What is a currency broker?

The object of the currency broker is similar to that of a stock broker, in that he or she seeks to assist investors in making a healthy return from the trading activity. A currency broker may operate as an independent broker or be connected with a brokerage house.

What is a branded currency?

There are also branded currencies, like airline and credit card points and Disney Dollars. These are issued by companies and are used only to pay for the products and services to which they are tied. The exchange rate is the current value of any currency relative to another currency.

What does currency mean?

The term currency refers to the tangible form of money that is paper bills and coins. It's used as a medium of exchange that's accepted at face value for products and services as well as for savings and the payment of debt. What's an Example of Currency? One example of currency is any of the U.S. paper bills you may have on hand.

How does currency trading work?

All currency trading is done in pairs. Unlike the stock market, where you can buy or sell a single stock, you have to buy one currency and sell another currency in the forex market. Next, nearly all currencies are priced out to the fourth decimal point. A pip or percentage in point is the smallest increment of trade.