Unit 02 · 35 minutes
The Forex Market and Currency Pairs
Learn how quotes, participants, sessions, liquidity and economic forces shape the forex market.
By the end, you can
- ✓Read a currency quote
- ✓Classify major, minor and exotic pairs
- ✓Choose a sensible session for a schedule
Reading the quote
In GBP/JPY, GBP is the base currency and JPY is the quote currency. A price of 198.50 means one pound is valued at 198.50 yen. Bid is what the market pays to buy from you; ask is what you pay to buy.
Majors, minors and exotics
Major pairs include the US dollar and usually have deeper liquidity. Crosses pair major currencies without USD. Exotic pairs include a major currency and a smaller or emerging-market currency and can carry wider spreads and sharper gaps.
Who moves the market
Banks, central banks, asset managers, businesses and traders transact for different reasons. Price reflects their combined demand, hedging, speculation and liquidity—not a single hidden actor.
The trading day
Liquidity rotates through Asia, London and New York. Overlaps can increase activity; quiet hours can widen costs. The best session is the one that suits the chosen pairs, tested method and personal schedule.
Why exchange rates move
Interest-rate expectations, inflation, employment, growth, risk sentiment and unexpected events can change demand for a currency. A calendar tells you when scheduled information arrives; it does not tell you the outcome.
Practice room
Turn the idea into a decision
These are fictional learning scenarios. They do not place trades or use real money.
Finish this unit
Pass each required activity, then save the current lesson version to your record.
Public lesson Q&A
Ask what is still unclear
No published questions yet.