Base 2: Paires

Currencies

In Forex, there are so-called major currencies.

The symbol of each currency consists of three letters.

The first two letters represent the country of origin.

The third represents the name of the currency of this country.

For example, GBP for Great Britain Pound.

One exception, however, is the euro, which is represented by EUR.

The Swiss franc is represented by CHF: Swiss Franc Community

The major currencies are:

Pairs

In the Forex, we find the major pairs, minor and exotic.

Each major pair is formed by a major currency and the US dollar.

The major pairs are those that cost the least to compromise.

The major pairs are:

Each minor pair is formed by the major currencies between them.

The US dollar is not there.

They are a bit more expensive to compromise but the cost is reasonable.

The minor pairs are:

Exotic pairs are formed by all other currencies.

The US dollar can be included or not.

The transaction cost of these exotic pairs is very high.

Here are examples of exotic pairs:

The Nomenclature of Pairs

The order in which the currencies are represented in each pair is invariable. This nomenclature was established according to the value of the currencies

when currency pairs were created for Forex.

If we take GBP / USD for example, you will never see USD / GBP.

© 2016, 2017, 2018, 2019 Club SPN inc.

La négociation de titres implique un risque élevé et ne convient pas à tous les investisseurs. L’effet de levier peut opérer en votre faveur aussi bien que contre vous. Considérez attentivement vos objectifs d’investissement, votre niveau d’expérience et votre appétit du risque. 

Trading in securities involves a high risk and is not suitable for all investors. Leverage can work in your favor as well as against you. Carefully consider your investment goals, level of experience and risk appetite.

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