Money is the simple answer. FX trading is the buying of one currency at the same time as the selling another currency. As a result currencies are always traded in pairs, for example the GB pound and the US dollar (GBP/USD) or the Euro and the Japanese Yen (EUR/JPY).
The 7 most heavily traded currencies are known as the majors and include; GB pound (GBP), Euro (EUR), US dollar (USD), Canadian dollar (CAD), Japanese Yen (JPY), Swiss Franc (CHF) and the Australian dollar (AUD).

The sheer volume of trading completed in the FX market makes it the most liquid and most efficient market available. Because of the magnitude of the volumes traded, it is virtually impossible for individuals or companies to influence the exchange rate of the major currencies through any form of open market operations. No single individual has the resources required to manipulate pricing through targeted buying or selling on the market. The price of a currency is a direct reflection of what the market thinks about the current and future health of that economic zone.

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