• Buying And Selling Currency Pairs in FX market

    The concurrent selling and buying of currencies takes place on forex trading. The currencies are traded in pairs and dealers or brokers are used for the trading purpose.
    Take an instance of the British pound sterling and the U.S. dollar (GBP/USD) or the U.S. dollar and the Swiss franc (USD/CHF).
    Currency pairs are used in the selling or buying process in the forex market.

    buying and selling currency in fx market

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    Due to the fluctuating exchange rates, it is hard to determine the strongest currency. However, it can be determined for a given moment.

    buying and selling currency in fx market

    Major Currency Pairs

    Source: https://www.thebalance.com
    The following currency pairs are classes as “Major Currency Pairs” in the forex market. They are frequently traded because of their liquid nature. It is worth noting that the most regularly traded pairs are the ones which contain USD.

    GBP/USDGreat Britain / United States“pound dollar”
    AUD/USDAustralia / United States“aussie dollar”
    USD/JPYUnited States / Japan“dollar yen”
    NZD/USDNew Zealand / United States“kiwi dollar”
    USD/CADUnited States / Canada“dollar loonie”
    EUR/USDUnited States / Eurozone“euro dollar”
    USD/CHFUnited States / Switzerland“dollar swissy”

    Major Cross-Currency Pairs or Minor Currency Pairs

    The USD is not a part of some of the currency pairs. Such pairs are classed as “Crosses” or “Cross-Currency Pairs. Minors is the term used to express the major crosses. The GBP, JPY and EUR are the most frequently traded currencies in the crosses.  

    Euro Crosses

    EUR/GBPEurozone / Great Britain “euro pound”
    EUR/AUDEurozone /Australia “euro aussie”
    EUR/SEKEurozone / Sweden“euro stockie”
    EUR/NZDEurozone / New Zealand “euro kiwi”
    EUR/NOKEurozone / Norway“euro nockie”
    EUR/CADEurozone / Canada“euro loonie”
    EUR/CHFEurozone / Switzerland“euro swissy”

    Yen Crosses

    CAD/JPYCanada / Japan “loonie yen”
    GBP/JPYGreat Britain / Japan “guppy” or “pound yen”
    CHF/JPYSwitzerland / Japan“swissy yen”
    AUD/JPYAustralia / Japan“aussie yen”
    EUR/JPYEurozone / Japan“yuppy” or “euro yen”
    NZD/JPYNew Zealand / Japan“kiwi yen”

    Pound Crosses

    GBP/CADGreat Britain/ Canada“pound loonie”
    GBP/AUDGreat Britain / Australia“pound aussie”
    GBP/CHFGreat Britain / Switzerland “pound swissy”
    GBP/NZDGreat Britain/ New Zealand“pound kiwi”

    Other Crosses

    AUD/CHFAustralia / Switzerland“aussie swissy”
    AUD/NZDAustralia / New Zealand “aussie kiwi”
    AUD/CADAustralia / Canada “aussie loonie”
    NZD/CHFNew Zealand / Switzerland “kiwi swissy”
    NZD/CADNew Zealand / Canada“kiwi loonie”
    CAD/CHFCanada / Switzerland“loonie swissy”

    Exotic Currency Pairs

    In an exotic currency pair, one of the currencies is of a developing nation. The instances of developing nations could be Kenya, Russia or South Korea.

    A few instances of the currency pairs are demonstrated in the following chart. Take a look at the chart and try to guess which currency is represented by the symbols. It is always a good idea to have some background information before you begin trading on Forex. One thing that should be kept in mind is that the exotic pairs are quite expensive to trade as they are not widely traded like the “crosses” or “majors”.

    USD/HKDUnited States / Hong Kong
    USD/MXNUnited States / Mexico“dollar mex”
    USD/ZARUnited States / South Africa“dollar rand”
    USD/DKKUnited States / Denmark“dollar krone”
    USD/SGDUnited States / Singapore
    USD/THBUnited States / Thailand“dollar baht”
    USD/SEKUnited States / Sweden“dollar stockie”

    United States / Norway“dollar nockie”

    Exotic pairs usually come with a high cost as opposed to GBP/USD or USD/CHF. The element of cost should be considered before taking any decision.

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