Major currency Pairs In Forex Trading
As you know, each State has its own currency in the international
market given each currency special symbol Symbol know him to facilitate
the interaction between traffickers without errors occur for example,
may resemble several countries in the name of the currency with which
the dollar is the name of U.S. currency and the currency of Australia
and the currency of Canada and many other countries Even talking errors
when buying and selling was internationally agreed that each country's
currency is given its own code symbol known in different parts of the
For example, the U.S. dollar is the code USD short US dollar
The Canadian dollar symbol is a CAD short for Canadian dollar
The symbol of the Australian dollar is AUD short for Australian dollar
Thus each currency tracking any special symbol state symbol know.
And you, in principle, you can buy and sell currency of any country of
the world. But trading the currency market is concentrated mainly buying
and selling four currencies:
Euro: a single European currency symbol EUR.
Japanese Yen: which is the currency of Japan and Symbol JPY short for Japanese yen.
Sterling: It is Britain's currency symbol GBP short for Great Britain pound.
The Swiss franc: which is the currency of Switzerland and Symbol CHF short for Confidralic Helevitica Franc.
In the currency market is 80% of the trading in the sale and purchase of the previous four currencies.
But compared to what?
When you want to buy the euro, what would pay interview? When you want to sell the euro so what you'll get?
And when you want to buy the yen, what would pay interview? When you want to sell the yen so what you'll get?
On the U.S. dollar
Dealing buying and selling predecessor currencies, it will all be against the U.S. dollar.
Remember we said that currency trading is in the form of pairs pairs
When you buy a currency must sell - pay - against which other currency,
and vice versa. The currency that you get is the currency you are buying
and paid by the currency is the currency in which it sells.
In the currency market when you buy euro interview will sell the U.S.
dollar, and when you sell the euro will buy interview the U.S. dollar.
When you buy the yen interview will sell the dollar, and when you sell the yen will buy interview dollar.
Thus of the pound sterling and the Swiss franc.
You may wonder: Why are most of the transactions in these currencies in particular? Can not buy and sell other currencies?
Answer: Did you ever think that you go to the ATM and requests buy Thai Baht?!!
If you try to find it difficult to find the ATM sell you Thai Baht
Because few people they can use the Thai currency in your country.
But if I went to the cashier to buy or sell the U.S. dollar or the
pound sterling example Vstgdama easily because there are a lot of people
are dealing with these two currencies acceptable understanding not only
in the United States and Britain, but from various countries around the
world that demand for them is high.
And because the euro, the
yen and the pound sterling and the U.S. dollar are the currencies of
countries with the largest economy in the world, and because most
dealings between states and individuals are one of these currencies is
why is 80% of the trading in such currencies.
The Swiss franc
doubt that the Swiss economy on the strength of ايقارن economy the
previous four states only that the global custom made Swiss economy and
its currency is the safe haven franc at major international calamities,
but I doubt you know that most of the world's richest men keep their
money in Swiss banks ..!!
Because the U.S. dollar is the most important of these currencies at all.
Is the main currency for all of the previous four currencies.
When you buy the euro dollar you pay when you sell you get dollars.
When you buy the Swiss franc dollar you pay when you sell you get dollars.
As well as for the yen and the pound sterling.
The dollar is the common currency against all currencies where they are treated every other currency unit against the dollar:
Euro against the dollar EUR / USD
GbpUsd GBP / USD
UsdJpy USD / JPY
Dollar against the Swiss franc USD / CHF
This currency is called the four when they bought and sold against major currencies dollar Majors.
In addition to dealing in the previous four currencies against the
dollar, you can also buy and sell currencies of other countries in the
currency market was also higher against the dollar, such as:
U.S. dollar against the Canadian dollar USD / CAD.
Australian dollar against the U.S. dollar AUD / USD.
When you buy the Canadian dollar would sell - will pay - the U.S.
dollar, and when you sell the Canadian dollar will buy the U.S. dollar.
The same thing applies to the Australian dollar.
Of course, you can buy any currency against the dollar, for example,
you can buy the Saudi riyal and sell the dollar as you do when you go to
a money exchange.
But in the international currency market,
the majority of currency speculators do not exceed that we have
mentioned is concentrated 80% of the deal on the four major currencies
against the dollar.
This gives the advantage of focusing the stores to the forex market from other traders to other markets.
Currency hybrid Croses
You may be wondering what if I wanted to buy the currency without pay
U.S. dollar, but I have to pay - for sale - another currency?
What if I wanted to buy the euro and sell sterling interview? Is this possible?
Answer: Yes possible we have said that you can buy and sell any currency against any other currency.
You can buy the euro and sell interview sterling EUR / GBP.
You can buy the franc and pay interview Japanese Yen CHF / JPY.
So you can buy any currency against any other currency without the need of the U.S. dollar.
Called currency to be bought or sold against currencies other than the U.S. dollar denominated hybrid CROSES.
The most famous hybrid currencies which are traded in the currency market are:
EURGBP EUR / GBP.
EurJpy EUR / JPY.
EURCHF EUR / CHF.
British pound against the Japanese yen GBP / JPY.
British pound against the Swiss franc GBP / CHF.
But as we mentioned earlier, the vast majority of traders are focusing
on the sale and purchase of four major currencies mainly, and there are
those who prefer to deal in trading some hybrid currencies.
Posted in: Forex