What is Forex: 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.
By the time you graduate from this School of Pipsology, you’ll
be eager to start working with currencies.
Major
Currencies
|
Symbol
|
Country
|
Currency
|
Nickname
|
|
USD
|
United States
|
Dollar
|
Buck
|
|
EUR
|
Euro zone members
|
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
|
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.
So, if you wanted to say, “I have to go to work now.”
Instead, you could say, “Yo, I gotta bounce! Gotta make them
benjis son!”
Or if you wanted to say, “I have lots of money. Let’s go to the
shopping mall in the evening.”
Instead, why not say, “Yo, I gots mad scrilla! Let’s go rock
that mall later.”
Did you also know that in Peru, a nickname for the U.S. dollar
is Coco, which is a pet name for Jorge (George in Spanish), a reference to the
portrait of George Washington on the $1 note?
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