Currency symbols definition
A currency symbol is a graphical representation of a currency’s name, often used when referring to an amount of money. Currencies like the US dollar ($) and the British pound sterling (£) are immediately recognized throughout the world by their symbols.
In forex trading, you may also see three-letter codes used to abbreviate a currency. This shorthand often appears in international markets instead of using formal currency names.
What do currency symbols mean?
Currency symbols mean the same thing as currency names – they’re just a shorthand way of writing a currency.
Some are unique to a single currency, such as € (euro) and ¥ (Japanese yen). Others relate to the currencies of several countries, such as $ (dollar), which is used in the United States, Canada, Australia, and more.
When this is the case, the symbol may include a country prefix, such as CA$ for Canadian dollars or AU$ for Australian dollars.
Currency prices always get quoted in pairs using codes. The exchange rate between the euro and the US dollar, for example, is written as EUR/USD. If the rate is 1.20, then it costs $1.20 to buy €1.