By www.TheForexNittyGritty.com Trading a Major versus a Minor Forex Currency The basic reason for Forex markets is foreign trade. Companies buying and selling products and services internationally need to be able to exchange currencies. With this system in place, traders can take advantage of it to speculate on the changing values of the currencies of the world. The bulk of the trading in Forex involves the US dollar, Euro, British Pound, Yen, Swiss Franc, and the Canadian and Australian dollars. These are the so called major Forex currencies. As the economies of nations such as Brazil, Russia, India, and China move onto the world stage their trade numbers increase as well as their foreign currency trading volume. As the so called BRICs nations gain prominence, trading a major versus a minor Forex currency becomes increasingly essential for businesses. Likewise export driven economies in Singapore, South Korea, Sweden, and Norway have a constant need to exchange foreign currencies. Traders learn the fundamentals of the appropriate nations in order to prosper in trading a major versus a minor Forex currency. What to Look for in Trading a Major versus a Minor Forex Currency As in a currency trading both fundamental and technical analysis of major Forex currencies and minor currencies is necessary. Fundamental analysis requires looking at the economies, monetary policy, and trade figures of each nation represented in trading a major versus a minor Forex currency. Technical analysis is done on the pair itself. In trading a major versus a minor Forex currency one needs to trade a high enough ranking minor currency that there is sufficient trading volume. Otherwise the statistics behind technical analysis will not be sufficiently accurate to guarantee profits. To a degree someone accomplished at technical trading can ignore the fundamentals when trading currencies. Trading volume is high, liquidity is high, and technical analysis may be sufficient to guarantee profits. However, when trading two minor currencies or trading a major versus a minor Forex currency a firm sense of the fundamentals behind both currencies is essential. This is especially true of the minor currency whose value may be more volatile than one is used to seeing in trading major currencies such as the dollar, Yen, Euro, British Pound, or Swiss franc. Producers versus Consumers in Trading a Major versus a Minor Forex Currency The economies of the world have become increasingly connected and interdependent. Twenty some years ago it appeared, if you read the popular press that Japan was ready to take over the world economically. Then hidden debt problems coupled with a substantially higher wage scale slowed Japanese growth to a crawl. Then the popular press would have us believe that Chinese industrial expansion has no end. But Chinese exports are falling off. There may well be a disastrous collapse of the Chinese real estate bubble.

1. By
www.TheForexNittyGritty.com

2. The basic reason for Forex
markets is foreign trade.
By

3. Companies buying and selling
products and services
internationally need to be able to
exchange currencies.
By

4. With this system in place, traders
can take advantage of it to
speculate on the changing values
of the currencies of the world.
By

5. The bulk of the trading in Forex
involves the US dollar, Euro,
British Pound, Yen, Swiss Franc,
and the Canadian and Australian
dollars.
By

6. These are the so called major
Forex currencies.
By

7. These are the so called major
Forex currencies.
By

8. As the economies of nations
such as Brazil, Russia, India, and
China move onto the world stage
their trade numbers increase as
well as their foreign currency
trading volume.
By

9. As the so called BRICs nations
gain prominence, trading a major
versus a minor Forex currency
becomes increasingly essential
for businesses.
By

10. Likewise export driven
economies in Singapore, South
Korea, Sweden, and Norway have
a constant need to exchange
foreign currencies.
By

11. Traders learn the fundamentals
of the appropriate nations in
order to prosper in trading a
major versus a minor Forex
currency.
By

12. By
www.TheForexNittyGritty.com

13. As in a currency trading both
fundamental and technical
analysis of major Forex
currencies and minor currencies
is necessary.
By

14. Fundamental analysis requires
looking at the
economies, monetary policy, and
trade figures of each nation
represented in trading a major
versus a minor Forex currency.
By

15. Technical analysis is done on the
pair itself.
By

16. In trading a major versus a minor
Forex currency one needs to
trade a high enough ranking
minor currency that there is
sufficient trading volume.
By

17. Otherwise the statistics behind
technical analysis will not be
sufficiently accurate to guarantee
profits.
By

18. To a degree someone
accomplished at technical
trading can ignore the
fundamentals when trading
currencies.
By

19. Trading volume is high, liquidity is
high, and technical analysis may
be sufficient to guarantee profits.
By

20. However, when trading two minor
currencies or trading a major
versus a minor Forex currency a
firm sense of the fundamentals
behind both currencies is
essential.
By

21. This is especially true of the
minor currency whose value may
be more volatile than one is used
to seeing in trading major
currencies such as the dollar,
Yen, Euro, British Pound, or Swiss
franc.
By

22. By
www.TheForexNittyGritty.com

23. Twenty some years ago it
appeared, if you read the popular
press that Japan was ready to
take over the world economically.
By

24. The economies of the world have
become increasingly connected
and interdependent.
By

25. Then hidden debt problems
coupled with a substantially
higher wage scale slowed
Japanese growth to a crawl.
By

26. Then the popular press would
have us believe that Chinese
industrial expansion has no end.
But Chinese exports are falling
off.
By

27. There may well be a disastrous
collapse of the Chinese real
estate bubble.
By

28. And, when the EU, China’s
biggest customer, goes into
recession, China sees its
economy cool off and may see
export competition from the EU
as the Euro falls.
By

29. In trading a major versus a minor
Forex currency volatile foreign
currency rates are the key to
where to trade.
By

30. Careful analysis of fundamentals
and market sentiment will
commonly lead to profits.
By

31. For more insights and useful
information regarding the Forex
markets and foreign currency
trading, visit
www.TheForexNittyGritty.com.