What is traded on the Foreign Exchange?

Forex trading is the simultaneous buying of one currency and the selling of another
or the buying and selling of money from one country against the money from
another country. Currencies are traded through a bank, a broker or a dealer, and
are traded in pairs; for example the Euro and the Us Dollar (EUR/UsD) or the Us
Dollar and the Japanese Yen (UsD/JPY).
Unlike other financial markets, the FX spot market has neither a physical location
nor a central exchange. (Except for a small portion of the world’s daily volume
which is traded on the Chicago Mercantile Exchange). The currency market is
considered an Over-the-Counter (OTC) or ‘interbank’ market, because the entire
market is run within a network of banks and brokers, continuously over a 24-hour
period. (OTC implies that you have to trade with a specific bank or broker when
you buy and sell a currency)

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Re: What is traded on the Foreign Exchange?

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