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What currency pairs are most traded on the Forex market?

Posted skrimon

There are seven primary currency pairs on the forex market. Other parentheses include crosses and exotic currencies, which are rarely traded and are all relatively illiquid (eg, not easily exchanged for cash).

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-topasiafx

Although the foreign exchange market is often seen as a game of bankers, currencies can sometimes be a big diversification for portfolios that may have touched a little habit. This is a market that can also offer extraordinary opportunities when other global forums enter flagging.
Let’s take a quick look at eight currencies every trader or investor should know.
  • U.S. Dollar (USD) …
  • European Euro (EUR) …
  • Japanese Yen (JPY) …
  • British Pound (GBP) …
  • Swiss Franc (CHF) …
  • Canadian Dollar (CAD) …
  • Australian/New Zealand Dollar (AUD/NZD) …
  • South African Rand (ZAR)

A lot of brokers accepting various currencies for real or automated trading. So let’s read the charecter of currency below.

MAJOR PAIRS
The main pair is the most frequently traded and accounts for almost 80% of the trading volume on the forex market.
These currency pairs usually have low volatility and high liquidity.

They are related to a stable and well-managed economy, are less susceptible to manipulation and have smaller spreads than other partners.

CROSSES
Cross currency pairs – Crosses – are pairs that are not included in USD
Historically, Crosses was converted first to USD and then to the desired currency, but is now offered for direct exchange.

The most frequently traded comes from minor currency pairs (eg EUR / GBP, EUR / JPY, GBP / JPY); they are usually less liquid and more unstable than the major currency pairs.

EXOTIC PAIRS
Exotic is a currency from a developing economy or smaller, paired with a Major.

Compared to Crosses and Departments, Exotic is far more risky to trade because they are less liquid, more volatile, and more vulnerable to manipulation.

They also contain wider spreads and is more sensitive to sudden changes in political and financial development.

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