What Is Traded In Forex?

11_movebar

07_kiss Handbook for Forex Trader

02_writer About Forex  06_button  Trade Forex  05_button Times to Trade    Forex Trader  04_button  Forex Trading  Margin Account

11_movebar

04_button What is traded in Forex?

The simple answer is MONEY.

Because you’re not buying anything physical, Forex trading can be confusing.

Think of buying a currency as buying a share in a particular country, kinda like buying stocks of a company.

The price of the currency is usually a direct reflection of the market’s opinion on the current and future health of its respective economy.

In Forex trading, when you buy, say, the Japanese yen, you are basically buying a “share” in the Japanese economy.

You are betting that the Japanese economy is doing well, and will even get better as time goes. Once you sell those “shares” back to the market, hopefully, you will end up with a profit.

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country’s economy, compared to other countries’ economies.

Major Currencies

While there are potentially lots of currencies you can trade, as a new trader, you will probably start trading with the “major currencies.”

SYMBOL COUNTRY CURRENCY NICKNAME
USD United States Dollar Buck
EUR Eurozone Euro Fiber
JPY Japan Yen Yen
GBP Great Britain Pound Cable
CHF Switzerland Franc Swissy
CAD Canada Dollar Loonie
AUD Australia Dollar Aussie
NZD New Zealand Dollar Kiwi

05_button Currency symbols always have three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency.

Take NZD for instance. NZ stands for New Zealand, while D stands for dollar. Easy enough, right?

The currencies included in the chart above are called the “majors” because they are the most widely traded ones.

We’d also like to let you know that “buck” isn’t the only nickname for USD.

There’s also: greenbacks, bones, benjis, benjamins, cheddar, paper, loot, scrilla, cheese, bread, moolah, dead presidents, and cash money.

11_movebar

Category and Next Topics

06_button For more details, please register Telegram’s Channel and Group

 02_writer

11_movebar

03_updated

01_back 00_home 01_next

error: Content is protected !!