Forex trading is the simultaneous buying of one currency and selling another.

Currencies are traded through a broker or dealer, and are traded in pairs. For example the euro and the U.

Exchange rates fluctuate based on which currency is stronger at the moment. The most actively traded crosses are derived from the three major non-USD currencies: EUR, JPY, and GBP.

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No, exotic pairs are not exotic belly dancers who happen to be twins. Exotic currency pairs are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico or Hungary.

Forex: 12 Major currency pairs

The chart below contains a few examples of exotic currency pairs. Wanna take a shot at guessing what those other currency symbols stand for? So if you want to trade exotics currency pairs, remember to factor this in your decision.

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