Currency
Money issued by a government, the asset bought and sold in the forex market.
Currency is government-issued money, the underlying asset traded in every forex pair.
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
Learn the drivers of the currencies you trade
Read each pair as two economies, not one symbol
Track central bank meetings as the big catalysts
Currency Example
Say Turkey inflation hits 60% while the lira slides for the fifth straight year. Citizens convert pay to dollars the same day, accelerating the fall. A currency is a vote on its issuer, cast daily by millions.
How Traders Use Currency
Trade currencies as stories about countries, not lines on charts. Rates, politics and trade balances write the story. Price just narrates. When the story breaks, exit first and analyze later.
Related Terms
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