FINOSUTRA

What are major, minor and exotic currency pairs in derivative market. The most traded currency pairs in the world are called the Majors. The list includes following currencies: Euro (EUR), US Dollar (USD), Japanese Yen (JPY), Pound Sterling (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), and the Swiss Franc (CHF).  https://finosutra.blogspot.com/2020/04/derivative-market-ka-gyan.html Unlike any other traded asset class, the most significant part of currency market is the concept of currency pairs. In currency market, while initiating a trade you buy one currency and sell another currency. Therefore same currency will have very different value against every other currency. For example, same USD is valued at say 45 against INR and say 82 against JPY. This peculiarity makes currency market interesting and relatively complex. For major currency pairs, economic development in each of the underlying country would impact value of each of the currency, although in varying ...

Introduction to Currency Markets /  Introduction to  Foreign Currency Markets What is  Currency Markets The current currency rate mechanism has evolved over thousands of years of the world community trying with various mechanism of facilitating the trade of goods and services. Initially, the trading of goods and services was by barter system where in goods were exchanged for each other. For example, a farmer would exchange wheat grown on his farmland with cotton with another farmer. Such system had its difficulties primarily because of non-divisibility of certain goods, cost in transporting such goods for trading and difficulty in valuing of services. https://finosutra.blogspot.com/2020/05/definitionofsecuritiesandderivativesasp.html Currency Market  For example, how does a dairy farmer exchange his cattle for few liters of edible oil or one kilogram of salt? The farmer has no way to divide the cattle! Similarly, suppose wheat is grown in one part of a c...