What does the word parity, which we normally hear when investing in foreign exchange markets, duvet? What do the terms important, minor and exclusive parity mean?
Parity means the worth of one country’s currency against one more country’s forex.
The currency exchange market, which is able to attain a day-to-day transaction volume of 5.5 trillion dollars on a worldwide scale, attracts buyers thanks to its leverage feature, which presents the knowledge of creating excessive-quantity transactions with low collateral.
Major currency pairs are EURUSD, GBPUSD, USDCHF, USDJPY, AUDUSD, NZDUSD and USDCAD.
All forex pairs are quoted against one currency against one more.
A currency pair consists of up to two currencies traded on the currency exchange market.
There are essential forex pairs and minor/unusual foreign money pairs.