What is in Forex trading?
The simple answer is money.
Forex trading can be confusing because you don’t buy anything.
Consider buying a currency as a stock in a particular country, a bit like buying a company’s stock.
The price of money usually directly reflects the market’s perception of the current and future health of their respective economies.
In Forex trading, when you buy the yen, you are basically buying a “share” in the Japanese economy.
You bet that the Japanese economy is in good shape and will get better over time. Once you sell these “stocks” back to the market, I hope that you will eventually make a profit.
In general, the exchange rate of the currency against other currencies reflects the state of the economy compared to the economies of other countries.
When you graduate from this Pipsology Academy, you will be eager to start using the currency.
Take New Zealand as an example. New Zealand represents New Zealand and D represents the United States dollar. Is it easy enough?
The currencies included in the above chart are called “major currencies” because they are the most widely traded currencies.
We also want to tell you that “buck” is not the only nickname for the dollar.
Also: dollars, bones, benjis, benjamins, cheddar cheese, paper, loot, scrilla, cheese, bread, moolah, dead president and cash.
So if you want to say, “I have to go to work now.”
Instead, you can say, “Hey, I have to bounce! Let them be the sons of benjis!”