WHAT IS TRADED IN THE FOREX MARKET

Forex is short for Foreign Exchange, exchange of foreign currencies. What is traded in the market is, currencies of different countries. This kind of market was confusing for me to understand at first, but I now know what it is.

I this how it works. Currencies are always bought and sold in pairs. One currency; lets say the EURO (European Member) is used to buy another currency let’s say the USD (United States Dollar), or the U.S Dollar is sold in exchange for the Euro. Any transaction  always involves two currencies which are traded in pair.

THE MAJOR CURRENCIES IN THE FOREX MARKET

 1.United State Dollar              (USD)             Dollar

 2.European Member                (EUR)            Euro

 3.Japanese Yen                        (JPY)              Yen

 4.Great Britain Pound              (GBP)            Pound

 5. Switzerland Franc                 (CHF)           Swissy
 6.Canadian Dollar                    (CAD)          loonie

 7.Australia Dollar                     (AUD)         Aussie

Also, currencies are usually paired in relation to there exchange rates, that is, a strong currency against a weak currency. A currency with a higher interest rate against a currency with a lower interest rate.    

Thank you for reading.