The world of Forex – Currency Nicknames
Posted - 19 April 2012 by Escape Currency
Most industries have their own “Buzz Words” or lingo; a kind of “in-house” language that serves both as a simplified way of communicating and as a way of feeling part of the clique, one of the lads, or lasses!
The world of Foreign Currency Exchange (forex) is no exception. Traders and those who deal with currencies in their business life, need to know the “nicknames” and industry terminology otherwise they will have a hard time following news, participate in conversation or understand comments of other forex traders and commentators.
So here we have some of the major currencies and their nicknames and their origins.
Great Britain – Pound Sterling GBPThe term “Sterling” is said to have dated back to Anglo-Saxon times, when coins called sterlings were minted from silver; 240 of these sterlings weighed a pound, and large payments came to be made in "pounds of sterlings". There is no real nickname as such for the UK’s Pound Sterling.
It is often shortened to just “Sterling” or “Pounds” and a more informal plural term exists, “Quid”. The origin of this term is not exactly known but, for many years, traders have used this term. For example when seeking a quote for 10 million pounds sterling, they would ask for a price for “10 million pounds” or “10 million quid”.
United States – Dollar USDTwo of the most used nicknames are the "Buck" and the "Greenback". The "Buck" may have originated with the US Colonial fur trade, when buck skins were used like currency, and the "Greenback" nickname is taken from the original note that was printed in black and green on the back side.
Switzerland – Swiss Franc CHFSwitzerland's currency is the Swiss Franc and professional forex traders usually refer to it as a “Swissie”, although there is no real knowledge of why this term came about…. It just did!
New Zealand – NZ Dollar - NZDThe commonly used nickname for the NZD is, not surprisingly, the Kiwi. If you think it has to do with the fruit, you'd be wrong! It derives its name from New Zealand's national icon - a flightless bird called a kiwi - which is pictured on one side of the country's $1 coin.
Canada – Canadian Dollar - CADMuch like the NZD, the nickname for the Canadian Dollar comes from a bird, but a flying one this time! The “Loonie” is derived from the national bird of Canada, the Looney, which is also featured on its’ coinage.
Currency PairingsIn forex, currencies are always traded in “pairs”. This relates to the relative value of one currency, against another. The most traded currency pairs in the world are known as the Majors, these include the US Dollar, Pound Sterling, Japanese Yen, Swiss Franc, Euro, Canadian Dollar and the Canadian Dollar.
Some of these pairs also have nicknames. The pair, GBP/USD, for example, is referred to as a “Cable”. This is derived from the Transatlantic communications cable that runs from Great Britain to the USA.
Tags: currency exchange, currency names, forex, traders, pound sterling, greenback,
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