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Oct 2020

Understanding the Currency Trading Process

Currency trading is the exchange of one currency for another currency. This means that it is the buying and selling of money. In a very simple sense, all currency trading is the exchange of one currency for another. This market regulates the international exchange rates for each currency.

This market decides exchange rates for each currency worldwide. It includes all aspects related to purchasing, selling and trading currencies in current or predicted values. For example, if you are from the United States, your basket of currency may include United States dollar, Canadian dollar, Japanese yen, Euro, Swiss franc and Australian dollar. Your basket may also include other currencies but these will be the most significant ones.

The US dollar is the currency traded on the major exchange markets. On the other hand, the Canadian dollar is traded on the North American Dollar Exchange. Similarly, the Euro is traded on the European Central Market. On the other hand, the Australian dollar is traded on the New Zealand Dollar and the Swiss franc on the Swiss National Bank. The other major currency pairs in the Forex market are the British pound (GBP) and the Japanese yen (JPY), the Australian dollar and the Euro (USD).