Summary to the earlier publication on Forex operations that take place through the trade in currency pairs.
In Forex, currencies are traded in pairs, i.e., purchased or sold a currency, paying with another, for example, in Colombia, which is known as the price of the dollar, the amount of PESOS paid for one U.S. dollar.
Each currency has an acronym composed of 3 letters, in the case of the Colombian weight is: COP-USD United States dollar, therefore, when we say that the dollar is $1,950 pesos mean that the PAIR USD/COP is worth $1,950.
In general, with a few exceptions, the stronger currency shown left, so the PAIR have always a value greater than 1. Unfortunately the Colombian weight not traded in Forex; follows the main pairs traded on Forex, sorted according to the volume of operations:
USD/JPY: Dollar-Japanese Yen.
GBP/USD: Pound sterling - dollar.
USD/CHF: Dollar-Swiss franc
USD/CAD: Dollar American - Canadian dollar.
USD/AUD: Dollar American - Australian dollar.
USD/NZD: Dollar American - New Zealand dollar.
With the dollar as the currency of reference, make up the 8 major currencies in Forex as: Majors.
There are also other very traded Forex pairs that combine some of the majors:
GBP/JPY: Pound sterling - Yen.
EUR/CHF: Euro-Swiss franc.
EUR/GBP: Euro - pound sterling.