05/01/ · Cable is a term used among forex traders that refers to the exchange rate between the U.S. dollar (USD) and the British pound sterling (GBP) Cable in Forex Trading Forex slang for the Pound / U.S. Dollar (GBP/USD) currency pair. The term "cable" comes from the time when New York and London used to update their GBP/USD rates through cablegram. Current rates for the cable (GPB/USD) Cable (or the cable) is a foreign exchange term used for the GBP/USD currency pair rate (British pound priced in US dollars).. The term cable is a slang term used by forex traders to refer to the exchange rate between the pound and dollar and is also used to simply refer to the British pound itself. The term originated in the midth century, when the exchange rate between the U.S. dollar and Estimated Reading Time: 1 min
Why is the GBP/USD Currency Pair Known as Trading the Cable?
dollar USD and the British pound sterling GBP. 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. Since the pound versus the dollar is one of the most commonly traded currency pairs, this slang term is frequently used, the cable in forex.
The currency code for the pound is GBP, the cable in forex, which stands for Great Britain pound. You may hear someone dealing in the forex market say, "Cable is up today" or, "Cable the cable in forex been trending lower lately. This term cable supposedly derives from the advent of the telegraph in the midth century.
The pound was the dominant currency at the time, and transactions between the pound and dollar were executed via transatlantic cable. Forex traders were sometimes referred to as "cable dealers", although this phrase is no longer commonly used. The British pound, or pound the cable in forex, 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.
As the British Empire dominated global commerce, the pound dominated international finance. It was legal tender in most colonies, including large portions of Africa and Asia. The Empire began to fade following World War I, as the enormous economic cost of the war took a toll on the economy.
With the The cable in forex government heavily in debt to the United States, the dollar began to assume the reserve currency status that the pound previously held, the cable in forex.
By the early part of the 21st century, the dollar was the world's leading reserve currency, followed by the euro. According to the International Monetary Fund IMFthe pound has settled into fourth place at the completion oftrailing the Japanese yen.
In foreign exchangethe 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. It the cable in forex still the base currency in trades against the U. dollar, Canadian dollar CADthe cable in forex, and Japanese yen JPYamong others.
But when the euro EUR started trading on Jan. To find the reverse rate, i. This is because it is taking more and more USD to buy one GBP.
On the right, the rate shown is 1. That means it costs 1, the cable in forex. To find out how many GBP it costs to buy one USD, divide one by 1. National Archives. Accessed May 6, International Monetary Fund. European Union. Your Money.
Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. What Is "Cable"? Understanding the Cable. Dominant Currency Until Post-WWII. Base Currency. Historical Examples, the cable in forex. Key Takeaways "Cable" is a slang term for the exchange rate between the U. The exchange rate between the U. The term "cable" comes from the telegraph days when the pound and dollar were the most traded currencies. As ofthe GBP is the fourth largest reserve currency in the world, following the yen, euro, and dollar which comes in the first place.
The GBP was the primary reserve currency but started to lose ground to the USD following World War I. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government the cable in forex, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.
You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. Advertiser Disclosure ×, the cable in forex. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Related Terms Currency Symbol Definition and Examples A currency symbol is a graphical representation substituted for the name of a currency, which is usually unique to a specific country or region. What Is a Reciprocal Currency? A reciprocal currency is a currency pair that involves the U. dollar USD without the USD serving as the base currency. What Is a Quote Currency? A quote currency, commonly known as "counter currency," is the second currency in both a direct and indirect currency pair.
Key Currency A key currency is a currency with a relatively stable value that is used as a benchmark for international contracts, trade, and foreign exchange. What Does USD Stand for? The USD is the abbreviation for the U. dollar, the official currency of the United States of America and the world's primary reserve currency.
Direct Quote Definition A direct quote is a foreign exchange rate the cable in forex as the domestic currency per unit of the foreign currency. Partner Links. Related Articles. About Us Terms of Use Dictionary Editorial Policy Advertise News Privacy Policy Contact Us Careers California Privacy Notice.
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Forex Price Action Lesson - OTE Fiber 09/22/21
, time: 27:08Definition of "Cable" in Forex Trading
05/01/ · Cable is a term used among forex traders that refers to the exchange rate between the U.S. dollar (USD) and the British pound sterling (GBP) Cable in Forex Trading Forex slang for the Pound / U.S. Dollar (GBP/USD) currency pair. The term "cable" comes from the time when New York and London used to update their GBP/USD rates through cablegram. Current rates for the cable (GPB/USD) Cable (or the cable) is a foreign exchange term used for the GBP/USD currency pair rate (British pound priced in US dollars).. The term cable is a slang term used by forex traders to refer to the exchange rate between the pound and dollar and is also used to simply refer to the British pound itself. The term originated in the midth century, when the exchange rate between the U.S. dollar and Estimated Reading Time: 1 min
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