Lesson 1 Flashcards
What are the major currencies?
USD,
EUR,
JPY,
GBP,
CHF,
AUD,
NZD,
CAD
What are the commodity currencies? Name them
AUD,
NZD,
CAD
An ………….. is the relative price of two currencies from two different countries.
exchange rate
Or in forex trading terms, assuming you’re an American visiting Japan, you’ve ………. dollars and …………. yen.
sold / bought
The foreign exchange market, which is usually known as “……….” or “……,” is the largest financial market in the world.
forex / FX
In the FX (foreign exchange) market, ……………… are individual investors who trade currencies with the goal of making a profit from the fluctuations in exchange rates.
retail traders
Some divide the 8 currencies into major currencies & ………………. currencies.
commodity
They’re called “…………………….” because they’re the most heavily traded currencies and represent some of the world’s largest economies.
major currencies
What is the 3 code for US Dollar
USD
What is the 3 code for Euro
EUR
What is the 3 code for Yen
JPY
What is the 3 code for Pound
GBP
What is the 3 code for Franc
CHF
What is the 3 code for Canadian Dollar
CAD
What is the 3 code for Australian Dollar
AUD
What is the 3 code for New Zealand Dollar
NZD
What is the nickname for US Dollar
Buck
What is the nickname for Euro
Fiber
What is the nickname for Yen
No Nick Name
Just: Yen
What is the nickname for Pound
Cable
What is the nickname for Franc
Swissy
What is the nickname for Canadian Dollar
Loonie
What is the nickname for Australian Dollar
Aussie
What is the nickname for New Zealand Dollar
Kiwi
An exchange rate is basically the price of one country’s currency in terms of another country’s currency. Think of it like swapping currencies; if you want to exchange your money for another country’s money, the exchange rate tells you how much of the foreign currency you’ll get for yours. For example, if the exchange rate from dollars to euros is 1.10, it means that 1 dollar will get you 1.10 euros.
FYI
There are three categories of currency pairs:
The “majors“
The “crosses“
The “exotics“
Majors pairs include the …………… paired with other major currencies like the Euro (EUR), Japanese Yen (JPY), British Pound (GBP)
US Dollar
Minors or Crosses are currency pairs that do not include the US Dollar. Instead, they are made up of other …………………..
major currencies
Exotics pairs include one major currency paired with the currency of an …………….. or a smaller but still significant …………..
emerging economy / market
Name 7 Majors currency pairs
USD/CAD
USD/CHF
USD/JPY
GBP/USD
EUR/USD
AUD/USD
NZD/USD
Out of the three categories of currency pairs majors, crosses, and exotics which one of them has the price move more frequently?
Majors
Liquidity is used to describe the level of ………….. in the financial market.
activity
The ……………. are the most liquid in the world.
majors
In forex, liquidity is based on the number of active traders buying and selling a specific currency pair and the volume being traded.
FYI
The more frequently traded something is the higher its liquidity.
FYI
What is the difference between EUR/USD and USD/EUR?
EUR/USD indicates how many US dollars (USD) are needed to buy one euro (EUR), with the euro as the base currency and the dollar as the quote currency. USD/EUR shows how many euros (EUR) are needed to buy one US dollar (USD), with the dollar as the base currency and the euro as the quote currency.
