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Wednesday, December 10, 2008

Forex basics: Currency Pairs in Forex Trading

A currency pair is made up by two nation's currency code. A nation's currency is recognized by a ISO 4217 international three-letter code. Below are the codes for world leading major currencies.
  • USD = US Dollar
  • EUR = Euro
  • JPY = Japanese Yen
  • GBP = British Pound
  • CHF = Swiss Franc
  • CAD = Canadian Dollar
  • AUD = Australian Dollar
Currencies are traded against one another. Therefore, a currency pair is always displayed as XXX/YYY, where XXX and YYY are the ISO 4217 international three-letter code of a nation's currency. Below are the major currency pairs.
  • EUR/USD
  • USD/JPY
  • GBP/USD
  • AUD/USD
  • USD/CHF

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