Forex Slang

Loonie

Forex slang for the Canadian Dollar (CAD) or USD/CAD currency pair.

Definition

Loonie is trader slang for the Canadian Dollar (CAD) and the USD/CAD pair. The nickname comes from the common loon bird depicted on Canada's one-dollar coin. Canada's economy is heavily tied to oil exports.

How It Works

"Buying the Loonie" = going long CAD (short USD/CAD)
"Selling the Loonie" = going short CAD (long USD/CAD)
Note: USD/CAD quote - higher = weaker CAD
Strongly correlated with crude oil prices

Trading Tips

Watch WTI crude oil for direction

Most active during North American session

Bank of Canada rate decisions cause volatility

Related Terms

Back to Glossary

Start Trading

Put Your Knowledge Into Practice

Compare regulated brokers and find the best one for your trading style.

Compare Brokers Browse Glossary