Every country in the world has a currency of some sort, whether it is the almighty United States Dollar or the humble Cambodian Riel. These different world currencies have to have a value, in the past all currencies where valued by comparison to the international market price of gold or what was known as the gold standard and countries would hold their reserve currency in gold. In more recent times as world economies have grown and become more complicated, this no longer necessary and most countries hold their reserve currency in US Dollars although since the introduction of a single European currency (the Euro), some countries (not only the European ones) are using this as their reserve currency, or often a combination of the two. Get free daily Forex trading videos.
Foreign currencies and foreign currency prices are often referred to as Forex or FX for short. Because currencies are priced by comparison to another currency they are always shown as currency pairs, so there the major currency pairs such as US Dollar against the Japanese Yen (USD/JPY) and the Great British Pound (Sterling) against the Euro (GBP/EUR) for example. The large economic zones currencies are the most traded by international banks and are known as the major pairs, they include other currencies such as the Swiss Franc, the Australian Dollar, and Canadian Dollar.
These major pairs are not only exchanged internationally for reasons of trade and commerce but are actively traded for profit by bank and hedge funds. Other currencies are traded too, but not nearly as commonly. These are known as the minor pairs and included such currency pairs as the Polish Zloty against the Euro or the Thai Baht against the Japanese Yen. The rest of the world’s currencies are rarely traded for profit and are simply moved around according to import and export based businesses and tourism. These pairs are known as the exotics and include such pairs as the Egyptian Pound against the Indian Rupee and countless other examples. These exotics often do no have a direct exchange that is easy to find, some bank will not even facilitate the exchange and in is normal to have to exchange from one currency into a major currency like the US Dollar and then from the dollar into the other currency. Which ever pair you are looking for, you should be able to find most forex currency prices at the bank or online.