Hey Everyone,
I'm currently reading babypips, and I feel that I have a pretty good grip on the basics (pre-school) but I just wanted to ask a few questions to make sure.
Okay one example given in the basics was GBP/USD = 1.7500. In this example, the GBP is the base currency and the USD is the quote currency. If I feel that the pound is going to gain value in relation to the USD I would sell my USDs for GBPs. Or conversly if I believed that the pound would lose value in relation to the USD I would sell my GBPs for USDs. Now my questions is - does that mean one can only trade pairs that contain his native currency? After all how would I, for instance, trade EUR/GBP when neither are my native currency, and when I don't own any euros or pounds?
thanks,
Cricket
I'm currently reading babypips, and I feel that I have a pretty good grip on the basics (pre-school) but I just wanted to ask a few questions to make sure.
Okay one example given in the basics was GBP/USD = 1.7500. In this example, the GBP is the base currency and the USD is the quote currency. If I feel that the pound is going to gain value in relation to the USD I would sell my USDs for GBPs. Or conversly if I believed that the pound would lose value in relation to the USD I would sell my GBPs for USDs. Now my questions is - does that mean one can only trade pairs that contain his native currency? After all how would I, for instance, trade EUR/GBP when neither are my native currency, and when I don't own any euros or pounds?
thanks,
Cricket