Start
trading

Main >
Forex Encyclopedia

Forex Currency Pair | Key Forex Terms

International exchange market (Currency exchange) — is the exchange, where operations on purchase and sale of currency take place between participants of the Forex market;

Forex pip (point) – is the minimum change of price of currency rate

 

Currency operations – contracts of participants of currency market on purchase and sale and settlement, conversion operations etc.;

Currency rate (currency quote) — the price of currency unit of one country expressed in currency unit of another country.

Types of Forex quotes:

  • Direct quote – shows the amount of US dollars contained in national currency unit;
  • Indirect quote – shows the amount of national currency contained in one US dollar;
  • Cross rate – currency units of one country expressed in currency units of another country;

Major currencies

  • EUR – United European currency
  • USD – US dollar
  • GBP – British pound of sterling
  • CHF – Swiss Frank
  • JPY – Japanese Yen

Other currencies

  • AUD – Australian Dollar
  • NZD – New Zealand Dollar
  • CAD – Canadian Dollar
     

Currency pair is the name of text symbols of currency.

For example, EUR/USD = 1.2880

where:

EUR – is the base currency (traded currency)

USD – quoted currency

Base currency (traded) is always put the left.

Quoted currency is always the second
 

Main currencies traded on the market
 

EUR/USD – European currency to US dollar
GBP/USD – British pound of sterling to US dollar

USD/JPY - US dollar to Swiss Frank
EUR/CHF – European currency to Swiss Frank
USD/CHF - US dollar to Swiss Frank
GBP/JPY - British pound of sterling to Japanese Yen
GBP/CHF - British pound of sterling to Swiss Frank
EUR/GBP - European currency to British pound of sterling
EUR/JPY - European currency to Japanese Yen
AUS/USD - Australian Dollar to US dollar

USD/CAD - US dollar to Canadian Dollar

All speculations made by a trader are always conducted with base currency. Thus, buying EUR/USD, you buy Euro for US dollars.

Spread – is the difference between price of purchase (Ask) and price of sale (Bid)

Cost of one point depends on volume of your trade and is equal:

Volume of trade multiplied into minimum change of price = cost of point

Open position – is the trade for purchase/sale, which is not closed and is present on market.

Credit leverage – is the relation of borrowed capital to trader's own funds.

For example, Forex broker provides trader with credit leverage 1:100, thus, trader can make a trade with volume 100 times more than his deposit.

You might also be interesed in:

 

 

Close
Log in

Show password

Hide password

 Forgot password?
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .

Our best awards:

FreshForex is a brand that provides access to online trading for clients from more than 158 countries all over the world. The Company's partners are the licensed European liquidity providers, banks, payment aggregators and systems with which the company has been cooperating for more than 19 years.
Clients must be at least 18 years old to use the services of the Company.
The company's services and information on the site are not intended for citizens and residents of some countries, such as Belgium, China, North Korea, France, Hong Kong, Russian Federation, Spain, Great Britain, USA, and also countries identified by the FATF as high-risk countries or countries with serious AML/CFT deficiencies; countries or regions that are under international sanctions. A complete list is available on the "Countries where the company's services are not provided" page. The Company does not have representative offices in the Russian Federation and does not register clients from the Russian Federation.
Risk Warning: Trading financial instruments with leverage carries high risks and can result in both profits and losses. Potential losses are limited by the deposit amount. Before deciding to trade, the client should assess their risk tolerance, experience, and knowledge level.

Freshforex.com uses cookies for better website operation, traffic flow analysis, and personalization. By using this website you agree to our Cookie Policy.
User Data privacy is protected in accordance with GDPR. The SSL certificate installed on the website transfers the information over a secure protocol.
The site contains links to websites of third parties. The Company does not check or control the third-party resources that are in any way related to the FreshForex site, so the Company is not responsible for any third-party information or materials posted.
By creating a link to a third party website, the Company does not endorse or recommend any products or services offered by the third party.
The website content is intended for informational purposes only. It should not be regarded as an offer or solicitation to any person in any jurisdiction in which such an offer or solicitation is not authorized. It also should not be considered as an offer/solicitation to any person to whom it would be unlawful to make such an offer or solicitation, nor regarded as a recommendation to buy, sell or otherwise deal with any particular currency or any other trading asset investment. If you are not sure about your local trading regulations, please, leave this website immediately.
© 2004—2024 FreshForex – Forex broker
Reproduction of the contents is allowed only with active hyperlink to original source.
Riston Capital Ltd (20623 BC 2012) with registered address at Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and the Grenadines.