{"id":9377,"date":"2022-10-10T16:47:44","date_gmt":"2022-10-10T16:47:44","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9377"},"modified":"2022-10-10T16:47:44","modified_gmt":"2022-10-10T16:47:44","slug":"what-is-traded-in-forex","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/10\/what-is-traded-in-forex\/","title":{"rendered":"What Is Traded In Forex?"},"content":{"rendered":"\n

What is traded in forex?<\/p>\n\n\n\n

The simple answer is MONEY<\/strong>. Specifically, currencies.<\/p>\n\n\n\n

Because you\u2019re not buying anything physical, forex trading can be confusing so we\u2019ll use a simple (but imperfect) analogy to help explain.<\/p>\n\n\n\n

Think of buying a currency as buying a share<\/em> in a particular country<\/strong>, kinda like buying shares in a company.<\/p>\n\n\n\n

The price of the currency is usually a direct reflection of the market\u2019s 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 \u201cshare\u201d in the Japanese economy.<\/p>\n\n\n\n

\"JPY\"<\/figure>\n\n\n\n

You are betting<\/em> that the Japanese economy is doing well, and will even get better as time goes.<\/p>\n\n\n\n

Once you sell those \u201cshares\u201d back to the market, hopefully, you will end up with a profit.<\/p>\n\n\n\n

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country\u2019s economy, compared to other economies.<\/strong>By the time you graduate from this School of Pipsology, you\u2019ll be eager to start working with currencies.<\/p>\n\n\n\n

Major Currencies<\/h2>\n\n\n\n

While there are potentially lots of currencies you can trade, as a new forex trader, you will probably start trading with the \u201cmajor currencies<\/strong>\u201c.<\/p>\n\n\n\n

\"Major<\/a><\/figure>\n\n\n\n

They\u2019re called \u201cmajor currencies<\/strong>\u201d because they\u2019re the most heavily traded currencies and represent some of the world\u2019s largest economies.<\/p>\n\n\n\n

Forex traders differ on what they consider as \u201cmajor currencies\u201d.<\/p>\n\n\n\n

The uptight ones who probably got straight A\u2019s and followed all the rules as children only consider USD, EUR, JPY, GBP, and CHF as major currencies.<\/p>\n\n\n\n

Then they label AUD, NZD, and CAD as \u201ccommodity currencies<\/strong>\u201c.<\/p>\n\n\n\n

For us rebels, and to keep things simple, we just consider all eight currencies as the \u201cmajors\u201d.Below, we list them by their symbol, country where they\u2019re used, currency name, and cool nicknames.<\/p>\n\n\n\n

CODE<\/th>COUNTRY<\/th>CURRENCY<\/th>NICKNAME<\/th><\/tr>
USD<\/td>United States<\/td>Dollar<\/td>Buck<\/td><\/tr>
EUR<\/td>Eurozone<\/td>Euro<\/td>Fiber<\/td><\/tr>
JPY<\/td>Japan<\/td>Yen<\/td>Yen<\/td><\/tr>
GBP<\/td>Great Britain<\/td>Pound<\/td>Cable<\/td><\/tr>
CHF<\/td>Switzerland<\/td>Franc<\/td>Swissy<\/td><\/tr>
CAD<\/td>Canada<\/td>Dollar<\/td>Loonie<\/td><\/tr>
AUD<\/td>Australia<\/td>Dollar<\/td>Aussie<\/td><\/tr>
NZD<\/td>New Zealand<\/td>Dollar<\/td>Kiwi<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\"Major<\/figure>\n\n\n\n

Currency symbols always have three letters<\/strong>, where the first two letters identify the name of the country and the third letter identifies the name of that country\u2019s currency, usually the first letter of the currency\u2019s name.<\/p>\n\n\n\n

These three letters are known as ISO 4217 Currency Codes.<\/strong><\/p>\n\n\n\n

By 1973, the International Organization for Standardization<\/strong> (ISO) established the three-letter codes for currencies that we use today.<\/p>\n\n\n\n

\"Currency<\/figure>\n\n\n\n

Take NZD<\/strong> for instance\u2026<\/p>\n\n\n\n

NZ<\/strong> stands for New Zealand, while D<\/strong> stands for dollar.<\/p>\n\n\n\n

Easy enough, right?<\/p>\n\n\n\n

The currencies included in the chart above are called the \u201cmajors\u201d because they are the most widely traded ones.<\/p>\n\n\n\n

DID YOU KNOW?<\/strong> \nThe British pound<\/strong> is the world\u2019s oldest currency \nthat\u2019s still in use, dating back to the 8th century. \nThe newest currency in the world is the South <\/strong>\nSudanese pound<\/strong>, made official on July 18, 2011.<\/code><\/pre>\n\n\n\n
We\u2019d also like to let you know that \u201cbuck\u201d isn\u2019t the only nickname for USD.<\/p>\n\n\n\n
There\u2019s also: greenbacks, bones, benjis, benjamins, cheddar, paper, loot, scrilla, cheese, bread, moolah, dead presidents, and cash money.<\/p>\n\n\n\n
So, if you wanted to say, \u201cI have to go to work now.\u201d<\/p>\n\n\n\n
Instead, you could say, \u201cYo, I gotta bounce! Gotta make them benjis son!\u201d<\/p>\n\n\n\n
FUN FACT:<\/strong> 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?<\/p>\n\n\n\n
\"Coco\"\/<\/figure>\n\n\n\n
They call me Coco yo!<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"
What is traded in forex? The simple answer is MONEY. Specifically, currencies. Because you\u2019re not buying anything physical, forex trading can be confusing so we\u2019ll use a simple (but imperfect) analogy to help explain. Think of buying a currency as buying a share in a particular country, kinda like buying shares in a company. The price of the currency is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[784],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9377"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9377"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9377\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}