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TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM
Table 10.13 Major Currency Pairs
Description Nickname ISO Code
Euro/U.S. dollar Fiber EUR/USD
U.S. dollar/Japanese yen N/A USD/JPY
British pound/U.S. dollar Sterling GBP/USD
U.S. dollar/Swiss franc Swissy USD/CHF
U.S. dollar/Canadian dollar Loonie USD/CAD
Australian dollar/U.S. dollar Matie or Aussie AUD/USD
New Zealand dollar/U.S. dollar Kiwi NZD/USD
This table is intended for educational purposes only. Information is subject to change. Readers are advised to consult
with their broker or data provider for current information.
Cross-currency pairs do not involve the U.S. dollar on either side; an example is
GBP/CHF, which is a sterling cross. Some other cross-currency pair types include:
• Euro crosses, such as EUR/CHF.
• Yen crosses, such as CAD/JPY.
• Sterling crosses, GBP/NZD.
Forex Symbology
When trading in currency pairs, currencies are always quoted in relation to another
currency. The value of one currency is reflected through the value of the other.
For example, if you want to know the exchange rate between the euro and the U.S.
dollar, the quote could be:
• EUR/USD = 1.4362
• On the left, EUR, is the base currency, the stronger one listed first.
• On the right, USD, is the counter currency, the weaker one listed second.
This evolved over the years to reflect the traditionally strong currencies versus
traditionally weak currencies.
The value of the base currency is always one unit, and the counter currency is what the
one unit equals in the other currency. In this example:
• 1 EUR = 1.4362 US Dollars
The base currency (the stronger currency, listed first) is what you’re buying or selling
when you buy or sell the pair. It’s also the face amount of the trade. So, if you buy
100,000 EUR/JPY, you’ve just bought 100,000 euros and sold the equivalent amount in
Japanese yen.
Your profits and losses will be denominated in the base currency.
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