Welcome back to the Traderess Forex Masterclass. In this installment, we will delve into the various tradeable assets available to you in the Forex market. An understanding of these assets will help you select the ones that best align with your trading strategy and risk tolerance.

Forex Market Explained

Forex, or the foreign exchange market, is a decentralized global marketplace where all the world's currencies are traded. Every day, over $6 trillion worth of currencies are bought and sold. The sheer volume and 24/5 availability of the market make it a popular choice for traders.

Major Currency Pairs

Major currency pairs are the most traded pairs in the Forex market. These pairs involve the US dollar paired with one of the other seven major economies in the world (Eurozone, Japan, UK, Canada, Australia, Switzerland, and New Zealand). Examples include the EUR/USD, USD/JPY, and GBP/USD. These pairs are popular due to their high liquidity and lower spread.

Minor Currency Pairs

Minor pairs, also known as cross-currency pairs, do not include the US dollar. These pairs are made up of major world currencies other than the USD, such as EUR/GBP, EUR/JPY, and GBP/JPY. These pairs may have slightly lower liquidity and higher spreads compared to major pairs.

Exotic Currency Pairs

Exotic pairs involve a major currency and the currency of a developing economy, such as the USD/PLN (US Dollar/Polish Zloty) or GBP/ZAR (British Pound/South African Rand). These pairs are less liquid, have higher spreads, and are more volatile, but can offer significant opportunities for profits.

Commodity Currencies

Commodity currencies are currencies from countries with large quantities of commodities like oil, gold, or agriculture. For example, Canada (CAD), Australia (AUD), and New Zealand (NZD) are known for their commodity-linked economies. Their currencies can often move in correlation with commodity prices.

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