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
1
Watch WTI crude oil for direction
2
Most active during North American session
3
Bank of Canada rate decisions cause volatility
Related Terms
Start Trading
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.