What is forex currency and how does it work
Before knowing what is Forex currency, we need to know what is currency? I hope we know that because life is hell without currency. You can't buy any goods or take any services without currency. When poverty comes in at the door, love flies out of the door. So, we understand that currency is money. We also know that money brings money. Currency is a unit of exchange that aims to facilitate the transfer of goods and services. Mostly it takes the form of money.It is usually issued by each nation or group of nations (think of the euro) mostly through its own central bank in a monopoly regime. In some states, there are more than one issuing institution.
Multiple countries may use the same name for their currencies (eg, dollar, Canadian and US), may use the same currency (eg: the euro), or a nation may declare the currency of another country as legal tender (for example, the US dollar is the legal currency of Panama), a process that is indicated by dollarization. Each currency typically has multiples and submultiples, usually cents are used.
The term currency is used more specifically to indicate foreign currencies held by citizens and institutions of a state, in the form of circulating money and credit instruments. A typical example of this possession is represented by the currency reserves held by the central banks. Each central bank holds a given amount of foreign currency or currency in order to meet the demands of economic operators and to defend the value of its currency.
The possession of currency by the citizens and businesses of a state is usually subject to administrative rules that establish how much money can be held and under what conditions. Now we try to understand what is forex currency?
Forex currency
In the whole world, 180 currencies approved by United Nation but they all are not allowed in the forex trading platform. The currency that can be traded in the Forex market is called Forex currency.Forex currency list and country name which are allowed in forex market
Name of country |
Name of currency |
Symbol of currency |
|---|---|---|
| United state of America | American Dollar | USD |
| United Kingdom | British Pound | GBP |
| European Union | EURO | EUR |
| Japan | Japanese Yen | JPY |
| Australia | Australian Dollar | AUD |
| Newzealand | Newzealand Dollar | NZD |
| Canada | Canadian Dollar | CAD |
| Switzerland | Swiss Franc | CHF |
| Romania | Romanian Leu | RON |
| Bulgaria | Bulgarian Lev | BGN |
| Turkish | Turkish Lira | TRY |
| Czech Republic | Czech Koruna | CZK |
| Denmark | Danish Krone | DKK |
| Denmark | Danish Krone | DKK |
| Hong Kong | Hong Kong Dollar | HKD |
| Hungary | Hungarian Forint | HUF |
| Israel | Israeli New Shekel | ILS |
| China | Chinese Renminbi | CNH |
| Mexico | Mexican Pesso | MXN |
| Norway | Norwegian Krone | NOK |
| Poland | Poland Zloty | PLN |
| Russia | Russian Ruble | RUB |
| Sweden | Swedish Krona | SEK |
| Singapore | Singapore Dollar | SGD |
| South Africa | South African Rand | ZAR |
Nicknames for the most popular forex currencies
Just like we have a nickname along with a name, Some forex Currency has a pretty good nickname.
Name of Currency |
Nickname |
|---|---|
| USD | Greenback or Buck |
| GBP | Sterling |
| EUR | Single Currency Or Fiber |
| CHF | Swissy |
| CAD | Loonie |
| AUD | Aussie or Ozzie |
| NZD | Kiwi |
Most traded forex currencies
We already know that forex is the largest market in the world, after an average value of $ 5.2 billion of transactions per day. Here we find the 10 most traded currencies, which participate in almost 90% of transactions. The 10 most traded currencies by value are the following:
1.US Dollar ( USD)
2.Euro ( EUR )
3. Japanese Yen ( JPY )
4. British Pound ( GBP )
5. Australian Dollar ( AUD )
6. Canadian Dollar ( CAD )
7. Swiss Franc ( CHF )
8. Chinese Renminbi ( CNH )
9. Swedish Krona (SEK )
10. Newzealand Dollar ( NZD)
Type of forex currenciesThere are two types of forex currency. Major forex currency and minor forex currency.
What is the major forex currency?
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