An Overview of Currencies

Currencies are units of money created in different nations around the world. A currency in this sense is money in any shape or form when in circulation or use as a medium of trade, particularly circulating coins and banknotes. There are four distinct types of currencies, they are the Commodity Currencies (such as the US Dollar), the Domestic Currencies (like the Canadian Dollar), the International Units (such as the British Pound) and the Central Banks (such as the Eurozone). There are also other specialized types of currencies including the Forex Trade Currency.

Most Virtual Currencies work exactly like conventional money, except that they are not issued by governments. Any virtual currency that you see being traded on the Internet or by telephone is a Private Exchange Currency. Private exchanges are the ones that trade directly between two independent parties. When trading on a virtual exchange you are dealing with the values represented by that particular currency. The most commonly traded virtual currency is the US Dollar.

As you can see from this overview of currency trading there are four basic types of currency pairs. Virtual exchange rates between these currencies are determined by supply and demand, which in this case would be the current state of the exchange rate of one particular currency against another. You can learn more about Forex market currency trading through the online courses that I have personally designed.