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What is traded in forex?

Free Forex School


The simple answer is MONEY. Because you’re not buying anything physical, forex trading can be confusing. In forex trading, when you buy, say, the US dollars , you are basically buying a “share” in the USA economy.

You are betting that the USA economy is doing well, and will even get better as time goes. Once you sell those “shares” back to the market, hopefully, you will end up with a profit.

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country’s economy, compared to other countries’ economies.
By the time you graduate from this Free Forex School , you’ll be eager to start working with currencies.


The currencies included in the chart above are called the “majors” because they are the most widely traded ones.
We’d also like to let you know that “buck” isn’t the only nickname for USD.