{"id":3316,"date":"2024-10-23T08:48:11","date_gmt":"2024-10-23T08:48:11","guid":{"rendered":"https:\/\/apex-flow.ai\/?p=3316"},"modified":"2024-10-23T08:48:11","modified_gmt":"2024-10-23T08:48:11","slug":"buying-and-selling-currency-pairs","status":"publish","type":"post","link":"https:\/\/apex-flow.ai\/es\/buying-and-selling-currency-pairs\/","title":{"rendered":"Compra y venta de pares de divisas"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Forex trading is the&nbsp;<em>simultaneous<\/em>&nbsp;buying of one currency and selling of another.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Currencies are traded through a \u201c<a href=\"https:\/\/tradecenterfx.com\/learn-forex\/how-to-choose-a-forex-broker\/\" target=\"_blank\" rel=\"noreferrer noopener\">forex broker<\/a>\u201d or \u201cCFD provider\u201d and are&nbsp;<strong>traded in pairs<\/strong>.&nbsp;Currencies are quoted in relation to&nbsp;<em>another<\/em>&nbsp;currency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, the euro and the U.S. dollar (<strong>EUR\/USD<\/strong>) or the British pound and the Japanese yen (<strong>GBP\/JPY<\/strong>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>When you trade in the forex market, you buy or sell in currency pairs.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/pre-school-tug-of-war.png\" alt=\"Buying and Selling in Currency Pairs\" title=\"Buying and Selling in Currency Pairs\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine each currency pair constantly in a \u201ctug of war\u201d with each currency on its own side of the rope.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An exchange rate is the relative price of two currencies from two different countries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Exchange rates fluctuate based on which currency is stronger at the moment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are three categories of currency pairs:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The \u201c<strong>majors<\/strong>\u201c<\/li>\n\n\n\n<li>The \u201c<strong>crosses<\/strong>\u201c<\/li>\n\n\n\n<li>The \u201c<strong>exotics<\/strong>\u201c<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The major currency pairs&nbsp;<em>always<\/em>&nbsp;include the U.S. dollar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cross-currency pairs do NOT include the U.S. dollar. Crosses that involve any of the major currencies are also known as \u201d minors\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Exotic currency pairs consist of one major currency and one currency from an emerging market (EM).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Major Currency Pairs<\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2011\/04\/eur-usd.png\" alt=\"EUR\/USD Currency Pair\" class=\"wp-image-106947\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The currency pairs listed below are considered the \u201c<strong>majors.<\/strong>\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These pairs all contain the U.S. dollar (<strong>USD<\/strong>) on one side and are the most frequently traded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While there are EIGHT major&nbsp;<em>currencies<\/em>, there are only SEVEN major&nbsp;<em>currency pairs<\/em>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compared to the crosses and exotics, the price moves more frequently with the majors, which provides more trading opportunities.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Currency Pair<\/th><th>Countries<\/th><th>FX Geek Speak<\/th><\/tr><tr><td>EUR\/USD<\/td><td>Eurozone \/ United States<\/td><td>\u201ceuro dollar\u201d<\/td><\/tr><tr><td>USD\/JPY<\/td><td>United States \/ Japan<\/td><td>\u201cdollar yen\u201d<\/td><\/tr><tr><td>GBP\/USD<\/td><td>United Kingdom \/ United States<\/td><td>\u201cpound dollar\u201d<\/td><\/tr><tr><td>USD\/CHF<\/td><td>United States\/ Switzerland<\/td><td>\u201cdollar swissy\u201d<\/td><\/tr><tr><td>USD\/CAD<\/td><td>United States \/ Canada<\/td><td>\u201cdollar loonie\u201d<\/td><\/tr><tr><td>AUD\/USD<\/td><td>Australia \/ United States<\/td><td>\u201caussie dollar\u201d<\/td><\/tr><tr><td>NZD\/USD<\/td><td>New Zealand \/ United States<\/td><td>\u201ckiwi dollar\u201d<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The majors are the most&nbsp;<strong>liquid<\/strong>&nbsp;in the world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Liquidity is used to describe the level of activity in the financial market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In forex, it\u2019s based on the number of active traders buying and selling a specific currency pair and the volume being traded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The more frequently traded something is the higher its liquidity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, more people trade the EUR\/USD currency pair and at higher volumes than the AUD\/USD currency pair.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that EUR\/USD is more liquid than AUD\/USD.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Major Cross-Currency Pairs or Minor Currency Pairs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Currency pairs that include any two of the major currencies&nbsp;<em>except<\/em>&nbsp;the U.S. dollar are known as&nbsp;<strong>cross-currency pairs<\/strong>&nbsp;or simply as the \u201c<strong>crosses<\/strong>.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Major crosses are also known as \u201c<strong>minors<\/strong>.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While not as frequently traded as the majors, the crosses are still pretty liquid and still provide plenty of trading opportunities.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Don\u2019t confuse&nbsp;<em>minor<\/em>&nbsp;currency pairs with the seven&nbsp;<em>major<\/em>&nbsp;currency pairs, all of which&nbsp;<strong><em>include<\/em>&nbsp;the U. S. dollar<\/strong>&nbsp;against one of the six other most liquid currencies in the world.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The most actively traded crosses are derived from the three major non-USD currencies:&nbsp;<strong>EUR<\/strong>,&nbsp;<strong>JPY<\/strong>, and&nbsp;<strong>GBP<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Euro Crosses<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Currency Pair<\/th><th>Countries<\/th><th><strong>FX Geek Speak<\/strong><\/th><\/tr><tr><td>EUR\/CHF<\/td><td>Eurozone \/ Switzerland<\/td><td>\u201ceuro swissy\u201d<\/td><\/tr><tr><td>EUR\/GBP<\/td><td>Eurozone \/ United Kingdom<\/td><td>\u201ceuro pound\u201d<\/td><\/tr><tr><td>EUR\/CAD<\/td><td>Eurozone \/ Canada<\/td><td>\u201ceuro loonie\u201d<\/td><\/tr><tr><td>EUR\/AUD<\/td><td>Eurozone \/ Australia<\/td><td>\u201ceuro aussie\u201d<\/td><\/tr><tr><td>EUR\/NZD<\/td><td>Eurozone \/ New Zealand<\/td><td>\u201ceuro kiwi\u201d<\/td><\/tr><tr><td>EUR\/SEK<\/td><td>Eurozone \/ Sweden<\/td><td>\u201ceuro stockie\u201d<\/td><\/tr><tr><td>EUR\/NOK<\/td><td>Eurozone \/ Norway<\/td><td>\u201ceuro nockie\u201d<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Yen Crosses<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Currency Pair<\/th><th>Countries<\/th><th>FX Geek Speak<\/th><\/tr><tr><td>EUR\/JPY<\/td><td>Eurozone \/ Japan<\/td><td>\u201ceuro yen\u201d or \u201cyuppy\u201d<\/td><\/tr><tr><td>GBP\/JPY<\/td><td>United Kingdom \/ Japan<\/td><td>\u201cpound yen\u201d or \u201cguppy\u201d<\/td><\/tr><tr><td>CHF\/JPY<\/td><td>Switzerland \/ Japan<\/td><td>\u201cswissy yen\u201d<\/td><\/tr><tr><td>CAD\/JPY<\/td><td>Canada \/ Japan<\/td><td>\u201cloonie yen\u201d<\/td><\/tr><tr><td>AUD\/JPY<\/td><td>Australia \/ Japan<\/td><td>\u201caussie yen\u201d<\/td><\/tr><tr><td>NZD\/JPY<\/td><td>New Zealand \/ Japan<\/td><td>\u201ckiwi yen\u201d<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Pound Crosses<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Pair<\/th><th>Countries<\/th><th>FX Geek Speak<\/th><\/tr><tr><td>GBP\/CHF<\/td><td>United Kingdom \/ Switzerland<\/td><td>\u201cpound swissy\u201d<\/td><\/tr><tr><td>GBP\/AUD<\/td><td>United Kingdom \/ Australia<\/td><td>\u201cpound aussie\u201d<\/td><\/tr><tr><td>GBP\/CAD<\/td><td>United Kingdom \/ Canada<\/td><td>\u201cpound loonie\u201d<\/td><\/tr><tr><td>GBP\/NZD<\/td><td>United Kingdom \/ New Zealand<\/td><td>\u201cpound kiwi\u201d<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Other Crosses<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Pair<\/th><th>Countries<\/th><th>FX Geek Speak<\/th><\/tr><tr><td>AUD\/CHF<\/td><td>Australia \/ Switzerland<\/td><td>\u201caussie swissy\u201d<\/td><\/tr><tr><td>AUD\/CAD<\/td><td>Australia \/ Canada<\/td><td>\u201caussie loonie\u201d<\/td><\/tr><tr><td>AUD\/NZD<\/td><td>Australia \/ New Zealand<\/td><td>\u201caussie kiwi\u201d<\/td><\/tr><tr><td>CAD\/CHF<\/td><td>Canada \/ Switzerland<\/td><td>\u201cloonie swissy\u201d<\/td><\/tr><tr><td>NZD\/CHF<\/td><td>New Zealand \/ Switzerland<\/td><td>\u201ckiwi swissy\u201d<\/td><\/tr><tr><td>NZD\/CAD<\/td><td>New Zealand \/ Canada<\/td><td>\u201ckiwi loonie\u201d<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Exotic Currency Pairs<\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/pre-school-exotic-belly-dancers.png\" alt=\"Exotic Currency Pairs\" title=\"Exotic Currency Pairs\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">No, exotic pairs are not exotic belly dancers who happen to be twins.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An&nbsp;<strong>exotic currency<\/strong>&nbsp;is a currency from countries with&nbsp;developing or emerging markets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Exotic currency pairs<\/strong>&nbsp;are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico, Chile, Turkey, or Hungary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Basically, an exotic currency pair includes&nbsp;<strong>one major currency alongside an exotic currency.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The chart below contains a few examples of exotic currency pairs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wanna take a shot at guessing what those other currency symbols stand for?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on your forex broker, you may see the following exotic currency pairs so it\u2019s good to know what they are.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep in mind that these pairs aren\u2019t as heavily traded as the \u201cmajors\u201d or \u201ccrosses,\u201d so the transaction costs associated with trading these pairs are usually bigger.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Currency Pair<\/th><th>Countries<\/th><th>FX Geek Speak<\/th><\/tr><tr><td>USD\/BRL<\/td><td>United States \/ Brazil<\/td><td>\u201cdollar real\u201d<\/td><\/tr><tr><td>USD\/HKD<\/td><td>United States \/ Hong Kong<\/td><td><\/td><\/tr><tr><td>USD\/SAR<\/td><td>United States \/ Saudi Arabia<\/td><td>\u201cdollar riyal\u201d<\/td><\/tr><tr><td>USD\/SGD<\/td><td>United States \/ Singapore<\/td><td>\u201cdollar sing\u201d<\/td><\/tr><tr><td>USD\/ZAR<\/td><td>United States \/ South Africa<\/td><td>\u201cdollar rand\u201d<\/td><\/tr><tr><td>USD\/THB<\/td><td>United States \/ Thailand<\/td><td>\u201cdollar baht\u201d<\/td><\/tr><tr><td>USD\/MXN<\/td><td>United States \/ Mexico<\/td><td>\u201cdollar mex\u201d<\/td><\/tr><tr><td>USD\/RUB<\/td><td>United States \/ Russia<\/td><td>\u201cdollar ruble\u201d or \u201cBarney\u201d<\/td><\/tr><tr><td>USD\/PLN<\/td><td>United States \/ Poland<\/td><td>\u201cdollar zloty\u201d<\/td><\/tr><tr><td>USD\/CLP<\/td><td>United States\/ Chile<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s not unusual to see spreads that are two or three times bigger than that of EUR\/USD or USD\/JPY.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the overall lower degree of liquidity, exotic currency pairs tend to be far more sensitive to economic and geopolitical events.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a political scandal or unexpected election results can cause an exotic pair\u2019s exchange rate to swing violently.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So if you want to trade exotics currency pairs, remember to factor this into your decision.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For those of y\u2019all who are really mesmerized by exotics, here\u2019s a more comprehensive list.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Currency Code<\/th><th>Country<\/th><th>Currency Code<\/th><th>Country<\/th><\/tr><tr><td>AED<\/td><td>UAE Dirham<\/td><td>ARS<\/td><td>Argentinean Peso<\/td><\/tr><tr><td>AFN<\/td><td>Afghanistan Afghani<\/td><td>GEL<\/td><td>Georgian Lari<\/td><\/tr><tr><td>MYR<\/td><td>Malaysian Ringgit<\/td><td>AMD<\/td><td>Armenian Dram<\/td><\/tr><tr><td>GYD<\/td><td>Guyanese Dollar<\/td><td>MZN<\/td><td>Mozambique new Metical<\/td><\/tr><tr><td>AWG<\/td><td>Aruban Florin<\/td><td>IDR<\/td><td>Indonesian Rupiah<\/td><\/tr><tr><td>OMR<\/td><td>Omani Rial<\/td><td>AZN<\/td><td>Azerbaijan New Manat<\/td><\/tr><tr><td>IQD<\/td><td>Iraqi Dinar<\/td><td>QAR<\/td><td>Qatari Rial<\/td><\/tr><tr><td>BHD<\/td><td>Bahraini Dinar<\/td><td>IRR<\/td><td>Iranian Rial<\/td><\/tr><tr><td>SLL<\/td><td>Sierra Leone Leone<\/td><td>BWP<\/td><td>Botswana Pula<\/td><\/tr><tr><td>JOD<\/td><td>Jordanian Dinar<\/td><td>TJS<\/td><td>Tajikistani Somoni<\/td><\/tr><tr><td>BYR<\/td><td>Belarusian Ruble<\/td><td>KGS<\/td><td>Kyrgyzstani Som<\/td><\/tr><tr><td>TMT<\/td><td>Turkmenistan new Manat<\/td><td>CDF<\/td><td>Congolese Franc<\/td><\/tr><tr><td>LBP<\/td><td>Lebanese Pound<\/td><td>TZS<\/td><td>Tanzanian Schilling<\/td><\/tr><tr><td>DZD<\/td><td>Algerian Dinar<\/td><td>LRD<\/td><td>Liberian Dollar<\/td><\/tr><tr><td>UZS<\/td><td>Uzbekistan Som<\/td><td>EGP<\/td><td>Egyptian Pound<\/td><\/tr><tr><td>MAD<\/td><td>Moroccan Dirham<\/td><td>WST<\/td><td>Samoan Tala<\/td><\/tr><tr><td>EEK<\/td><td>Estonian Kroon<\/td><td>MNT<\/td><td>Mongolian Tugrik<\/td><\/tr><tr><td>MWK<\/td><td>Malawi Kwacha<\/td><td>ETB<\/td><td>Ethiopian Birr<\/td><\/tr><tr><td>THB<\/td><td>Thai Baht<\/td><td>TRY<\/td><td>New Turkish Lira<\/td><\/tr><tr><td>ZAR<\/td><td>South African Rand<\/td><td>ZWD<\/td><td>Zimbabwe Dollar<\/td><\/tr><tr><td>BRL<\/td><td>Brazilian Real<\/td><td>CLP<\/td><td>Chilean Peso<\/td><\/tr><tr><td>CNY<\/td><td>Chinese Yuan Renminbi<\/td><td>CZK<\/td><td>Czech Koruna<\/td><\/tr><tr><td>HKD<\/td><td>Hong Kong Dollar<\/td><td>HUF<\/td><td>Hungarian Forint<\/td><\/tr><tr><td>ILS<\/td><td>Israeli Shekel<\/td><td>INR<\/td><td>Indian Rupee<\/td><\/tr><tr><td>ISK<\/td><td>Icelandic Krona<\/td><td>KRW<\/td><td>South Korean Won<\/td><\/tr><tr><td>KWD<\/td><td>Kuwaiti Dinar<\/td><td>MXN<\/td><td>Mexican Peso<\/td><\/tr><tr><td>PHP<\/td><td>Philippine Peso<\/td><td>PKR<\/td><td>Pakistani Rupee<\/td><\/tr><tr><td>PLN<\/td><td>Polish Zloty<\/td><td>RUB<\/td><td>Russian Ruble<\/td><\/tr><tr><td>SAR<\/td><td>Saudi Arabian Riyal<\/td><td>SGD<\/td><td>Singaporean Dollar<\/td><\/tr><tr><td>TWD<\/td><td>Taiwanese Dollar<\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>DID YOU KNOW?<\/strong>&nbsp;There are&nbsp;<strong>180 legal currencies<\/strong>&nbsp;in the world, as recognized by the United Nations.&nbsp; That\u2019s a lot of potential currency pairs! Unfortunately, not all of them are readable. Forex brokers tend to offer traders up to 70 currency pairs.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Aside from the three main categories of currency pairs, there are other \u201cgroups\u201d of currencies that are thrown around in the FX world that you should be aware of.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">G10 Currencies<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The G10 currencies are ten of the most heavily traded currencies in the world, which are also ten of the world\u2019s most liquid currencies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traders regularly buy and sell them in an open market with minimal impact on their own international exchange rates.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Country<\/th><th>Currency Name<\/th><th>Currency Code<\/th><\/tr><tr><td>United States<\/td><td>dollar<\/td><td>USD<\/td><\/tr><tr><td>European Union<\/td><td>euro<\/td><td>EUR<\/td><\/tr><tr><td>Reino Unido<\/td><td>pound<\/td><td>GBP<\/td><\/tr><tr><td>Jap\u00f3n<\/td><td>yen<\/td><td>JPY<\/td><\/tr><tr><td>Australia<\/td><td>dollar<\/td><td>AUD<\/td><\/tr><tr><td>Nueva Zelanda<\/td><td>dollar<\/td><td>NZD<\/td><\/tr><tr><td>Canad\u00e1<\/td><td>dollar<\/td><td>CAD<\/td><\/tr><tr><td>Suiza<\/td><td>franc<\/td><td>CHF<\/td><\/tr><tr><td>Norway<\/td><td>krone<\/td><td>NOK<\/td><\/tr><tr><td>Sweden<\/td><td>krona<\/td><td>SEK<\/td><\/tr><tr><td>Denmark<\/td><td>krone<\/td><td>DKK<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Scandies<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Scandinavia is a subregion in Northern Europe, with strong historical, cultural, and linguistic ties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The term \u201c<strong>Scandinavia<\/strong>\u201d in local usage covers the three kingdoms of&nbsp;<strong>Denmark, Norway, and Sweden.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Together, their currencies are known as the \u201c<strong>Scandies<\/strong>\u201c.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Back in the day, Denmark and Sweden established the&nbsp;<a href=\"https:\/\/en.wikipedia.org\/wiki\/Scandinavian_Monetary_Union\" target=\"_blank\" rel=\"noreferrer noopener\">Scandinavian Monetary Union<\/a>&nbsp;to merge their currencies to a gold standard. Norway joined later.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This meant that these countries now had one currency, with the same monetary value, with the exception that each of these countries minted its own coins.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But then World War I happened, the gold standard was abandoned and the Scandinavian Monetary Union disbanded.&nbsp; These countries decided to keep the currency, even if the values were separate from one another. And this remains the state of things.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you notice their currency names, they all look similar. That\u2019s because the word \u201ckrone or krona\u201d literally means \u201ccrown\u201d, and the differences in spelling of the name represent the differences between the North Germanic languages.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Crown currencies. What a cool name huh?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I don\u2019t know about you, but saying \u201cHook me up with some crowns yo.\u201d sounds way cooler than \u201cHook me up with some dollahs yo.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Country<\/th><th>Currency Name<\/th><th>Currency Code<\/th><\/tr><tr><td>Denmark<\/td><td>krone<\/td><td>DKK<\/td><\/tr><tr><td>Sweden<\/td><td>krona<\/td><td>SEK<\/td><\/tr><tr><td>Norway<\/td><td>krone<\/td><td>NOK<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">SEK and NOK also have cool nicknames, \u201c<strong>Stockie<\/strong>\u201d and \u201c<strong>Nokie<\/strong>\u201c.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So when paired with the U.S. dollar,&nbsp; USD\/SEK is read \u201cdollar stockie\u201d&nbsp; and USD\/NOK is read \u201cdollar nockie\u201d.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>CEE Currencies<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">\u201c<strong>CEE<\/strong>\u201d stands for&nbsp;<strong>Central and Eastern Europe<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Central and Eastern Europe is a term encompassing the countries in&nbsp;<strong>Central Europe,&nbsp;<\/strong>&nbsp;the&nbsp;<strong>Baltics<\/strong>,<strong>&nbsp;Eastern Europe<\/strong>, and&nbsp;<strong>Southeast Europe<\/strong>&nbsp;(the Balkans), usually meaning former communist states from the&nbsp;<strong>Eastern Bloc<\/strong>&nbsp;(Warsaw Pact) in Europe.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Central and Eastern European Countries (CEECs)<\/strong>&nbsp;is an OECD term for the group of countries comprising Albania, Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, the Slovak Republic, Slovenia, and the three Baltic States: Estonia, Latvia, and Lithuania.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regarding the FX market, there are four main CEE currencies to be aware of.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Country<\/th><th>Currency Name<\/th><th>Currency Code<\/th><\/tr><tr><td>Hungary<\/td><td>forint<\/td><td>HUF<\/td><\/tr><tr><td>Czech Republic<\/td><td>koruna<\/td><td>CZK<\/td><\/tr><tr><td>Poland<\/td><td>zloty<\/td><td>PLN<\/td><\/tr><tr><td>Romania<\/td><td>leu<\/td><td>RON<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>BRIICS<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>BRIICS<\/strong>&nbsp;is the acronym coined for the association of six major emerging national economies: Brazil, Russia, India, Indonesia, China, and South Africa.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Originally the first four were grouped as \u201c<strong>BRIC<\/strong>\u201d (or \u201cthe BRICs\u201d). BRICs was a term created by Goldman Sachs to name today\u2019s new high-growth emerging economies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">BRIICS is the term created by the&nbsp;<a href=\"https:\/\/en.wikipedia.org\/wiki\/OECD\" target=\"_blank\" rel=\"noreferrer noopener\">OECD<\/a>, when it&nbsp;added Indonesia and South Africa.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Country<\/th><th>Currency Name<\/th><th>Currency Code<\/th><\/tr><tr><td>Brazil<\/td><td>real<\/td><td>BRL<\/td><\/tr><tr><td>Russia<\/td><td>ruble<\/td><td>RUB<\/td><\/tr><tr><td>India<\/td><td>rupee<\/td><td>INR<\/td><\/tr><tr><td>Indonesia<\/td><td>rupiah<\/td><td>IDR<\/td><\/tr><tr><td>Porcelana<\/td><td>yuan<\/td><td>CNY<\/td><\/tr><tr><td>South Africa<\/td><td>rand<\/td><td>ZAR<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Summary<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Whew! That was a lot of information on currencies but you just raised your FX IQ points!\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s summarize what you\u2019ve learned in a series of questions:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is a currency pair in forex?<\/strong><br>A currency pair is a pairing of currencies where the value of one is relative to the other. For example, GBP\/USD is the value of the British pound relative to the U.S. dollar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What are the major currency pairs?<\/strong><br>Major currency pairs (\u201cmajors\u201d) are those that include the U.S. dollar and are the most frequently traded. There are seven of them: EUR\/USD, USD\/JPY, GBP\/USD, USD\/CAD, USD\/CHF, AUD\/USD, and NZD\/USD.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What are the currency crosses?<\/strong><br>Currency crosses (\u201ccrosses\u201d) are the more frequently traded currencies that do NOT include the U.S. dollar in their pairing. Crosses include EUR\/GBP, EUR\/CAD, GBP\/JPY, EUR\/CHF, EUR\/JPY, etc.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How many currency pairs exist?<\/strong><br>There are HUNDREDS of currency pairs in existence but not all can be traded in the FX market. The United Nations currently recognizes 180 currencies. If you were to pair each currency up with another, it\u2019s a lot.<\/p>","protected":false},"excerpt":{"rendered":"<p>Forex trading is the&nbsp;simultaneous&nbsp;buying of one currency and selling of another. Currencies are traded through a \u201cforex broker\u201d or \u201cCFD provider\u201d and are&nbsp;traded in pairs.&nbsp;Currencies are quoted in relation to&nbsp;another&nbsp;currency. For example, the euro and the U.S. dollar (EUR\/USD) or the British pound and the Japanese yen (GBP\/JPY). When you trade in the forex market, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,42],"tags":[],"class_list":["post-3316","post","type-post","status-publish","format-standard","hentry","category-preschool","category-what-is-forex"],"_links":{"self":[{"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/posts\/3316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/comments?post=3316"}],"version-history":[{"count":1,"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/posts\/3316\/revisions"}],"predecessor-version":[{"id":3317,"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/posts\/3316\/revisions\/3317"}],"wp:attachment":[{"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/media?parent=3316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/categories?post=3316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apex-flow.ai\/es\/wp-json\/wp\/v2\/tags?post=3316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}