Stocks & Commodities V. 25:1 (36-41): Forex Focus by Grace Cheng
Access to foreign exchange trading has opened up exciting trading options for the retail trader. You can now trade alongside corporations and institutions in a highly liquid market that is global, traded around the clock, and highly leveraged. Before jumping into this market, however, we must understand the factors that affect the forex market. With that in mind, STOCKS & COMMODITIES has introduced Forex Focus to better prepare the retail trader to participate in the currency market.
Currency Cross Adventures
Listed below are the seven most liquid US dollar (USD)–involved currency pairs, composed of the eight most-traded currencies in the world, with the first four pairs being the majors, followed by three commodity pairs:
The commodity pairs:
Take a glance at these currency pairs, and you will notice a common currency among them: Yes, the almighty US dollar. That is hardly surprising, given that the United States has the largest economy in the world, and almost everyone anywhere will accept the greenback, ranging from a Persian carpet seller in Iran to a native tour guide in Africa.
Did you know the British pound used to be king during the era of the gold standard? Times have changed, and now the US dollar, without a doubt, is the world’s unofficial reserve currency and is the main currency accumulated as reserves by foreign central banks.