This chapter covers:
BASICS OF CURRENCIES AND CURRENCY PAIRS
Here we are going to cover only what you really need to know about currency pairs in order to understand the material that follows. At some point, perhaps even before you proceed to the next chapter, you'll want to know more and can search the Internet to explore answers to such questions as:
Trade Only the Most Liquid Currencies
Though most currencies are convertible and tradable, most traders stick to the eight major currencies (known as majors) because they have the most liquidity or availability, meaning that lots of buyers and sellers are usually present at any given time That means you're likely to get the best price and avoid slippage (discussed in Chapter 1).
For example, if you want to buy or sell something, ...