Loonie

AAA

DEFINITION of 'Loonie'

Colloquial term that refers to the $1 Canadian coin, and also to the Canadian dollar in forex markets. The loonie derives its name from the picture of a solitary loon on one side of the coin.

INVESTOPEDIA EXPLAINS 'Loonie'

The loonie was introduced in 1987 as a cost-saving measure to replace dollar bills. The 11-sided coin is made of aureate bronze, and was designed by noted wildlife artist Robert-Ralph Carmichael. The widespread acceptance of the $1 loonie led to the introduction of the $2 "toonie" in September 1995.

The loonie is among the top 10 most widely traded currencies in forex markets. Thanks to Canada's burgeoning exports of energy and commodities, the loonie was among the best-performing currencies against the U.S. dollar in the first decade of the new millennium.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Stocky

    A slang term used by forex traders for the Swedish krona, which ...
  3. Currency

    A generally accepted form of money, including coins and paper ...
  4. Greenback

    A slang term for U.S. paper dollars. Greenbacks got their name ...
  5. Bank Of Canada - BOC

    The central bank of Canada, that came into existence after the ...
  6. Aussie

    Slang term that is used to refer to the Australian dollar.
Related Articles
  1. Forex Strategies

    Canada's Commodity Currency: Oil And The Loonie

    When the price of oil goes up, don't worry about how much gas is going to cost - get even by making a play on the Canadian dollar.
  2. Forex Education

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  3. Forex Education

    Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.
  4. Forex Education

    The Pros And Cons Of A Strong Loonie

    The fundamentals are still in place, but some analysts predict more movement against currencies other than the USD.
  5. Personal Finance

    What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  6. Forex Education

    Why Things Are Getting A Little Loonie

    The Canadian dollar has reached parity with the U.S. dollar. Find out how this affects you.
  7. Forex Strategies

    How do I create a Forex Range-Bound trading strategy?

    Discover how to create a range-bound trading strategy with forex currency pairs, and learn which kinds of pairs are most conducive to ranges.
  8. Chart Advisor

    Trade A Surging U.S. Dollar With These 3 ETFs

    With ETFs it's now possible for the average trader to gain exposure to lucrative currency movements. Here are a few options to consider.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Forex Strategies

    What are common strategies traders implement when identifying a Bearish Engulfing Pattern?

    Learn how to spot a bearish engulfing pattern, and learn some of the trading strategies you can implement to take advantage of bear momentum.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center