Forex Trading

What is traded in Forex? What is Trading on the Forex Market

What is traded in Forex? What is Trading on the Forex Market: Hello friends, this is 2nd chapter of forex trading. In this chapter, you will read about the details that is traded in forex. If you have a question in mind that what is trading on the forex market, then the answer of your question is given below in detail.

What is traded in forex? The answer of this question is Money!!. Money is traded in forex in digital form. On Forex Market, you are not buying and selling any physical good but instead of that digital for of money is traded in Forex.

Through Forex, you are buying a country’s currency in digital form or you can say you are buying the share of a currency. The price of a countries currency shows a direct reflection of any market’s opinion on current as well as the future health of a countries economy.

Forex Trading Example:

Assume that you are buying Indian Currency through Forex Trading with the help of your forex trading account. In this process you are buying the shares in the Indian economy that means you can easily buy and sell the shares in any countries economy with the help of forex trading.

Now you have purchased the shares of Indian Economy at a given price and in case the price of the Indian Currency goes up after some time, then you can sell those shares through forex trading account and in return you will get enough profit.

Forex Trading Video

Trading in Forex exchange market is not a difficult task. Anyone with little knowledge about trading, can easily open a forex trading account and start trading immediately.

In simple words, the exchange rate of a currency with other currencies shows that the current condition of that country’s economy and in the same way you can compare these currency with one another countries currencies. On Babaji Academy, you will get to know more about trading with currencies in the upcoming chapters.

Major Currencies

As a beginner, you can trade easily with many currencies, but below you can see the major currencies that you must trade with as a new trader.

SYMBOLCOUNTRYCURRENCYNICKNAME
USDUnited StatesDollarBuck
EUREurozoneEuroFiber
JPYJapanYenYen
GBPGreat BritainPoundCable
CHFSwitzerlandFrancSwissy
CADCanadaDollarLoonie
AUDAustraliaDollarAussie
NZDNew ZealandDollarKiwi

These currencies are the major currencies because these are mostly widely traded currencies in the market that’s why these are called as major currencies.

The Currency symbol of any country have three letters, in which the first two letters denotes the name of the country and the third letter denotes the name of that country’s currency.

For example USD. In USD, US stands for United States and D represents for Dollar. Wow! sounds good. Now its so easy for you to identify any currencies country name very with this trick!!

Read chapter 1 from here:

Conclusion: In this 2nd chapter, you learned about the full details what is traded in forex. If you like the post, then do share it with others. You can also leave your comment if you have any doubt.

About the author

babajiacademy

Leave a Comment