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Each forex is represented by a 3-letter code, with the first two typically referring to the nation and the third referring to the forex – for example USD for the US dollar, CAD for Canadian dollar and NOK for Norwegian krone. There are exceptions, such as EUR for the euro and MXN for the Mexican peso.

If you have ever traveled overseas, you have made a forex transaction. Take a visit to France and also you convert your pounds into euros. When you do this, the forex alternate charge between the two currencies-primarily based on supply and demand-determines how many euros you get for your pounds. And the alternate rate fluctuates repeatedly.

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