Forex Currency Pairs Forex Currency Pairs
Persons new to the Forex market will need to learn all about currency pairs and the Forex market. There are many different possible combinations when it comes to these pairs. However only eight of these are considered to be major pairs and they are pairs of the following currencies: USD, CAD, NZD, AUD, EUR, GBP, CHF and JPY. These acronyms are short for US Dollar, Canadian Dollar, New Zealand Dollar, Australian Dollar, Euro, Great Britain Pound, Swiss Franc and Japanese Yen. These are the major currencies that create pairs such as EUR/USD.
When dealing with Forex Currency pairs you also need to know about five different Euro crosses, six Yen crosses, four Pound crosses, six other types of crosses as well as the exotic pairs which are six in number. For the Euro crosses, the other currencies are Swiss Franc, Great Britain Pound, Canadian Dollar, Australian Dollar, American Dollar and New Zealand dollar. For Yen crosses, they are NZD, AUD, CAD, CHF, GBP, and EUR. Pound crosses include the following currencies: NZD, CAD, AUD, and CHF. Of the other crosses three include AUD while one contains CAD and two contain NZD.
When it comes to currency pairs, the exotic pairs always start with the USD and other currencies such as Hong Kong Dollar, Singapore Dollar, Rand, Baht, Peso Denmark Krone, Norwegian Krone and Sweden Krona. However, these are not all the listings of exotic pairings nor are it a full listing of all the currency pairs that have been traded and are currently traded in the Forex market. All currencies of the world are traded in pairs. The quote usually runs in the base and counter currency. The base is the first currency and the counter is the second currency.
How this works is that you buy one and sell the other. When it comes to Forex currency pairs, the market is wide open. Bear in mind that some brokers will charge higher prices for the exotic pairs as they are the less traded ones. However profit potential here is much greater. Most of the time, the eight different currencies that are traded in pairs are the ones used. There are many other pairs that are available for trading but most brokers will usually use the eight different pairs that have been named above. Learning the different currency pairs and the different currencies are important if you are going to trade Forex.
