Because you don't buy anything physically, forex trading can be confusing, so we'll use a simple (but not perfect) comparison to explain.
Think of buying a currency as buying shares of a particular country, such as buying shares in a company. The price of a currency is usually a direct reflection of the current view of the market and the future health of its individual economy.
For example, if you buy Japanese yen while trading forex, you are essentially buying a "part" of the Japanese economy.
In general, the exchange rate against other currencies reflects the country's economic situation compared to other economies. By the time you finish this school of pipsology, you will be thrilled to start working with money.
Uptights have a better chance of getting straight A and following all the rules, because children only count USD, EUR, JPY, GBP and CHF as the main currencies. They then referred to AUD, NZD and CAD as "commodity currencies".
Below we list them according to their symbol, the country where they are used, the name of the currency and great nicknames.
Currency symbols always have three letters, with the first two letters indicating the name of the country and the third letter the name of the currency of that country, usually the first letter of the currency name.
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