Commodity Pairs

Dictionary Says

Definition of 'Commodity Pairs'

The three forex pairs which include currencies from countries that possess large amounts of commodities. The commodity pairs are: USD/CAD, USD/AUD, USD/NZD. These pairs are highly correlated to changes in commodity prices, therefore traders looking to gain exposure to commodity fluctuations often take advantage of these pairs.
Investopedia Says

Investopedia explains 'Commodity Pairs'

Although there are many countries with large natural resource and commodity reserves, such as Russia, Saudi Arabia and Venezuela, the commodities of many of these nations are usually highly regulated by their domestic governments or thinly traded. The Canadian, Australian and New Zealand dollars are traded at high volumes and are therefore very liquid in the forex market.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Base Currency

    The first ...
  2. Cross Currency

    A pair of ...
  3. Currency Pair

    The quotation ...
  4. Forex - FX

    The market in ...
  5. Quote Currency

    The second ...
  6. Reciprocal Currency

    In the foreign ...
  7. Capital Loss

    The loss ...
  8. Commodity Futures Trading Commission ...

    An independent ...
  9. Delta

    The ratio ...
  10. Prepayment Risk

    The risk ...

Articles Of Interest

  1. A Primer On The Forex Market

    Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
  2. Forex: Wading Into The Currency Market

    We go over the ground rules and available resources needed for this undertaking.
  3. Getting Started In Forex

    Before entering this market, you should define what you need from your broker and from your strategy.
  4. Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.
  5. Make The Currency Cross Your Boss

    Tap into a world of possibilities by going beyond the simple pro- or anti-dollar trade.
  6. Trade Forex With FXTrader

    Open up the big bad world of forex trading by virtually trading 10 of the most popular currency pairs on our NEW forex trading simulator.
  7. In forex, what are the commodity pairs?

  8. 5 Common Misconceptions About ETFs

    The rise in these funds' popularity has contributed to misinformation about what they are and how they work. Learn more here.
  9. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  10. Introduction To Asset-Backed And Mortgage-Backed Securities

    In this article, we will go through the structure, along with some examples of ABS and valuation.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center