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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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