![]() For practical reasons, Lydian currency took on the form of a round coin, which became the first ever standardized unit of currency. The first "official" currency was minted in the seventh century BC by King Alyattes of Lydia in modern-day Turkey. Some examples include coins, barley, gold, silver, squirrel pelts, 8-ton carved limestone rocks, salt, knives, cowrie shells, stamps, potato mashers, peppercorn, tea bricks, and cheese.Īs history has shown, anything that a group of people in an economy attaches value to can be used as currency. Throughout history, currency has taken many different forms. Before this, it is assumed that bartering, which is the exchange of goods and services without the use of money, was likely used. What is Currency?Ĭurrency is a universal medium of exchange for goods and services in an economy, and it is believed to have been used as such dating back at least 3,000 years. The USD in a currency pair with any of the others is known as a major currency pair. dollar (USD), Euro (EUR), Japanese yen (JPY), British pound (GBP), Australian dollar (AUD), Canadian dollar (CAD), and the Swiss franc (CHF). Major Currencies-This refers to a short list of the most traded currencies, which generally stay the same year-to-year. Interbank (bank-to-bank) Rate-This is the wholesale exchange rate that banks use between themselves. The first currency in a currency pair is called the base currency, while the second is called the quote currency. A pip is sometimes called a point.Ĭurrency Pair-A quote of the relative value of one currency unit against another currency unit. For example, 3 pips are the difference between the currency quote of EUR/USD 1.2800/1.2803. Pip-A pip is the smallest unit of value in a bid-ask spread. Some call this profit a fee or commission. As financial middlemen, most will set exchange rates of their own at bid-ask spreads that return a percentage as profit for doing business. Real-world currency exchanges with brokers, banks, or businesses typically do not follow precise market rates. Theoretically, buyers want the smallest possible spreads, while sellers want the highest spreads. The forex is able to facilitate the receipt or payment of units of currency that are equal in value.īid Price-The price that a buyer is willing to pay for a unit of currency.Īsk Price-The price that a seller is willing to accept for a unit of currency.īid-Ask Spread-The difference between the bid and ask price. This market is a necessity because one unit of currency very rarely equals exactly one unit of another currency. ![]() All information included in this page is for the customers' benefit and is not for sharing and/or redistributing to third parties, and copying or reprocessing for these purposes is strictly prohibited.Below is a short list of some of the important terms pertinent to foreign currency exchange.Įxchange Rate-The value of one currency expressed in terms of another.įorex-The foreign exchange market (forex) is a global, decentralized, over-the-counter market for the trading of currencies and is the largest market in the world (followed by the credit market). ![]() S&P 500, NYMEX WTI Crude Future and COMEX Gold future are from CME Group.and each information provider are not responsible for any losses due to intermittence of information, defect, error, omission or any other reasons that arise from use of this page. ![]() Please make investment decisions at your own risk. SMBC Trust Bank Ltd., is not responsible for the accuracy, integrity and the timeliness of the information. This chart is provided solely for reference and is not intended for solicitation of investment. All the data on this page are using past data and do not guarantee future investment performances.Please note that the data is not distributed on Saturday, Sunday and Holidays or in the case of any urgent system maintenance / failure cases. All the data on this page are delayed by at least 10 minutes for Foreign Currency Rates and Indices are based on the closing price.Please check the rates displayed on the transaction screen via online banking upon actual transaction. The foreign currency rates on this page are not applicable for transactions. Please note that all the data on this page are provided solely for reference.
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