The first three letter of the code is represents the stronger currency and the last three represents the other currency. The value between the two currencies is represented by a five-digit number.

For example, if the current value of the GBPUSD = 1.6266, it represents. In the FOREX market, currencies are traded in pairs, where investors and speculators invest on the value of one currency against another. For online trading, these currency pairs are represented by 6 letter codes, representing both currencies. If a trader trades on the value of the British pound against the US dollar, the code used would be GBPUSD.

The darbee in FOREX markets is no different. Basic Terms in FOREX Trading The trading mechanisms of the FOREX market are similar to other major financial markets (such as the stock and commodities market). Here is a short list of some com terminologies used. Nevertheless, there are certain trading terms that are distinct to the FOREX market. The currencies traded in the market are usually paired with the US dollar.

The purpose of investors and speculators in such markets is to make a profit, by buying low and selling high.