Currencies are categorized into three groups: the majors; the minors; and the exotics.
Summary of the lecture:
- 3 categories of currencies: majors, minors, exotics
- Currencies are shortened to 3 letters. The first two are the country and the last is the currency. USD = U.S. Dollar, JPY = Japanese Yen, etc.
- Currencies have slang names that traders like to use. Buck, Cable, Swissy, Kiwi, Loonie, etc.
- Don’t trade the exotic currencies because the spreads are too large.
- Currencies are traded in pairs, USD/JPY, AUD/USD, etc.
The infographics used in this lecture: