In forex trading, a currency pair is bought or sold at an exchange rate that is reflective of the condition of the two economies when compared with each other.
Did you know?
The GBP/USD pair is widely referred to as “cable”. The term dates back to the 19th century, during which the exchange rate between the U.S. dollar and the British Pound was transmitted across the Atlantic via a huge cable that ran across the ocean floor and connected the two countries.
Word of the day
"Financial Times Actuaries 100 Index (FTSE 100) (Footsie)" - An index representing approximately 80% of the market capitalisation of the London Stock Exchange, reflecting the strength of the British economy.
Pips are important because they determine your profits or losses.