The nominal currency shows the value of the foreign currency in the ratio to a national currency.


  • USD/JPY = 121.47, expresses the equality of 1 US Dollar to 121.47 Japanese yen.

  • EUR/USD = 1.0592, means that 1 Euro is equal to 1.0592 US dollar.


A pair of currencies traded in FOREX does not include the U.S. dollar. One foreign currency is traded for another without having to first exchange the currencies into American dollars. Cross currencies including the US dollar are often used in trading operations carried at the financial markets of the world. The reason for this is that besides the fact that the US dollar is one of the major reserve currency it is also used in cross-currency trading operations. The formula on the cross currencies with the US dollar is calculated as follows:



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