In learning about FOREX trading for beginners, know that all FOREX trades are comprised of currency pairs and currency codes. The pair is made up of two currencies, one being bought and the other sold simultaneously…and each with their own unique 3 letter codes, sometimes referred to as foreign currency codes. The currency codes for foreign exchange pairs look like this: EUR/USD, USD/JPY, etc. While simulateous buying/selling of FOREX currencies can be a bit confusing to a FOREX beginner and those used to trading a single equity (ex: stock) or commodity future (corn, soybeans, gold, etc.), try thinking of currency pairs as a single unit. When foreign exchange trading, you can trade just about any FOREX pair you wish. Some sources estimate that just 14 major currencies represent over 90% of all currency trading. And within that 90%, a large percentage of FOREX trading (~75%) occurs in just four foreign currencies. Those currencies are the U.S. Dollar, the Euro, the Japanese Yen and the British Pound. These are known as major FOREX pairs. Because these 4 currencies are the most heavily traded of all FOREX currencies, the benefits of trading them is twofold: (1) entering and exiting trades is extremely fast and easy due to massive market liquidity, and (2) they offer the lowest PIP spread, meaning they cost you the least to trade why buying/selling The Major Codes and Currency Symbols
As noted above, all FOREX pairs are represented by a unique three letter foreign currency symbols. The top eight most actively traded of these currencies (4 most traded listed first) and their codes are:- Euro - (EUR)
The most actively traded major currency pairs and currency codes (the 3 most traded listed first)are: You can learn more about pair exchange rates and the bid/ask components of FOREX trading pairs in our section on
what does FOREX trade mean. FOREX Pairs Nicknames
If you are a FOREX beginner, you might not know these more popular and heavily traded FOREX pairs have picked up their own nicknames by which FOREX traders may refer to them.
These nicknames can vary from major trading center to major trading center (NYC, London and Tokyo). Below is a short listing of these FOREX pair nicknames: Currency Pair Nickname The FOREX history behind the growth of these pairs that has lead to todays FOREX market can be an interesting and informative read. There is a very unique language in FOREX trading. For beginners it is indeed like learning a new foreign language! We hope this helps you better understand currency pairs and currency codes that you will encounter in your foreign exchange trading. Click the following link to return to the page top of
Currency Pairs and Currency Codes As with Future Trading, trading Foreign Exchange instruments carries In trading any of the above mentioned financial instruments, only risk capital should be used. The information on this website is provided purely for informational You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. Futures-Trading-Mentor.com expressly disclaims all liability for the use or Decisions based on the information contained in this site are the sole responsibility of the visitor, and in exchange for using this site, the visitor agrees to hold Futures-Trading-Mentor.com harmless against any claims for damages arising from any decisions that the visitor makes based on such information. While the information on this website is believed to be accurate at the time it is posted, we cannot give any assurances that the information is accurate, complete or current at all times. |
