If you’ve already gone through Lesson 1, it’s time to take things a step further. Lesson 2 dives deeper into the building blocks of actual forex trading — understanding the different types of currency pairs, how they work, and one of the most critical decisions you’ll make as a trader: choosing the right broker.
👉 Watch it here: https://aralforex.com
(Note for paid students: Please log in to your account, go to dashboard >> Preparatory Forex Course >> Nursery – Q2)
📘 What’s Covered in Lesson 2?
1. Minor vs. Major vs. Exotic Currency Pairs
Not all currency pairs are created equal. In this section, we explain the three main categories:
- Major pairs are the most traded in the world and always involve the US Dollar (e.g., EUR/USD, USD/JPY). They offer high liquidity and tighter spreads, making them ideal for beginners.
- Minor pairs (also called cross pairs) don’t include the USD but still involve major world currencies like the Euro, British Pound, or Japanese Yen (e.g., EUR/GBP, AUD/JPY). They’re still widely traded but can have slightly wider spreads.
- Exotic pairs involve one major currency paired with the currency of a developing or smaller economy (e.g., USD/PHP, USD/SGD). These can offer unique opportunities but come with higher volatility and wider spreads — making them better suited for more experienced traders.
Understanding these categories helps you manage risk and choose the right trading environment for your skill level.
2. Base and Quote Currency
Every currency pair has two components — the base currency (the first one listed) and the quote currency (the second). For example, in EUR/USD, the Euro is the base and the US Dollar is the quote. The price tells you how much of the quote currency you need to buy one unit of the base currency. This concept is fundamental to understanding how profit and loss work in every single trade you will ever make.
3. How to Choose a Broker
Your broker is your gateway to the forex market, which makes this one of the most important decisions you’ll face as a new trader. In this section, we cover the key factors to look for.
We’ll help you evaluate brokers confidently so you don’t fall into common traps.
❓ Have Questions or Concerns?
Our FAQ page is always available if you need quick answers or run into any issues:
👉 Frequently Asked Questions (FAQs)
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Lesson 3 is coming soon. Stay tuned and keep the momentum going! 💪