Why is the British pound / U.S. dollar currency pair known as “trading the cable”?

July 8, 2024 No Comments

A: The British pound / U.S. dollar currency pair is one of the oldest and most widely-traded currency pairs in the world. The term cable is a slang term used by forex traders to refer to the exchange rate between the pound and dollar and

Why is the U.S. dollar shown on the top of some currency pairs and on the bottom of others?

July 8, 2024 No Comments

A: All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called the quote or “counterpart” currency. Usually the most dominant currency, in terms of the other currencies against which it trades, is quoted

What is the difference between inflation and stagflation?

July 8, 2024 No Comments

A: Inflation is a term used by economists to define broad increases in prices. Inflation is the rate at which the price of goods and services in an economy increases. Inflation also can be defined as the rate at which purchasing power declines. For example,

What is the difference between LIBID and LIBOR?

July 8, 2024 No Comments

A: Both LIBID and LIBOR are reference rates set by banks in the London interbank market. The London interbank market is a wholesale money market in London where banks exchange currencies either directly or through electronic trading platforms. The acronym LIBID stands for London Interbank

What is the difference between pips, points, and ticks?

July 8, 2024 No Comments

A: Point, tick and pip are terms used to describe price changes in the financial markets. While traders and analysts use all three terms in a similar manner, each is unique in the degree of change it signifies and how it is used in the markets.

What is the name of the currency in New Zealand?

July 8, 2024 No Comments

A: The New Zealand currency is known as the New Zealand dollar. The currency was decimalized in 1967, and divided into 100 parts or cents. Before 1967, the currency was called the New Zealand pound. But since its decimalization, it has been called the New

What is the value of one pip, and why are pips different between currency pairs?

July 8, 2024 No Comments

A: In forex markets, currency trading is conducted most frequently among the U.S. dollar, the Japanese yen, the euro, the British pound and the Canadian dollar. A currency pair such as EUR/USD, for example, represents the relationship between the euro and U.S. dollar. The first

What should I look for when choosing a forex trading platform?

July 8, 2024 No Comments

A: A trading platform is a piece of software that acts as a conduit for information between a trader and a broker. A trading platform provides information such as quotes and charts, and includes an interface for entering orders to be executed by the broker.

What types of accounts are available for forex trading?

July 8, 2024 No Comments

A: There are many different types of forex accounts available to the retail forex trader. Demo accounts are offered by forex brokers as a way to introduce traders to their software and execution methods. After the trader has tried out demo accounts with a few

When did the U.S. start using paper money?

July 8, 2024 No Comments

A: On February 3, 1690, the Massachusetts Bay Colony was said to have issued the first paper money in the U.S. in order to pay for military action against Canada during King William’s War. Massachusetts was a truly pioneering colony when it came to money, as

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