Why is the British pound / U.S. dollar currency pair known as "trading the cable"?

By Investopedia Staff AAA
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.



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