Currency
Money issued by a government, the asset bought and sold in the forex market.
Quick answer
Currency is government-issued money, the underlying asset traded in every forex pair.
Definition
Currency is money issued by a government and accepted as payment within its borders. In forex it is the underlying asset every pair trades, priced one against another. Each currency carries its own central bank policy, interest rate and economic story, which is what moves the rate.
How It Works
- Each currency has a central bank and interest rate
- Pairs price one currency against another
- Policy and rates drive currency value
Trading Tips
1
Learn the drivers of the currencies you trade
2
Read each pair as two economies, not one symbol
3
Track central bank meetings as the big catalysts
Related Terms
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