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Chapter 1, Part II. What is a trading object in the FOREX market? Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 14, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Pipruit: Ok, I’ve got it! It’s not so complicated like it seemed in the beginning. And what particular currencies are traded on FOREX?​

    Commander in Pips: Most of the currencies in the world are traded. That’s too big to get into nopw. Let’s say I specify the major ones first. They are EUR, USD, NZD, JPY, CHF, GBP, CAD, and AUD…

    Pipruit: Hold on, hold on… Let’s say I’ve guessed that USD is “US Dollar”, but what are some others?​

    Commander in Pips: Ok, the question is accepted. Let’s me explain the name system. All pairs have three-letter names. First two letters mark the country, and the third letter marks currency. So, for example – GBP, “GB” stands for Great Britain, “P” – stands for Pounds.

    Pipruit: Cool, now let me guess, that “CA” means Canada, and D means Dollar.
    Commander in Pips: Exactly. I’ve made a table for you with the names and symbols of the major currencies. They are “Majors” because the major turnover on the market every day with these currencies.

    Pipruit: Thanks, but let me one more question, Chief. Once I’ve heard how a FOREX trader was screaming on the phone “Buying cable, buying cable!” But cable looks like a commodity rather than a currency and we’ve just come to conclusion that FOREX is a money market.

    [​IMG]
    Commander in Pips: This is simpler than you think. The point is that some currencies also have nicknames and Cable is a nickname of the GBP. Ok, I’ll also add some of the common nicknames into the table.


    [​IMG]




    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them below, we'll notify Sive, and get them answered within 1 week.

    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
    #1 Sive Morten, Dec 14, 2013
    Lasted edited by : Jan 31, 2016
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