Most traded currency pairs
Table Of Contents
- Major currency pairs
- Exotic currencies
- Most traded currencies of the world
While working with Forex you may use different trading tools. The most popular brokers offer dozens of currency pairs, as well as precious metals, stock CFD, energy products, etc. A beginner may have a hard time choosing from such a variety, but tell the truth, it’s not a good idea. Most trading items have their distinctive features and volatility characteristics; moreover, one has to understand what is really going on. That is why such trading conditions do not make a good match for a newbie. The best thing you can do is to focus on the most traded tools, such as the most popular currency pairs.
They have many benefits with hardly any shortcomings at all. For instance, trading is done twenty-four-hour, which produces good liquidity (demand and supply), low spreads and foreseeable tools. This allows you to be profitable at all times. Besides, traders know how hard it might be to control several price charts at once. Just leave it alone and focus on the most popular currency pairs – there are only 7 of them at Forex. You can easily monitor 7 charts and be sure to get many trading signals, just because these tools are largely traded around the world.
Major currency pairs
Major world currencies are also called “majors”. They form the most popular currency pairs, that’s why traders do need to watch them closely. At this, you should not track exchange rates only, but also monitor the worldwide economy trades.
- Of course the first place takes US dollar; it is the main world currency. ¬You should know that each and every monitory unit has its own bank code. It consists of 3 letters. The first two of them stand for the country of this currency and the third one is the name of that currency. For instance, American dollar is marked by USD, this means United States Dollar. Almost every currency has its name or nickname and most brokers use slang. They use such unofficial currency names, when talking to each other; doing video tutorials and chatting on forums. That is why you should take notice of the most popular currency pair names, used on Forex. In particular, the first traders nicknamed US dollar “greenback”. They may also call it “buck”.
- European currency, widely used in 17 European countries, has EUR banking code. Euro is the second popular currency of the world. That is why EUR/USD currency pair should be always closely monitored by traders: it tops the list of the most popular Forex currency pairs.
- The next currency is Japanese Yen. This currency has hardly any slang names among the traders. That said Japan and USA have large trading volume, because USA is the main Japanese outlet. That is why currency pair USD/JPY is always traded well, moreover, it offers many opportunities for making money.
- When you learn about the most popular currency pairs, special attention has to be paid to GBP – Great Britain Pound. This currency has a slang name. It is rarely used, but you still need to know it – “cable”. This name appeared when USA and UK had cable connection. GBP/USD is always traded well, so an experienced trader can always count on it to make some profit. The only thing special about this pair is that the marginal security amount is higher than for other widely used currencies.
- The next one on your Forex list of popular currencies is Swiss Franc (CHF). It’s slang name is “Swissy”. Since CHF is the national currency of one of the most stable nations of the world, USD/CHF makes a great trading tool. It mainly attracts large scale investors; nevertheless smaller scale investors also have a chance of making some money in those large streams of deals.
- You should also pay attention to Canadian Dollar (CAD). Traders call it “Loonie” – this term is very popular, so please remember it. Canada’s economy is highly interrelated with USA, that is why USD/CAD currency pair offers many opportunities. Keep in mind that Canada is export oriented country and it greatly depends on oil prices. While using USD/CAD currency pair, you should be monitoring these things.
- The last currency on our list is Australian Dollar (AUD). Traders call it Aussie and this name is widely used.
Some traders tend to experiment and use unpopular trading currency pairs. As it was already mentioned, it can bear certain risks, such as a wide spread. Consequently, scalping and monitoring news is not an easy task to manage; moreover, in this case part of your profit would go to your broker. At the same time, you may benefit from some sound trading strategies as they may provide you with certain amount of profit moving in the same direction. In general, we all should make up our mind and find things we like. Still don’t forget that working with intraday and short termed trading systems may bring profit only with the most popular currency pairs.
Below you may find a list of the most exotic Forex tools with the lowest volatility. Mind that trading those currencies leads to various unpleasant surprises, and each trader has to be careful using such tools.
- Argentine peso (ARS).
- Hungarian forint (HUF).
- Mexican peso (MXN).
- Indian rupee (INR).
- South African rand (ZAR).
Most traded currencies of the world
Finally, you need to know the trading percentage in order to understand value of the currencies. This is another important indicator which will lead you to the most popular currencies and help to gain higher profits on Forex.
- United States dollar (USD) – 84.9%.
- Euro (EUR) – 39.1%.
- Japanese yen (JPY) – 19.0%.
- British pound (GBP) – 12%.
- Australian dollar (AUD) – 7.6%.
- Swiss franc (CHF) – 6.4%.
- Canadian dollar (CAD) – 5.3%.
- Hong Kong dollar (HKD) – 2.4%.
- Swedish krona (SEK) – 2.2%.
- New Zealand dollar (NZD) – 1.6%.
Once you learn about the most popular currency pairs, you may focus your attention on trading them. Beginners, who still have tons of things to learn about trading, should not make things even harder by picking some exotic or low demand Forex tools. Of course, when you get more experienced, you may broaden up your trading tools and create a diversified profile to protect your investments. You may even include stocks of the most popular companies, precious metals, etc.