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Fiat Money

Definition of Fiat Money

What is fiat money?

Fiat money is the term given to most currencies that are established as legal tender by governments, without being rooted in a physical commodity, such as gold or silver.

How does one use fiat money?

The very basis of online trading, specifically forex trading, whether major currency pairs, minor pairs or exotics, is centered around the strength of fiat currencies to one another. Each currency’s value can be affected by a plethora of external factors, but the most consistent factor may be the faith that the general public has in the strength of that particular currency. For example, if the various economic realities in the United Kingdom make investors question the strength of the British pound, then the GBP value against other currencies – specifically the euro and the USD will drop, as investors shy away from relying on what they see as a weak fiat currency. Gone are the days when that value would be linked to the price of gold, so the less faith the public has in a currency – and the higher the inflation rate of that currency – the lower its intrinsic value may fall.

Other Terms From - F -

Federal Reserve Bank Fiat Money Fifty Two (52) Week High/Low Financial Conduct Authority (FCA) Financial Instrument Financial Report Financial Strength Flat Foreign Exchange Foreign Exchange Market Forward Forward Contract Free Margin Front Fee Futures Contract Futures Market FWB

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. You do not own, or have any interest in, the underlying assets. Fortrade Canada Limited is an Order Execution Only broker, and does not provide investment advice or recommendation. Fortrade is a member of the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF). Fortrade Canada Limited is authorised to provide CFD trading services in all provinces in Canada except Quebec. Residents of Alberta province are required to be Accredited Investors to trade CFDs.

CFDs are complex and highly speculative instruments, which come with a high risk of losing money rapidly due to leverage.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing all your invested capital.
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Be aware, as a retail client you can lose all, but not more than the balance of your trading account due to Fortrade’s negative balance protection. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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