Category: Currencies

Currency Pair, Currency Pairs

Forex trading involves the simultaneous buying of one currency and selling another. The currencies involved in a single trade form a currency pair. The first currency quoted in a currency pair is called the base currency, while the second currency is called the quote currency or the counter currency. When an exchange rate is quoted, it is always expressed as the number of units of the counter currency needed to buy one unit of the base currency.

While there are several currency pairs, the top four currency pairs that account for 70% of the total daily trade are:

Currency Symbols, Money Symbols

Currency symbols are graphical signs that represent a particular country’s currency. For instance, the currency symbol for the euro is € and that for the US dollar is $. Currency symbols are used to replace currency names or currency codes. For example, the currency name “Great British Pound” and its currency code “GBP” can be replaced with the currency symbol “£.” While currency symbols are used commonly in the respective countries, the ISO 4217 currency codes are used internationally.

Currency Converter

Currency

A form of money that serves as a medium of exchange in a country and is meant for public circulation within it is called currency. It also functions as a standard measurement and store of value. Paper notes and coins issued by central banks become the currencies of the respective countries.

US Dollar Converter, US Dollar Conversion

The US dollar converter is a ‘conversion’ tool which instantly converts the value of a specific domestic currency into US Dollars and vice versa. Such conversions are based on current exchange rates. The US Dollar converters are primarily used by traders for daily Forex trading. It plays a key role in the foreign exchange market, which is considered to be the world’s largestreporting 24/7 trading system that is worth $3.2 trillion approximately.

Currency Charts, Currency Graphs

Carry Trade

When referring to an asset, the term “carry” means the return received (if positive) or cost incurred (if negative)of holding the asset. A carry trade is a currency trade in which low-yielding currencies are borrowed and high-yielding currencies are lent. A trader uses this strategy to benefit from the difference between the interest rates. The level of profits made from the trade depends on the difference in interest rates and the amount of leverage used by the investor.