Sunday, August 10, 2008

Major currencies.

Major currencies.

There are five main currencies are traded in by 80%
1 - USD: U.S. Dollar
2 - EUR: Euro
3 - GBP: Pound sterling
4 - JPY: Japanese Yen
5 - CHF: Swiss franc

USD and are traded through the U.S. dollar.
Where they are buying and selling other currencies against the U.S. dollar
That is, when you want to get the sale done on the dollar and buy his work are paid when the U.S. dollar
The circulation of such as currencies most of the large demand around the world
The demand for the currencies of the five previous high, more than any other currency
The currency is writing this way.
EUR / USD = 1.8
The currency symbol, which placed first in the formula called the base currency.
The price is the amount owed from the second currency for one unit of currency basis.
This means that to get the euro must pay 1.8 U.S. dollars and will talk more in this topic in next to God

Other currencies

In addition to the former currency you can buy and sell other currencies such as:
CAD: Canadian dollar
AUD: Australian dollar
The common currency among all previous U.S. dollar as you buy and sell any currency against the U.S. dollar
But you have to wonder should I pay the U.S. dollar in every once bought his work and get it done when I sell
Answer: No
CHF / JPY and you can buy franc and paid interview Yen
So you can buy any currency against any other currency without the need for the U.S. dollar.
Called the currency to be bought or sold against other currencies-U.S. dollar currencies hybrid (CROSES).
The most famous hybrid which currencies are traded in the currency market are:
Euro against the pound sterling EUR / GBP.
Euro against the Japanese yen, EUR / JPY.
Euro against the Swiss franc EUR / CHF.
Pound sterling against the Japanese yen GBP / JPY.
Pound sterling against the Swiss franc GBP / CHF.
But as we mentioned earlier, the vast majority of traders are focusing on the sale and purchase of four major currencies in the first place, and there are those who prefer dealing in currency trading in certain hybrid.
But for beginners they must focus only on major currencies

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