Currency pairs: a starting point
Understand how a quote is expressed before exploring the decisions behind a trade.
Foundations
Explore currency-pair quotes, essential trading terms and ways to build a reading list with traceable sources.
Building a considered reading list
Reduce repetitive inputs by checking the source, date and context of what you read.
ATFX Editorial1 min read
Bond Price, Coupon and Yield: Three Different Numbers
Coupons describe contractual payments, while yield also depends on price and time. Identify the measure before interpreting bond news.
ATFX Editorial1 min read
What Buying or Selling a Currency Pair Means
A currency-pair direction involves two currencies. Identifying the base currency helps separate opening direction from closing an existing position.
ATFX Editorial1 min read
What a Candlestick Contains: Start with Four Prices
Use open, high, low and close to understand candle bodies and wicks, along with the limits of this compressed price record.
ATFX Editorial1 min read
CFDs: Price Exposure Is Not Asset Ownership
Understand CFD settlement, leverage and costs, and distinguish price exposure from holding the underlying asset.
ATFX Editorial1 min read
Forex and Stocks: Compare the Exposure, Not a Winner
Currency pairs and company equity have different drivers. Compare rights, hours, costs and product structure rather than declaring one market superior.
ATFX Editorial1 min read
Derivatives: Underlying Assets, Expiry and Settlement
Futures, options and CFDs depend on contract rules. After identifying the product, understand the actual obligations it creates.
ATFX Editorial1 min read
ETFs: Holdings, Fees and Tracking Methods
ETFs can provide basket exposure, while diversification, costs and ownership depend on the actual product.
ATFX Editorial1 min read
EUR/USD and Its Inverse: Reading the Conversion
Identify base and quote currencies, then use a simple conversion to interpret a rise or fall in EUR/USD.
ATFX Editorial1 min read
Why Foreign Exchange Exists: Conversion and Risk Management
Foreign exchange supports cross-border payments, corporate hedging and asset allocation as well as speculative trading.
ATFX Editorial1 min read
Fundamental and Technical Analysis: Different Questions
Fundamentals address economic or business context, while technical analysis studies price records. Combining them still requires independent reasoning.
ATFX Editorial1 min read
Lot Size and Exposure: Why 0.1 Lot Is Not a Universal Risk
Lots describe contract quantity. Instrument specifications, price and movement determine the resulting monetary exposure.
ATFX Editorial1 min read
Margin and Profit or Loss: Different Calculations
Margin measures collateral requirements; profit or loss measures the effect of price movement. Keep the calculations separate.
ATFX Editorial1 min read
Ordinary and Preference Shares: Compare the Rights
Dividend terms, voting rights and claim priority depend on the share class. Preference does not mean risk-free.
ATFX Editorial1 min read
Bullion and Price Contracts: Different Forms of Gold Exposure
Physical gold involves purity, custody and resale conditions that differ from contracts providing only price exposure.
ATFX Editorial1 min read
Pips and Pip Value: Price Units versus Money
A pip measures a price change. Account profit or loss also requires position size and, sometimes, currency conversion.
ATFX Editorial1 min read
Spot, Futures and CFDs: Four Questions to Ask
One underlying market can support several instruments. Begin with ownership, expiry, settlement and carrying costs.
ATFX Editorial1 min read
How Spreads Affect Results: Start with Bid and Ask
The spread separates bid and ask and can change with market conditions. A full cost comparison also includes other charges.
ATFX Editorial1 min read
Stock CFD Dividend Adjustments versus Share Dividends
Ex-dividend events may affect both the reference price and account adjustments. Consider them together when evaluating the outcome.
ATFX Editorial1 min read
USD/JPY: Quote Direction and More Than Rate Differentials
A rising USD/JPY means a stronger dollar relative to yen, while policy, rate differentials and risk sentiment all require attention.
ATFX Editorial1 min read