So what is traded in the Forex market? The simplest answer to that question is money. You are buying one currency, and selling another. Due to the fact that you have to buy money with money, Forex trades are done in currency pairs such as:
USD/YEN (United States Dollar / Japanese Yen)
GBP/AUD (Great Britain Pound / Australian Dollar)
You had to pay $901.80 USD. Now, 1 week later, you notice that the FX Quote was USD/AUD = 1.1057, and wanted to sell back the 1,000 AUD you bought.
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