To anyone out there I just have a very basic question about forex how does it work? (1) Can you pair the currency of choice or do you have to pick from a certain amount of pairs. (2) Also do you have to predict two markets...when I trade commodities it's very basic I think oil will increase I buy a futures contract...it's that simple. With forex it's different I'm pairing two different currency so am I trying to predict two different markets. Let's say I pair the dollar with the pound. I think the dollar will go up I think the pound will go down. I'm pairing two markets...do they have to move inversely to each other? I trade with elliott wave What I plan on doing is spotting currency that are overbought and pairing them with currencies that are undersold. This is why I ask are your trading two markets
You have to choose from a pre-set pool of pairs that your broker provides. You should read more about the currency market and the basic dynamics of exchange rates - that will clear things up, and will make your question about inverse movement kind of irrelevant. It may make you rethink that strategy, also, because it kind of won't make sense.