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Trading > Lesson 1 > Flashcards

Lesson 1 Flashcards

1
Q

What are the major currencies?

A

USD,
EUR,
JPY,
GBP,
CHF,
AUD,
NZD,
CAD

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2
Q

What are the commodity currencies? Name them

A

AUD,
NZD,
CAD

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3
Q

An ………….. is the relative price of two currencies from two different countries.

A

exchange rate

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4
Q

Or in forex trading terms, assuming you’re an American visiting Japan, you’ve ………. dollars and …………. yen.

A

sold / bought

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5
Q

The foreign exchange market, which is usually known as “……….” or “……,” is the largest financial market in the world.

A

forex / FX

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6
Q

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.

A

retail traders

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7
Q

Some divide the 8 currencies into major currencies & ………………. currencies.

A

commodity

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8
Q

They’re called “…………………….” because they’re the most heavily traded currencies and represent some of the world’s largest economies.

A

major currencies

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9
Q

What is the 3 code for US Dollar

A

USD

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10
Q

What is the 3 code for Euro

A

EUR

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11
Q

What is the 3 code for Yen

A

JPY

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12
Q

What is the 3 code for Pound

A

GBP

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13
Q

What is the 3 code for Franc

A

CHF

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14
Q

What is the 3 code for Canadian Dollar

A

CAD

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15
Q

What is the 3 code for Australian Dollar

A

AUD

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16
Q

What is the 3 code for New Zealand Dollar

A

NZD

17
Q

What is the nickname for US Dollar

A

Buck

18
Q

What is the nickname for Euro

A

Fiber

19
Q

What is the nickname for Yen

A

No Nick Name
Just: Yen

20
Q

What is the nickname for Pound

A

Cable

21
Q

What is the nickname for Franc

A

Swissy

22
Q

What is the nickname for Canadian Dollar

A

Loonie

23
Q

What is the nickname for Australian Dollar

A

Aussie

24
Q

What is the nickname for New Zealand Dollar

A

Kiwi

25
Q

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.

A

FYI

26
Q

There are three categories of currency pairs:

A

The “majors“
The “crosses“
The “exotics“

27
Q

Majors pairs include the …………… paired with other major currencies like the Euro (EUR), Japanese Yen (JPY), British Pound (GBP)

A

US Dollar

28
Q

Minors or Crosses are currency pairs that do not include the US Dollar. Instead, they are made up of other …………………..

A

major currencies

29
Q

Exotics pairs include one major currency paired with the currency of an …………….. or a smaller but still significant …………..

A

emerging economy / market

30
Q

Name 7 Majors currency pairs

A

USD/CAD
USD/CHF
USD/JPY
GBP/USD
EUR/USD
AUD/USD
NZD/USD

31
Q

Out of the three categories of currency pairs majors, crosses, and exotics which one of them has the price move more frequently?

A

Majors

32
Q

Liquidity is used to describe the level of ………….. in the financial market.

A

activity

33
Q

The ……………. are the most liquid in the world.

A

majors

34
Q

In forex, liquidity is based on the number of active traders buying and selling a specific currency pair and the volume being traded.

A

FYI

35
Q

The more frequently traded something is the higher its liquidity.

A

FYI

36
Q

What is the difference between EUR/USD and USD/EUR?

A

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.

Trading (3 decks)

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