Currency
A medium of exchange used to facilitate transactions.
Legal tender issued by a central bank or government.
Currencies
Plural form of currency.
Different forms of money used in different countries.
Examples: US dollar, Euro, Japanese yen
Forex (Foreign Exchange)
The global market where currencies are traded.
Facilitates the exchange of one currency for another.
Also known as the FX market.
Currency Trade
The buying and selling of currencies on the forex market.
Traders speculate on changes in currency values to make a profit.
Involves currency pairs, such as EUR/USD or GBP/JPY.
Related Terms:
Exchange rate: The price of one currency in terms of another.
Central bank: The institution responsible for managing a country’s monetary policy and issuing currency.
Hedging: Using financial instruments to reduce the risk of currency fluctuations.
Speculation: Making financial decisions in anticipation of future price movements.
Spot market: The market where currencies are traded for immediate delivery.