At Traderís Way, Prime Online Forex and CFD broker, we provide our clients with streamlined quotes, state of the art trading terminals and the latest trading applications including the option to integrate add on automated scripts. We believe that knowledge is essential when it comes to forex trading and as part of our edu blurbs, hereís a short recap on currency pairs. Traders buy and sell currencies in pairs; in short when a trader purchases one currency, he is simultaneously selling the other.
Example: When you buy AUD/NZD you buy Australian dollars and sell New Zealand dollars.
Currencies in a pair are denoted in a three letter format, the first two letters relates to the country code, as in GB for Great Britain. The last one denotes the particular currency name, so the P in GBP stands for Pound. For more information on currency pairs, exotic currencies, check out Traderís Way.