ISO (International Organization for Standardization) Established in 1947, ISO established a standard for country and currency pair abbreviations. Since foreign currencies are quoted in terms of value of one currency against another, a currency pair consists of an acronym for both currencies, separated by a slash "/".
Pips Market increments are measured in PIPs, or Percentage in Point. A pip is the last digit in the value of a currency pair; 1.3294, 115.13 etc. All currency pairs, except for the Japanese Yen, have 4 decimal places. The Yen crosses only have 2 decimal places.
For example, let's assume a trader buys 1 standard lot of GBP/USD. The current market rate is 1.9615. Essentially this trader is buying EU 100,000 in exchange for $196,150. Again, for examples sake, assume the market rate rose 15 PIPs to 1.9630 and the trader liquidates the position. The same Bu 100,000 is now worth $196,300, the trader realizing a $150 profit.
Majors Some currency pairs are traded more heavily than others. The currency pairs that have the most volume consist of the "majors". While it can be debated which currency pairs are considered a major, it can be widely agreed upon that the following 6 pairs are: |
JMI Brokers is a Financial Service Provider Company registered, authorized and holds a Principals license from Vanuatu Financial Services Commission (VFSC) as “Dealers in Securities” to scarry on the business of dealing in securities under license number 15010
"Securities" means (as from the 2012 amendment) - (a) shares in the share capital of a corporation; or (b) an instrument that creates and acknowledges the indebt - securities that is issued by a corporation or a public office including: (i) debentures; or (ii) debenture stock; or (iii) loan stock; or (iv) bonds; or (v) certifications of deposit; or (c) a right, despite whether or not conferred by warrant, to subscribe for shares or debt securities; or (d) a right under a depositary receipt; or (e) an option to acquire or dispose of any security falling within any other provision of this Act; or (f) a right under a contract for the acquisition or disposal of the relevant securities under which the delivery is to be made at a future date and at a price agreed when the contract is made in accordance with the terms of that contract; or (g) the proceeds of Foreign Exchange; or FOREX (h) the proceeds of precious metals; or (i) the proceeds of commodities.
High Risk Investment Warning: Trading foreign exchange and/or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by JMI Brokers you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. JMI Brokers provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. JMI Brokers recommends you seek advice from a separate financial advisor.
All opinions, news, analysis, prices or other information contained on this website are provided as general market commentary and does not constitute investment advice, nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other financial instrument.
Copyright © JMI Brokers 2017. All right reserved.
