Simple answer is money. Because you do not buy a specific character, so the type of transaction is confusing. Imagine that buying one currency you buy a share in a particular country, like buying shares of a company.
The price of the currency is a direct reflection of what the market assessment of current health and future of the economy that country.
When you buy the yen, you are essentially buying a share of the Japanese economy. You bet the Japanese economy will get better in the future. Once you sell those purchased earlier return to the market, you hope to get profit.
In general, the exchange rate of a currency versus other currencies is a reflection of the economic situation of the country, compared to a national economy other.
As soon as you have finished the course learn from us, be sure that you will be very excited to start working with currencies.
The major currency pairs
Currency symbols are always three letters, the first two letters identify the name of the nation and 3rd digit specifies the name of the national currency there.
For example with NZD. NZ New Zealand represents, while D is instead Dollar. It is easy to recognize.
The currency pair in the picture above is called "key pairs" (majors) because they are traded most in the world.
You should also know that the "buck" is not only the name of the dollar, it is also alternatively known as: greenbacks, bones, benjis, Benjamins, cheddar, paper, loot, scrilla, cheese, bread, moolah, dead Presidents, and cash money.
Additionally, in Peru, there is a nickname for the American dollar is Coco, a pet name of George Washington.
