Currency and Exchange Rates

Confused with Currency Exchange Rate? Let’s review the basics of it.

How can you trade something that you can’t see or touch? Since trading currencies isn’t something physical forex might seem confusing in the beginning. One way to brush the confusion away is to think of buying a currency in the same way as you think of buying shares in a particular country.   

EXAMPLE: Let’s say, you decided to buy Japanese Yen. What exactly did you do? You bought a share in the Japanese economy. The value of the currency is an upfront indication of what the market thinks of Japanese economy today and in the future. 

 What Does Exchange Rate Show?

The exchange rate of a certain currency against currencies from other countries shows the condition of that country’s economy compared to the other countries’ economies.  

What Is The Most Traded Currency?

Currently US dollar (USD) is the most traded currency. Other major currencies after US dollar are:

CurrencyCountryForex Symbol
EuroEuro membersEUR
PoundGreat BritainGBP
DollarNew ZealandNZD

How is the currency trading performed?

Currencies are traded in pairs: For example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY). In order to start trading, you have to read forex brokers reviews and choose the broker to trade with.

Trading financial instruments carries high level of risk to your capital with the possibility of losing more than your initial investment. This site will not be held liable for any loss or damage in result from using the information within the site including forex Broker reviews 2022, market analysis, trading signals, learning resources and comparison tables. The data within this website is not necessarily real-time nor accurate and do not represent the recommendations of the employees. Currency trading is not suitable for all investors. Before deciding to trade currency or any other financial instrument please consider consider your investment objectives, level of experience, and risk appetite. While we do our best to provide up-to-date information, we strongly encourage you to verify it directly with the broker of your choice.