Currency Trading Basics - The Basic Details That Make the Difference in Currency Trading

As the popularity of the Forex continues to grow, more and more investors are beginning to look to trading currencies as a solution to quitting the rat race. If currency trading has interested you but you don't yet understand how it works then here's your primer.
Forex Trading
Unlike other futures trading, the Forex doesn't trade grain or cattle it trades money, or more specifically the exchange rates of money. These are called currency pairs, which is the exchange rate of one nation's currency compared to another.
The top traded currencies are:
AUD/USD - The Australian Dollar against the US dollar, called the Aussie
EUR/USD - The Euro against the US Dollar called the Euro
USD/CAD - The US Dollar against the Canadian Dollar called simply the Canadian Dollar
USD/JPY - The US Dollar against the Japanese Yen called the Yen
The first currency listed in the pairs is called the "base" currency while the second is called the "counter" or "quote." These "pairs" make up about 75% of all volume traded in the Forex markets and they are traded by choosing which currency in the pair you think will rise or fall against the other. So if a trader thinks the Euro is going to rise against the US dollar, he would go long (buy) the EUR and go short (sell) the USD. Similarly if you think the USD will rise against the AUD, you would short the AUD and got long on the USD in the AUD/USD pair.
Numbers
When the pairs are quoted they are commonly quoted as the bid ask spread between the base and the counter currency. The difference is expressed in one number, which is the amount it takes to buy a single base currency. For instance if the bid ask for EUR/USD is listed as 1.2545 then it would take 1.2545 USD to buy a single EUR at the current exchange rate. So though two currencies are being traded only one number is quoted and it is how many of the last currency it takes to buy the first.
The Pip
You will undoubtedly hear the word pip when discussing currency trading. As in any occupation a cool insider language is a must, and in currency trading the Pip is the insider term for a single "Price Interest Point." This is how moves in the market are defined. So a move in the Aussie (AUD/USD) from 1.2560 to 1.2575 would be a jump of 15 pips. The pips are what you are looking to gain. More pips equal more profit.
Next, go beyond currency trading basics and discover how today's technology has made it possible for trading robots to trade the markets for you. After all even the best trading advice can be ruined by your emotions. Consider using a trading robot that not only knows trade signals, but also trades 24/7 without any emotion.