currency pair convention

Create a CMEGroup.com Account: More features, more insightsEver wonder what it means when you see currency quotations like these?Currencies are quoted in relation to another currency. In the above case, someone buying 1 euro will have to pay US$1.33; conversely one selling 1 euro will receive US$1.33 (assuming no FX spread). Forex traders buy EUR/USD pair if they believe that the euro would increase in value relative to the US dollar, buying EUR/USD pair; this way is called going long on the pair; conversely, would sell EUR/USD pair, called going short on the pair, if they believe the value of the euro will go down relative to the US dollar. The GBP/USD pairing is known by traders as Currencies are traded in fixed contract sizes, specifically called lot sizes, or multiples thereof. Historically, this was established by a ranking according to the relative values of the currencies with respect to each other,The most traded pairs of currencies in the world are called the The Majors are: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD.In everyday foreign exchange market trading and news reporting, the currency pairs are often referred to by nicknames rather than their symbolic nomenclature. The company is comprised of four Designated Contract Markets (DCMs). These are often reminiscent of national or geographic connotations. Many retail trading firms also offer 10,000-unit (mini lot) trading accounts and a few even 1,000-unit (micro lot). For example, the Euro is generally considered the most dominant base currency, followed by the Pound Sterling, the Australian Dollar and the New Zealand Dollar. CHF is the three-letter symbol for the Swiss franc.American terms are currency pairs where the quote convention places the USD in the terms location.For example, the British pound trades in American terms in the futures market and is shown as GBP/USD. So, if you purchase the EUR/USD at 1.1250, you would receive one unit of the euro (EUR) in exchange for a payment of 1.1250 U.S. dollars (USD). From its inception in 1999 and as stipulated by the Although there is no standards-setting body or ruling organization, the established priority ranking of the major currencies is: For example, EUR/USD is the typical forex market notation for the currency pair consisting of European Union Euros for which the ISO code is EUR being quoted in U.S. Dollar terms for which the ISO code is USD. The total sum is 200% because each currency trade always involves a It is quoted in USD/CHF convention. /content/cmegroup/en/education/courses/introduction-to-fx/understanding-fx-quote-conventions For example, when we refer to the exchange rate of the euro (the currency of the European Union) to the U.S. dollar we quote the relationship, or exchange rate, as EUR/USD.The first currency in the quotation – in this case the euro – is represented by its three-letter symbol, EUR. This is known as the named or base currency.The second currency – in this case the U.S. dollar, shown by its three-letter symbol, USD – is known as the terms or quote currency.When trading FX, the trading action is applied to the base, or first, currency in the currency pair. The spread offered to a retail customer with an account at a brokerage firm, rather than a large international forex Example: consider EUR/USD currency pair traded at a quotation of 1.33 Learn why traders use futures, how to trade futures and what steps you should take to get started.Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market. American terms are currency pairs where the quote convention places the USD in the terms location. The first currency in the pair is the “base currency” and the second is the “quote currency.” This naming convention is the same regardless of the currency pair you’re trading. GBP is the three-letter symbol for the British pound. GBP is the three-letter symbol for the British pound.It’s important for traders to understand that the quote convention for futures may be different than the spot for the currency pairs they wish to trade.On futures execution platforms, all currency futures will be listed using a trading code that includes the instrument, month and year.For example, when trading euro FX futures on CME Globex, the contract code for March 2017 would be 6EH7; 6E is the product code, H is the month code and 7 is the year.

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