What is traded in the forex market? Nothing but currency. Yes, we forex traders buy and sell currency in the forex market. This type of buying and selling is confusing as the whole process is not like conventional buying and selling.
What is forex trading all about
You are buying shares of a country when you buy that country’s currency. The current and future state of the country’s economy is reflected in the currency’s value.
You’re effectively investing in the Australian economy when you buy or sell the Aussies. You think that the economy of Australia will continue to improve in the future.
The exchange rate of one currency to another is more indicative of that country’s economy than it is of another.
List of what is traded in the forex market
| Symbol | Currency name | Nickname | Country name |
| EUR | Euro | Fiber | Euro Zone |
| GBP | Pound | Cable | Great Britain |
| USD | Dollar | Buck | United states |
| JPY | Yen | Yen | Japan |
| CHF | Franc | Swissy | Switzerland |
| CAD | Canadian Dollar | Loonie | Canada |
| NZD | New Zealand Dollar | Kiwi | New Zealand |
| AUD | Australian Dollar | Aussie | Australia |
The currency symbol consists of three letters, where the first two indicate the name of the country and the third indicates the name of the currency of that country.
Take the same approach to learn about different currencies. For example, in the case of US, the US stands for the United States, and D for the Dollar. Easy, isn’t it? In this example, the above currencies are the main ones because they are the most traded. But these are not the only currencies what is traded in forex market. Many minor, cross,exotic and local currencies are also traded in forex market.
28 major forex pair ( for professional traders)
If you are a professional trader, then the list of 28 forex pairs is necessary. No matter which strategy you follow or which time frame you trade, just stick to these 28 major currency pairs; you will make fewer mistakes in trading. But if you don’t know the 28 major pairs list, you could trade some exotic pairs where the spread is too high. All your profit will be gone in the name of spreads.
conclusion
Before starting trading forex or investing real money in currency trading, you first need to understand what the forex market is all about& What is traded in the forex market. If you don’t know that, then how could you trade here? in this complex market? Currency pair is traded in this market. like other markets, forex markets is also affected by supply and demand. The forex market and currency trading are similar to other foreign exchange markets, but the only difference is that no one can control the market. The market is boss here, and even central banks can’t intervene that much.
