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  • What Do You Trade in Forex

    In the beginning, forex trading may baffle you as you’re not acquiring anything tangible.

    Trading currencies is similar to purchasing shares of a certain company.

    The value of a currency with regards to its future survival in the market is determined by its price.  

    For instance, when you acquire Canadian dollars in forex, it may very well be said that you acquired shares in a Canadian company.

    This implies that, in your opinion, Canadian economy is doing great and will prosper in the future. Additionally, you think that you’ll be able to make profit by selling the currency back to the market.

    Generally, the value of a particular currency, as compared to other currencies, with regards to its future survival in the market is determined by its exchange rate.

    You’ll be willing to trade currencies once you go through our version of Forex: Pipsology.

    Major Currencies

    There are numerous currencies to trade on forex. However, as a beginner, it is always a good idea to trade major currencies in the start.

    what is traded in forex


    Image Source: http://www.econtrader.com

    forex trading

    Image Source: https://paxforex.com

    There are three letters in a currency symbol, as evident in the image above. The name of the country is represented by the first two letters and its currency is identified by the last letter.     

    For example, we have GBP. GB stands for Great Britain and P stands for the currency in Great Britain which is the Pound.

    The currencies in the image above are extensively traded which is why they are referred to as the “major currencies”.

    FYI, US dollars are not only known as “Buck”, it has plenty other nicknames as well.

    SYMBOLCOUNTRYCURRENCYNICKNAME
    GBPGreat BritainPoundCable
    USDUnited StatesDollarBuck
    JPYJapanYenYen
    AUDAustraliaDollarAussie
    NZDNew ZealandDollarKiwi
    CADCanadaDollarLoonie
    EUREurozoneEuroFiber
    CHFSwitzerlandFrancSwissy

    For instance; cash money, dead presidents, moolah, bread, cheese, scrilla, loot, paper, cheddar, benjamins, benjis, bones and greenbacks.

    Instead of saying “I have to earn money.” You can try saying, “Dude, I got to get them benjamins.”

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