E The Role Of CAD In The Forex Market

Forex trading is one of the biggest financial markets and it can be accessed very easily by anyone for 24 hours a day. Forex trading, to say it as simply as possible, is the process of selling one currency, while, at the same time, buying another. 

There are many currency pairs available on the market, and they are mostly divided into three categories. Major currency pairs, cross currency pairs, and exotic currency pairs. The most popular ones for trading are the major currency pairs, which include pairs like USD/EUR, USD/GBP, USD/CAD, etc. 

On the Forex trading market, there are 8 currencies that account for over 80 percent of the whole market, and Canadian Dollar, also known as loonie, is one of these major currencies. Around the world, loonie is known to be the sixth-most held currency as a reserve, which makes it a very important part of the Forex trading market.

Most of this is thanks to the general stability and economic potential of Canada as well as its close proximity to the world’s largest economy. Due to such a reputation in the FX market, many companies have decided to move directly into major Canadian cities like Toronto and Vancouver. However, the most important corporate migrants would be the current Forex brokers in Canada which had previously headquartered in countries such as the United Kingdom or France. Canada is slowly carving itself a nice chunk of the FX market for future investments.

The Investment Industry Organization of Canada (IIROC) is the main regulatory body of the country, making sure that the traders can stay safe and secure while investing in the Forex market. 

How is loonie supported? 

Generally, national currencies around the world are regulated by the national banks of the country. For loonie, it is the Bank of Canada, which makes sure to find a balance between policies which promote employment in the country and guarantees the stability of economic growth.

In 2017, Canada was ranked number 10 when it comes to GDP. In recent years, the economy of the country has grown a lot and managed to create a very balanced and comfortable environment for its local currency. 

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