What is the cable forex

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The slang term “trading the cable” is used by forex traders to refer to an exchange between British pounds and U.S. dollars

U.S. dollars
A greenback is a slang term for U.S. paper dollars. The term originated during the mid-1860s, when these notes were printed in green ink. Congress had limited taxing authority, and used paper currency to help finance the civil war.
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. The word “cable” may refer to the exchange rate between the pound and the dollar, and may also simply refer to the British pound.

What does cable mean in forex trading?

The term is used among forex traders. It can also refer to the British pound sterling. The word “cable” refers to the early telegraph cables that were laid between London and New York and were used to communicate currency quotes and other data.

What is a currency cable?

Cable is a term used among forex traders referring to the exchange rate between the U.S. dollar (USD) and the British pound sterling (GBP).

What is the forex market?

The forex, or foreign exchange, is now a global marketplace for the exchange of nearly all global currencies. It has no headquarters or central location. Currency transactions are conducted electronically between traders around the world, 24 hours a day.

What is a cable in finance?

Key Takeaways The cable refers to the British pound (GBP) as it relates to the U.S. dollar (USD), with the exchange rate typically quoted as GBP/USD. The term cable comes from the telegraph days when the pound and dollar were the most traded currencies.

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What is cable and fiber forex?

If you are trading FX, you have got to know about the Fiber. This is, by far, the most traded FX pair in the world: the EUR/USD. The “Fiber” nickname has two meanings: on one side, it stands as a deviation from the fact that the GBP/USD is called Cable, the Euro being a newer currency.


Why is Gbpusd known as cable?

GBP/USD is referred to as cable because of the deep-sea cables which used to carry buy and sell information between London and New York. This information is now exchanged through more sophisticated means – such as satellites and fibre optic cables – but the name continues to be used by forex traders.


Why is Eurusd called fiber?

EUR/USD of course doesn’t quite have the same romantic history to draw upon that Cable does. So what do traders do? Well, being the funny bunch that they are, they’ve gone and simply ‘upgraded’ the old Cable to a state of the art Fibre Optic line. Hence the nickname Fibre!


What does it mean to buy Usdcad?

USD/CAD is the abbreviation for the U.S. dollar versus Canadian dollar (USD/CAD) currency pair. The quote given for the USD/CAD currency pair tells the reader how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency).


Why is it called the cable?

Key Takeaways The term “cable” comes from the telegraph days when the pound and dollar were the most traded currencies. As of 2020, the GBP is the fourth largest reserve currency in the world, following the yen, euro, and dollar (which comes in the first place).


What is financial market cable?

The slang term “trading the cable” is used by forex traders to refer to an exchange between British pounds and U.S. dollars. The word “cable” may refer to the exchange rate between the pound and the dollar, and may also simply refer to the British pound.


What do you call a professional forex trader?

Forex is short for foreign exchange. Transactions in the forex market are always between a pair of two different currencies. A forex broker may also known be as a retail forex broker or a currency trading broker.


What is Fibre currency?

There are no wood fibers or starch in currency paper. Instead, like high quality stationery, currency paper is composed of a special blend of cotton and linen fibers. The strength comes from raw materials continuously refined until the special feel of the currency is achieved.


Why is USD JPY called Gopher?

USD/JPY is a currency pair consisti… More is a currency pair consisting of the US dollar and the Japanese yen. This pair is known as “the Yen” or the “Gopher”. It shows how many yen (the quote currency) it costs to purchase one US dollar (the base currency).


What is the best time to trade Usdcad?

The most effective USD/CAD trading hours are during the US session, particularly during the overlap between the US and London sessions which starts at 8:00 AM EST (UTC\CMT – 5) and ends at noon. During this period, this currency pair is the most volatile.


How do you read Usdcad?

Reading the USD/CAD Price To put it into perspective, when the price of the USDCAD pair is rising, it means that the USD is strengthening over the value of the Canadian dollar. When the opposite happens, that is, the price of the USD/CAD is falling, the Canadian dollar is increasing in value in comparison to the USD.


Why is CAD so strong?

The price of oil. Oil prices have rebounded to well past pre-pandemic levels and are once again a key factor driving the Canadian dollar. The correlation between oil prices and the Canadian dollar has also returned to pre-pandemic levels. The higher oil prices, the higher the Canadian dollar.


What Is “Cable”?

“Cable” is a slang term for the exchange rate between the U.S. dollar (USD) and the British pound sterling (GBP). The term is used among forex traders. It can also refer to the British pound sterling.


Understanding the Cable

“Cable” only refers to the British pound with reference to its trading against the dollar, typically quoted as GBP/USD.


Dominant Currency Until the Post-World War II Period

The British pound, or pound sterling, is considered the oldest currency still in use. It was the world’s dominant currency for centuries, and thus it was considered the primary reserve currency in which other nations held their excess cash.


Base Currency

In foreign exchange, the base currency is the one against which another currency is compared. When the pound was the world’s dominant currency, it was also the base currency for trading, so a price quote indicated the amount of currency X that needed to be exchanged for the pound.


Examples of How the Cable Has Historically Moved

When charting the GBP/USD, if the rate is rising it means the GBP is performing better than the USD, or the USD is underperforming the GBP. This is because it is taking more and more USD to buy one GBP.


What is the exchange between the British pound and the US dollar called?

Key Takeaways. When the currency pair is the British pound and the U.S. dollar, the exchange may be called “trading the cable.”. The British pound is sometimes known as “the cable,” but only when it is paired with the U.S. dollar.


Is forex a global currency?

Modern Times. The forex, or foreign exchange, is now a global marketplace for the exchange of nearly all global currencies. It has no headquarters or central location. Currency transactions are conducted electronically between traders around the world, 24 hours a day.


What is a CFD on cable?

A contract for difference (CFD) enables you to take a position on cable’s price movements without owning any currency. You can go either long or short on the price of cable – depending on whether you think that the market will rise or fall. The profit or loss to a CFD position on cable is determined by the difference in the currency pair’s price from when you open the contract, to when you close it.


Is forex trading a CFD?

Forex trading via a broker is similar to CFD trading and spread betting. This is because you’re speculating on the price movements of cable without taking ownership of the currencies.


Forex Currency Pair Nicknames: Cable and Fiber?

Sometimes when talking to other forex traders you might hear a reference to a nickname that you don’t understand.


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What Is “Cable”?

  • “Cable” is a slang term for the exchange rate between the U.S. dollar (USD) and the British pound sterling (GBP). The term is used among forextraders. It can also refer to the British pound sterling. The word “cable” refers to the early telegraph cables that were laid between London and New York and were used to communicate currency quotes and othe…

See more on investopedia.com


Understanding The Cable

  • “Cable” only refers to the British pound with reference to its trading against the dollar, typically quoted as GBP/USD. Quotes against other currencies such as the euro or the Japanese yen refer to the pound as sterling (not cable), as in “I need a price in sterling/yen” or, “I think euro/sterling will reboundfrom its current lows.” The currency code for the pound is GBP, which stands for Great B…

See more on investopedia.com


Dominant Currency Until The Post-World War II Period

  • The British pound, or pound sterling, is considered the oldest currency still in use. It was the world’s dominant currency for centuries, and thus it was considered the primary reserve currencyin which other nations held their excess cash. As the British Empire dominated global commerce, the pound dominated international finance. It was legal tenderin most colonies, inclu…

See more on investopedia.com


Base Currency

  • In foreign exchange, the base currencyis the one against which another currency is compared. When the pound was the world’s dominant currency, it was also the base currency for trading, so a price quote indicated the amount of currency X that needed to be exchanged for the pound. It is still the base currency in trades against the U.S. dollar, Canadian dollar (CAD), and Japanese ye…

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Examples of How The Cable Has Historically Moved

  • When chartingthe GBP/USD, if the rate is rising it means the GBP is performing better than the USD, or the USD is underperforming the GBP. This is because it is taking more and more USD to buy one GBP. When the GBP/USD rate is falling, that means it costs less USD to buy one GBP, and therefore the GBP is declining in value relative to the USD. The following chart shows the GBP/U…

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