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

Where is the central location of the forex market?

July 8, 2024 No Comments

A: There is no central location of the foreign exchange market, often referred to as the forex (FX) market. Transactions in the FX market take place in many different forms, 24 hours a day, through different channels all over the globe; existing wherever one currency

Who determines interest rates?

July 8, 2024 No Comments

A: In countries using a centralized banking model, interest rates are determined by their respective central banks. In order to determine the interest rate, a government’s economic observers create a policy that helps ensure stable prices and liquidity. This policy is routinely checked so that

Why does the time value of money assume that a dollar today is worth more than a dollar tomorrow?

July 8, 2024 No Comments

A: The time value of money, or TVM, assumes a dollar in the present is worth more than a dollar in the future because of variables such as inflation and interest rates. Inflation is the general increase in prices, which means that the value of

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

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