forex

Know Your Lingo

The Forex market has it’s own little language of codes and special words to make things easier and quicker yet still have everybody being able to understand the codes.

If you are thinking about taking a stab at the Forex market it is important to learn this language first or you may find yourself in over your head. For example, each countries currency that is traded on the market have their own unique three letter code. The code for the US dollar is USD, euro is EUR, the Swiss frank is coded CHF, the Japanese yen is coded JPY and the British pound is coded GBP.

Two of the codes combined represents a combination of the more expensive currency listed first with the second currency shown in units per units of the first one. For example, USD combined with CHF would stand for the number of Swiss Franks per unit or per dollar of USD.

There are many other codes that you should research and be aware of before you begin your trading so you are not caught not knowing something and making a bad decision.