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Let's assume we're trading the Eurodollar and us states Dollar FOREX pair (EUR/USD). The first currency your pair (EUR/USD) is known as the base currency, which is the Euro in such cases. The second currency is called quoted currency (EUR/USD). In this example may be the US Pound.

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Rule #3: never stop learning. That's what you are paying for. There are no quick, easy or foolproof methods of earning a living by online forex global forex trading. If there were any, everybody and their mother potential doing out. Learning is what gradually shifts the chances in your favor. Online forex trading without knowledge is a game of chance. With knowledge, now you have an art form.