Currencies in Forex

Forex Trading

Before learning how to trade on this market, it is essential to have a deep understanding of the currencies being traded. After all, currency trading is the backbone of the forex market, and without a solid understanding of the currencies being traded, it can be difficult to make informed decisions and potentially profit from fluctuations in currency values.

Understanding Currency Symbols

Each currency is represented by a specific symbol. These symbols are composed of three letters, with the first two letters representing the country and the third letter representing the currency. For example, the symbol for the U.S. dollar is "USD", with "US" representing the country and "D" representing the currency.

The currencies that are traded in the forex market are divided into three categories: major, minor and exotic currencies.

Major Currencies in Forex

Major currencies, also known as the 'majors', are the most widely traded currencies in the world. These currencies are considered the most stable and are generally more liquid than other currencies, making them more attractive to traders.

The symbols for these major currencies are as follows:

USD (U.S. Dollar)

EUR (Euro)

GBP (British Pound)

JPY (Japanese Yen)

CHF (Swiss Franc)

CAD (Canadian Dollar)

Minor and Exotic Currencies in Forex

Minor or Exotic in Forex are currencies that are not as widely traded as the majors. These currencies are considered less stable and less liquid than the majors, and they may be more affected by political and economic events in their respective countries.

Minor currency symbols include:

AUD (Australian Dollar)

NZD (New Zealand Dollar)

DKK (Danish Krone)

NOK (Norwegian Krone)

SEK (Swedish Krona)

KRW (South Korean Won)

TRY (Turkish Lira)

HKD (Hong Kong Dollar)

INR (Indian Rupee)

ZAR (South African Rand)

BRL (Brazilian Real)

IDR (Indonesian Rupiah)