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Currency Forex designated three-letter code, which is used in the payment system SWIFT, for example:

EUR — Euro
USD — U.S. Dollar
GBP — British Pound Sterling
JPY — Japanese Yen
CHF — Swiss Franc
AUD — Australian Dollar
CAD — Canadian Dollar
NZD — New Zealand Dollar

Quotes, bids and offers to buy are always provided for a particular currency pair, for example, EUR/USD. Currency pairs are divided into basic (major), crosses (cross) and exotic (exotic).

Major currency pairs consist of the U.S. dollar and the currencies of the Group of Seven. They are divided into pairs with direct quotation: USD/JPY, USD/CHF, USD/CAD, USD/SGD, and couples with direct quote: EUR/USD, GBP/USD, AUD/USD, NZD/USD.

Cross — the pairs that do not include the U.S. dollar, for example: EUR/GBP, EUR/CHF, EUR/JPY, EUR/NZD, etc.

Exotic couple — all the rest is not too popular, but somehow the pair traded in the market.

The first currency in the pair — base (traded currency), the second — the quote currency (quote currency).

Currency pair exchange rate shows the value of the base currency is to buy it for the quote currency. For example, if the euro against the U.S. dollar (EUR/USD) is 1.3010, it means that one euro is worth 1.3010 U.S. dollars. Exchange rate registered in the numerical value called the quote currency.

In the forex market using double quotes, which consist of the purchase price and sale price of the base currency. The first price — is the one on which you can buy the base currency (Ask), simultaneously selling the quote currency, the second price — the one at which you can sell the base currency (Bid), while buying the quote currency.

The difference between the bid and ask prices is called the currency spread (Spread).

Point — it is the minimum possible price change currency on the Forex. Moreover, in quantitative terms, the lowest possible price change in different pairs are different. For couples where the quote currency (the second currency) are the EUR, GBP, USD, CHF, AUD, CAD, one point is equal fourth (one decimal) decimal places (0.0001). For currency pairs where the quote currency (the second currency) is JPY one point equal to the second character (one hundredth) decimal places (0.01).

Figure — a hundred of points, that is, the price change for a hundred points — a growth/decline in the figure.


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