Every industry has their own spoken language. This enables employers and employees to get their job done in a streamlined manner. Forex training is no different in that it also has a coded language. You could get by without knowing some of the terminology, but will that really do you any good? You might read a piece of news about the Loonie and wonder why they are talking about a Canadian bird in a forex piece. You might read another piece about Kiwi, getting confused about fruit and New Zealand Dollars. The fact is you could probably figure out that these are two names for currency, but why work so hard in one or two articles? You have a resource that can express the lingo here and make it easier to communicate and understand forex information.
Forex Training Lingo
Get ready because some of these might make less sense to you than others. For example you have the GBP which is generally known as the pound, but often called the sterling or cable in the forex market. Cable is actually referring to more than just the GBP. It is the name given to the GBP/USD currency pair. If you were reading forex training about the cable, but unaware it was a currency pair things might get a little dicey. The term came about in the 19th century in which the exchange rate was sent via a large cable running along the ocean floor between the U.S. and Britain. It was for telegraphs to ensure the exchange rate of the pair could be traded in the late 1800s. Despite the change in technology the name has lived on.
The U.S. dollar is either referred to as the USD, greenback or buck. Like the pound the greenback is the most common name. Do not get confused by forex training courses that fail to explain everything. The Swiss Franc or Swissie is yet again another dual pairing. CHF are the call letters for the Swiss Franc. You might think that Swissie is just a name for it, but actually this also includes the USD.
Aussie is not hard to figure out, but Kiwi might be. The New Zealand Dollar is also referred to as the Kiwi. Unless you are aware of the flightless bird that is New Zealand’s icon you might be confusing it with the fruit.
Like New Zealand, Canada also uses a bird-like name for their CAD. The Loonie or little dollar as some call it is so named for its bird on the currency.
Non Denominational Forex Training Lingo
Forex training also has words like figure and yard that refer to currency. It is not about the country’s nicknames this time, but words that can connote certain things. Figure, for example, means a round number. If you see 1.2000 then you can call it a figure. Forex training on a yard does not mean a football field. Instead, it means that you have a billion units of a currency. Of course most of us cannot buy a billion, but companies and central banks trade in these large figures.
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