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A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market.The currency that is used as the reference is called the counter currency, quote currency, or currency [1] and the currency that is quoted in relation is called the base currency or transaction currency.
The value of a pip depends on the currency pair, the exchange rate, and the size of the trade position (usually measured in lots). [5] If the U.S. dollar is the quote currency (the second of the pair), such as with the EUR/USD pair, the pip is fixed at .0001. In this case, the value of one pip is calculated by multiplying the lot size by 0.0001.
The Euro/US Dollar pair, the most popular currency pair traded, has cooled off a bit in September after a strong uptrend in August, as the chart below shows. Where Do The Major Forex Pairs Go From ...
10:1 for commodities other than gold and non-major equity indices; 5:1 for individual equities and other reference values; 2:1 for crypto-currencies. ESMA's major currency pairs comprise any two of the following currencies: the US dollar, the euro, the Japanese yen, the pound sterling, the Canadian dollar or the Swiss franc. [4] All other ...
It is intended to chart the current and historical strength or weakness of a currency based on the closing prices of a recent trading period. It is based on the relative strength index and mathematical decorrelation of 28 cross currency pairs. It shows the relative strength momentum of the selected major currency. (EUR, GBP, AUD, USD, CAD, CHF ...
The foreign exchange market (forex, FX (pronounced "fix"), or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency.
The basic idea behind indicators is "to buy strong currency and to sell weak currency". If X/Y currency pair is up trend, it can be determined whether this happens due to X's strength or Y's weakness. For the calculation of indexes of this kind, major currencies are usually used because they represent up to 90% of the whole forex market volume. [6]
Bilateral exchange rate involves a currency pair, while an effective exchange rate is a weighted average of a basket of foreign currencies, and it can be viewed as an overall measure of the country's external competitiveness. A nominal effective exchange rate (NEER) is weighted with the inverse of the asymptotic trade weights.