A:

The British pound / U.S. dollar currency pair is one of the oldest and most widely-traded currency pairs in the world. 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 dates its origins to the 19th century. In the 1800s, the exchange rate between the U.S. dollar and British pound was transmitted across the Atlantic by a large cable that ran across the ocean floor between the two countries. Since that time the exchange rate has been referred to as the cable.

To learn more, read Forex Currencies: The GBP/USD.

This question was answered by Lovey Grewal.

RELATED FAQS
  1. Why the British Pound Is Stronger Than the U.S. Dollar

    Learn why the British pound is stronger than the U.S. dollar, despite the U.S. economy being larger than that of Britain ... Read Answer >>
  2. In forex, what are the commodity pairs?

    In forex, the commodity pairs consist of the heavily-traded currency pairs and contain the Canadian, Australian and New Zealand ... Read Answer >>
  3. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom ...

    All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called ... Read Answer >>
  4. How is the value of a pip determined?

    Learn how the pip is used in the pricing of a currency pair in forex trading, and see how the foreign exchange market is ... Read Answer >>
  5. What are the most common currency pairs traded in the forex market?

    There are many official currencies that are used all over the world, but there only a handful of currencies that are traded ... Read Answer >>
Related Articles
  1. Trading

    Top 6 Most Tradable Currency Pairs

    The most frequently traded currency pair is the euro/U.S. dollar. The euro is the base currency in the pairing, while the dollar is the quote currency.
  2. Investing

    How Brexit Can Impact the Euro and the U.S. Dollar

    Find out why Brexit could threaten the short-term stability of the British pound sterling and the euro, and why the U.S. dollar stands to benefit.
  3. Trading

    The 6 Most-Traded Currencies And Why They're So Popular

    Every currency has specific features that affect its underlying value and price movements in the forex market.
  4. Investing

    The Top 3 British Pound ETFs

    If you're betting on a recovery after Brexit, you might want to consider these British pound ETFs.
  5. Trading

    How to Calculate an Exchange Rate

    Struggling to get a grasp on exchange rates? Here's what you need to know.
  6. Trading

    The Forex Market: Who Trades Currency And Why

    The forex market has a lot of unique attributes that may come as a surprise for new traders.
  7. Trading

    What Makes the EUR/USD A Risky Trade Now?

    What are the current risks of trading the EUR/USD pair? The Fed may raise interest rates this summer and the ECB has begun a quanitative easing program.
RELATED TERMS
  1. Cable

    Slang used among forex traders referring to the exchange rate ...
  2. GBP/USD (British Pound/U.S. Dollar)

    The abbreviation for the British pound and U.S. dollar (GBP/USD) ...
  3. GBP

    The abbreviation for the British pound sterling, the official ...
  4. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  5. Reciprocal Currency

    In the foreign exchange market, a currency pair that involves ...
  6. Major Pairs

    The four forex pairs which are considered to be the most heavily ...
Hot Definitions
  1. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
  2. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  3. Aggregate Demand

    The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
  6. Payback Period

    The length of time required to recover the cost of an investment. The payback period of a given investment or project is ...
Trading Center