How Much is a Currency Pair?

Jul.17.2013

-
-

The next thing you pay attention to after picking an item to buy at a grocery store, is its price. Same thing happens when you attend a forex party and pick a currency pair. You want to know how much each pair is worth. In other words their price shows their movements on the dance floor!Every move that an international currency pair makes at a party, is showed in numbers. It doesn’t take a genius to figure out that the number, is the price of the pair. Don’t worry, we are certainly not in the business of trading women. You are still learning how to trade currencies. We are simply trying to show you how exchange rates work.

Okay, let’s get to business. Take a look at the following geeky statement announced by a currency analyst (me):

What does it tell us? It says that 1 Euro can buy about 1.31 US dollars. Meaning we would have to pay 131 US dollars to buy 100 Euros.

Now, take a look at this:

This is saying that 1 dollar can buy about 88 units of the Japanese currency.

Trick

How do you read the price of this apple in a grocery store?

You would probably say:

One apple is 1.50 dollars.

The simple logic behind this, is filling in the brackets in the sentence below:

One [object] is [price] [currency]

The same thing happens in buying currencies. The only difference is that in forex trading, you are not buying an object with your dollars or whatever currency that you have. You are buying another currency.

In order to easily read the prices, you can remember this phrase, fill in the brackets, and pretend that you are a psychic who can read the hands of any currency pair. In the magical formula above, just replace [object] with [first quoted currency].

One [1st currency] is [price] [2nd currency]

So when you see:

EUR/USD = 1.3125,

it is exactly as if we write:

Apple/USD =1.50

Fill in the brackets:

One [apple] is [1.50] [dollars]

One [Euro] is [1.3125] [dollars]

One euro is 1.3125 dollars.

That’s it. The secret is out. Now you can easily impress your date by bringing up a currency chart on your mobile phone web browser, and show him/her how to read the currency pairs: Not only I am sexy, but also I’m smart, and I know it.

Just to spice it up, don't be afraid to have LMAO’s “I’m sexy and I know it” on the background

おいくら？

スーパーで商品を選んだ後、次に気にしちゃうのはその価格よね。同じことがFXパーティーに出席して、通貨ペアを選ぶときにも起こります。それぞれの通貨がどのくらいの値段なのか知りたいでしょ？言い換えると、価格がダンスフロアでの彼らの動きを示してるってこと！

さて、ここからが本題。次の文章を見てみて。

「ユーロー/ドルの取引価格は1.3125」

これはどういう意味でしょう？これは、１ユーロは1.31ドルで買うことができるということ。つまり、私たちは131ドルを使って100ユーロを買うことができる。

では、次にこれ：

「ドル/円の取引価格は88.34」

これは、1ドルを88円で買うことができるという意味です。

ネタばらし

このりんごの値段はなんて読んだらよいでしょう？

「りんごはひとつ1.5ドル」

「（ひとつの）［物］は［価格］［通貨］です。」

１つの［物］は［価格］［通貨］

１つの［第一通貨］は［価格］［第ニ通貨］

つまり、

「ユーロ/ドル＝1.3125」

っていうのも、これとまったく一緒。

「りんご/ドル＝1.50」

１つの[リンゴ]は[1.50][ドル]

1[ユーロ]は[1.3125][ドル]

1ユーロは1.3125ドル。

おしまい。バッチリわかった？今度のデートでは携帯かパソコンかで為替チャートを見せながら、彼に読み方教えてあげてね。カワイイだけじゃなくて、スマートで賢いアタシ。知ってた。

LMFOの歌にも”I’m sexy and I know it(私はセクシーで、それを自分でも知っている)”ってあるじゃない？BGMに流しながらするといいかもね。