Method explained here http://andylank.com/cash-flow/ What is forex trading all about

1. What Is Forex
Trading All
About?

2. EUR/USD - most popular pair with
the lowest spread. This pair is an
ideal choice for beginners, since it
responds quite well to basic
technical studies and rules, which
traders learn in the beginning.
EUR/USD is not too volatile under
normal market conditions and,
thus, can be traded safely with
lesser risks and closer stops.
My Best Forex System on page 4

3. Once you are older in Forex, you
will see the ratio. No point of taking
hundreds of pips when the profit is
low. So you start to take high risk
high return trade. These trades do
not give you high pips but the profit
margin is high. So the bottom line
is that EUR/USD and USD/JPY are
the two most actively traded
currency pairs in the forex market.
GBP/USD is third, with EUR/JPY
generally forth.
My Best Forex System on page 4

4. But the EUR/USD isn't the only
worthwhile currency pair you can
trade. In fact, at the very top of the
Forex market, there are 4 pairs
which form the vast majority of
trades and volumes. These pairs
are the EUR/USD, GBP/USD,
USD/JPY, and the USD/CHF. As
you can, a total of 5 currencies
make up the 4 top pairs (Euro,
British Pound, US Dollar, Yen, and
Swiss Franc) and the Dollar is
present in all of them.
Best Forex System Explained
http://andylank.com/cash-flow/

5. Interbank market A loose network
of currency transactions
negotiated between financial
institutions and other large
companies. Leverage The ability to
control large dollar amount of a
commodity with a comparatively
small amount of capital. Also
known as 'gearing'. Put A put
option gives the option buyer the
right to sell a particular currency
pair at a stated exchange rate.
Rollover The process of extending
the settlement date on an open
position by rolling it over to the
next settlement date.
Best Forex System Explained
http://andylank.com/cash-flow/

6. I have been trading this pair for
more than 3 years now and I really
love it. It has a consistent pattern.
If you look at the graph and history
of this pair you'll know what I
mean. A secret that nobody tells
you. What's your favorite pair to
trade? If you are new to forex, I will
suggest you to study AUDUSD and
know its behaviour. Trading less
known pairs may carry with it a
bigger commission which can eat
into your profits.
Best Forex System Explained
http://andylank.com/cash-flow/