Now that you know about how the market works, you will now need to know about the currency being traded on the Forex market. You need to know the countries that are currently trading with Forex.
There are at least 12 different currencies that are being traded at any one particular time. However there are only 8 popular currencies that are the most traded. These currencies are financial instruments of each of these particular countries. The most popular currencies that are traded will include currency from New Zealand, Switzerland, Europe, Great Britain, Japan, Canada, Australia and the United States. Each one of these is identified by a three digit identifier.
The three digit identifier for each of these countries is the following: Japan – Yen, New Zealand – NZD, United States – USD, Switzerland – CHF, Canada – CAD, Australia – AUS, Great Britain – GBP, and European Union – EUR. When trading these currencies, you would be well advised to know the nicknames of the individual currencies. Here are the nicknames of the currencies as follows: Japan – Yen, New Zealand – Kiwi, United States – Buck, Switzerland – Swissy, Canada – Loonie, Australia – Aussie, Great Britain – Cable and European Union – Fiber. You also need to know the currency name as well.
These are as follows: Japan-Yen, New Zealand – Dollar, United States – Dollar, Switzerland – Franc, Canada – Dollar, Australia – Dollar, Great Britain – pound or pound sterling and the European Union is the Euro. The way that you read the identification of a currency is that the first two letters identify the country while the last identifies the currency of that particular country. Other countries that are included in the Forex market will include the Krona of Sweden, South Korean Won, the Norwegian Krone, Singapore Dollar, Mexican Peso and Hong Kong Dollar. The call names are as follows: SEK, KRW, NOK, SGD, MXN and HKD.
No matter what country that you live in, you can trade foreign currency. Every country that has a currency system is traded in the currency market. The most popular have been listed above for reference purposes. These currency pairs can be traded at any time day or night while the market is in action. The biggest currency traded in the market is indeed the USD. This is followed by the Euro, the Yen and the Pound in share of the marketplace. The Swiss Franc, the Australian Dollar, the New Zealand Dollar, the Canadian Dollar, the Hong Kong Dollar, The Swedish Krona, the Singapore Dollar, Norwegian Krone and the Mexican Peso all follow after that in no particular order.
So you can see immediately how important knowing about the currency that is traded can help you with understanding how the pairs and currencies work in this particular market. Once you know about the currency and the countries that trade, then you can begin to make trades using different currency pairs. Understanding and knowing the designations will also help you to trade. No matter what currency you trade with, each must be in a pair such as USD/CHF which ready US Dollar/Swiss Franc.