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This pair rises when the U. S. dollar increases in value against the Canadian dollar, so it is a bet on the U. S. dollar. The other option is to use derivative products, such as options and futures, to profit from changes in the value of currencies.
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Seeing your trades in black and white can be a sobering experience and adds a dash of reality to what can just seem like paper transactions.
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It’s because the foreign currencies are traded in pairs that the foreign exchange market doesn’t give a currency’s fixed rate but rather determines the value of that particular currency by setting the market rate of one currency if it was paid for another for example 1 USD is worth Y JPY.
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