Forex Trading Currencies

Currencies

Forex Trading Currencies

Currencies are the market measures for the value of different nations’ currencies against each other world currencies. A country’s currency vies with many others for the status of the currency being exchanged. For instance, if you have an American dollar and you want to exchange it for a British pound, you will be exchanging American money for British pounds. The value of the two currencies will vary greatly depending on the current exchange rate for each other. This value is known as the exchange rate. Currencies can also be traded in tandem with other currencies or on their own.

Currencies are generally traded on major exchanges like the New York Stock Exchange (NYSE) or the London Stock Exchange (LBEX). A few other smaller exchanges exist but they are not as highly traded as the above two. In general, most Forex transactions take place between two major currencies that are widely recognized by most people across the world, i.e. the U.S. dollar against the Euro, Japanese yen ( JPY), British pound (GBP) or the Australian dollar against the Australian dollar. When the U.S. dollar and the Euro are compared next to each other, the dollar usually loses out and usually the trade is won by the Euro.

Most Forex trading currencies are always traded in pairs. This means that you can either buy one euro and sell another or buy one dollar and sell another. Most traders use the Swiss franc (CHF) or the Euro (EUR) as their pair of choice. Currencies can be traded worldwide using a network of brokers that can provide liquidity between multiple exchanges. The use of a Swiss franc or the Euro would make Forex trading more convenient for most traders.