What is Traded in Forex?

The simple answer is MONEY. Specifically, currencies. Forex trading can be confusing, but think of buying a currency as buying a share in a particular country. The price reflects the market’s opinion of the economy’s health. Buying, for example, the Japanese yen means you’re betting on Japan’s economic growth.

Major Currencies

Major currencies are the most heavily traded and represent some of the largest economies. They include:

• USD – Dollar (Buck)
• EUR – Euro (Fiber)
• JPY – Yen (Yen)
• GBP – Pound (Cable)
• CHF – Franc (Swissy)
• CAD – Dollar (Loonie)
• AUD – Dollar (Aussie)
• NZD – Dollar (Kiwi)

Currency codes are standardized by ISO 4217. For instance, NZD stands for New Zealand Dollar.

Fun Facts

The British Pound is the oldest currency in use, dating back to the 8th century, and the newest is Zimbabwe Gold (ZiG), launched on April 8, 2024. Nicknames for USD include “Greenbacks,” “Benjamins,” and “Coco” in Peru.