What is traded on Forex?

money currency currency
The answer is simple: MONEY.
Because you don’t buy anything physical, Forex can make things confusing.

Imagine buying a currency as a share in any country, for example shares of a company. The price of the currency is often a direct reflection of the market’s review on the current and future health of its economy.

In Forex trading, when you buy, say, the Japanese Yen, you buy a “share” of the Japanese economy. You are betting that the Japanese economy is doing well and will do even better in the future. Once these shares are resold in the market, you will leave, it is desirable, with a profit.

In general, the exchange rate of one currency against another reflects the economic condition of the country in question, compared to all other economies of other countries

At the end of your training at this Pipsology school, you will only want to start working on currencies.

Major currencies (“Majors”)

SymbolCountryCurrencyNickname
USDUnited StatesDollarBuck
EURMember of the Euro zoneEuroFiber
JPYJapanYenYen
GBPGreat BritainPoundCable
CHFSwitzerlandFrankSwissy
CADCanadaDollarLoonie
AUDAustraliaDollarAussie
NZDNew ZĂ©landeDollarKiwi

Currency symbols always consist of three letters, the first two identifying the name of the country and the third the name of the currency of that country.

Take NZD for example. NZ stands for New Zealand, while D stands for dollar. Not too hard, is it?

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

We remind you that “buck” is not the only nickname for the USD.

There are also: “greenbacks”, “bones”, “benjis”, “benjamins”, “cheddar”, “paper”, “magot”, “scrilla”, “cheese”, “bread”, “moolah”, “dead presidents” and cash money.

If you meant “I have to go to work now”.

Instead, you could say, “Yo, it has to move! We’re going to do “benjis”, man”!

Or if you meant “I have a lot of money, let’s go to the mall in the evening”.

Instead, why not say “Yo, I have scrilla to sell! Let’s go to the Auchan for a party tonight”!

Did you also know that in Peru, one of the nicknames of the U.S. dollar is the “Coco”, a diminutive for Jorge (George in Spanish), a reference to George Washington’s portrait on the USD 1 bill?

george washington
They call me Coco, yo!