanese Yen
- GBP/USD – British Pound / US Dollar
- USD/CHF – US Dollar / Swiss Franc
Commodity Pairs:
- AUD/USD – Australian Dollar / US Dollar
- USD/CAD – US Dollar / Canadian Dollar
- NZD/USD – New Zealand Dollar / US Dollar
These pairs are most frequently traded and offer high liquidity and tight spreads.
Why Choose Millance for Forex Trading?
Whether you’re a beginner or experienced trader, Millance provides:
- A secure and user-friendly Forex Trading Platform in India
- Access to major and minor currency pairs
- Educational resources and daily insights
- Low spreads and zero hidden fees
- Free demo account to test your strategies safely
Final Thoughts: Start Smart with Millance
Understanding these basic terms and FAQs is your first step toward becoming a confident and successful forex trader. Forex trading can be highly rewarding, especially when done with the right broker and platform.
👉 Visit www.millance.com today to open your free account and start your forex journey.
📞 +971 50 228 4750
📩 support@millance.com
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