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. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
  2. 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 >>
  3. What is the value of one pip and why are they different between currency pairs?

    In forex markets, currency trading is done on some of the world's most powerful currencies. The major currencies traded are ... Read Answer >>
  4. 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 >>
  5. How do you make money trading money?

    Investors can trade almost any currency in the world. Investors, as individuals, countries, and corporations, may trade in ... Read Answer >>
  6. Why do forex traders use a currency converter?

    All currencies are quoted in pairs - one country's currency against another country's currency. A currency converter is used ... Read Answer >>
Related Articles
  1. Trading

    The British Pound: What Every Forex Trader Needs To Know

    As a strong alternative to the dollar it is likely that the pound will remain a preeminent global currency for some time to come.
  2. Investing

    3 Top British Pound ETFs Suffer After Brexit Vote

    ETFs focused specifically on the British pound (GBP) have taken a beating on the heels of Britain's 'leave' vote.
  3. 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.
  4. 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.
  5. Trading

    Currency All-Time Highs And Lows

    These four major currencies have seen some wild swings in the floating market since 1990.
  6. Trading

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

    Regardless of the reason, forex is an integral part of 21st century finance. And the more widely used and reliable the currency, the greater the likelihood of people buying and selling it every ...
  7. 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.
  8. Trading

    Here's How You Calculate An Exchange Rate

    Struggling to get a grasp on exchange rates? Here's what you need to know.
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. Losing The Points

    A currency trading term that describes when the banks' buying ...
  5. Reciprocal Currency

    In the foreign exchange market, a currency pair that involves ...
  6. Cross Rate

    The currency exchange rate between two currencies, both of which ...
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center