Forex Currency Pairs and Lots, What is Base Currency and Cross Currency?

Forex Currency Pairs:
          Most of the currencies, their countries, and their international standards organization codes used in the forex market to make currency pairs.

Major currency pairs:
         Major currency pairs are formed by pairing currencies from countries with extremely developed economic and financial systems. Major currency pairs are the mainly liquid and seriously traded currency pairs on the currency market. Currencies with the majors contain the U.S Dollar, euro, British pound, Japanese yen, Swiss franc, Canadian dollar, Australian dollar.

Cross Currency pairs:
           Some currencies are not straight quoted beside each other; quite, they are unnaturally traded by combining two different pairs. These pairs, recognized as cross pairs, consist of currency pairs such as GBP/JPY, EUR/JPY, EUR/CHF and GBP/CHF. When a dealer executes a trade to buy GBP/JPY, the trade is really created by buying GBP/USD and selling USD/JPY. The dollar module of this trade is equaled out and the dealer ends up buy GBP and sells JPY. Because these pairs are combined with two different currency pairs, the spread or cost to trade a cross pair is considerably more than a usual major currency pair, such as GBP/USD.

Currency Lots:
          Currencies are traded in typical lot size to assist professional trading on the forex market. The normal trade lot is 100,000 units of the base currency. Most currency dealers present 10,000 unit mini lots and 1,000 unit micro lots. Several currency dealers present a 100 unit nano lot. Positions can be sized bigger by purchasing multiple lots. Luckily, you don’t actually require $100,000 in your trading account to buy a single average currency lot. Currency brokers provide different levels of leverage, allowing you to manage full sized lots with considerably less investment in your account.