As in many different types of businesses and industries, the Forex (Foreign Exchange) has developed it’s own world of terms and nicknames (sort of speak) among traders in this market arena.
In the real world to outsiders some of the terminology used by professional Forex traders may seem a bit peculiar.
However it has become a virtual language unto those of us that trade currencies on a daily bases so I thought I would share some common examples of currency terminology in the Forex trading industry.
Currency Or Currency Pair Common Terminology
GBP (British Pound) Sterling or Big Ben
CAD (Canadian Dollar) Loonie
USD (U.S. Dollar) Greenback
AUD (Australian Dollar) Aussie
NZD (New Zealand Dollar) Kiwi
EUR/USD (EURO/U.S. Dollar Pair) Euro
GBP/USD (British Pound/U.S. Dollar Pair) Cable
USD/JPY (U.S. Dollar/Japanese Yen Pair) Dollar- Yen or Yen
USD/CHF (U.S. Dollar/Swiss Franc Pair) Dollar-Swiss or Swissy
USD/CAD (U.S, Dollar/Canadian Dollar Pair) Dollar-Canada or Dollar-Cad
Some of the best aspects about foreign exchange trading is the simple focus on the 7 major pairs that most traders take. Unlike stocks or other markets where you have countless companies, trust funds or securities to look at.
The Forex markets allows traders to focus their efforts in an efficient manner rather than dispersing there attention among multiple company stocks, securities and/or indexes etc..
That is a great benefit for us now in an age of increasing information overload. A limited set of trading options can certainly be seen as a great benefit for traders especially those newbie’s out there.
As always, I hope this was helpful and informative to you!
$ Good Trading $
A~