This site has organized a list of 304 foreign exchange terms before: and is divided into “foreign exchange common terms what, after reading this article you will understand! (above)” and “foreign exchange common terms what, after reading this article you will understand! (below)”, but the terminology is too much, not suitable for want to quickly foreign exchange introduction of friends.
So today I’ve compiled 20 of the most commonly used forex terms to help you get the basics right.
1. Foreign exchange: refers to foreign currency, including banknotes, coins, etc.
Foreign currency securities, including government bonds, Treasury bonds, corporate bonds, stocks, coupons, etc.
Foreign exchange is some kind of foreign currency or foreign currency assets, but not all non-domestic currencies can be considered foreign exchange, only those foreign currencies with convertibility can be called foreign exchange.
2. Major and minor currencies: The eight most commonly used currencies in foreign exchange trading (USD USD, EUR EUR, JPY yen, GBP pound, CHF Swiss franc, CAD Canadian dollar, AUD Australian dollar, NZD New Zealand New Zealand dollar) are known as major currencies, which are the most liquid and most commonly used.
All other currencies are called secondary currencies.
3. Currency pairs: The foreign exchange market must be in the form of currency pairs. The value of one currency is always based on another currency.
In a pair of currencies, the former currency is the base currency (the base currency) and the latter is the denomination currency (the relative currency).
For example, euro /US dollar (EUR/USD), pound /US dollar (GBP/USD), we often omit the term currency pair in practical communication, but we should know that the object of foreign exchange transaction is currency pair.
4. 11 common currency pairs: Euro/dollar (EUR/USD), dollar/yen (USD/JPY),
