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What Is Traded Within The Foreign Exchange Market?
- April 27, 2021
- Posted by: Admin
- Category: Blog
The answer to this question is quite simple— money is traded within the forex market. To be more accurate, it is currencies that are traded. Since you are not purchasing anything that is physical, this type of trading can be seen as complicated to many.
The easiest way to look at this is by thinking of buying a currency like buying a share in a certain country. The cost of a currency is most often a direct correlation to the market’s outlook on both the current and future health of a country’s respective economy.
For example, if you were to buy Japanese yen, then you are essentially just purchasing a share in the Japanese economy. In this hypothetical situation, you are under the belief that the Japanese economy is doing well, and will improve more and more as time goes by, making you profit in the end.
Major currencies are some of the most prevalent currencies in the world, as well as the most traded within the market. These major currencies include:
- USD, EUR, JPY, GBP, CHF, AUD, NZD, CAD
Currency symbols, such as the ones above, will have three letters in total. The first two identify the country, and the final letter indicates the type of currency used in that country.
Take USD for example. US stands for “United States”, whereas the D stands for “Dollar(s)”.
How We Can Help
We here at Smart Prime Academy love helping people learn more about the foreign exchange market. In times like these, investing is a great way to make profit and succeed in all facets of finance and business. We want to take it a step further, and offer you our foreign exchange market courses in Richmond Hill, where you can learn everything there is to know about the industry. To learn more, be sure to give us a call at 1-877-870-0092 today. We look forward to hearing from you!