In forex trading, the most common trading instrument is currency pairs. Almost all traders choose to trade currency pairs. However, there are more than 100 currency pairs being traded in the market everyday. How do you know which one is good and which is not? Today, I’m going to show you the 10 most common currency pairs chosen by traders all over the world. The number of traders choosing them can guarantee the quality of those pairs.
WHAT ARE CURRENCY PAIRS?
When you trade a currency pair, you’re paying a country’s currency for another country’s currency. For example, you buy the pair EUR/USD. The first one (EUR) is called the Base currency, and the other (USD) is called the Quote currency. You buy Base currency with Quote currency.
Now, the most common currency traded all over the world are USD (U.S. dollar), EUR (the Euro of Europe), GBP (the English pound), CAD (Canadian dollar), CHF (the Swiss franc), AUD (Australian dollar), NZD (New Zealand dollar), and JPY (Japanese yen). They are put randomly by me.
Currency pairs containing US dollar
Of course, all currencies from all countries in the world can be traded in the forex market. However, some currency pairs are more favored by traders. And most of them contain USD as either the Base currency or the Quote currency.
The most common pair chosen by traders recently is the EUR/USD, but there are some other pairs (including USD) coming close from behind like:
- USD/JPY. You buy US dollar with the Japanese Yen.
- USD/GBP. You buy US dollar with the United Kingdom pound. This pair’s nickname is the pound-dollar.
- USD/CHF. You buy the US dollar with the Switzerland currency. This pair’s nickname is the dollar swissy.
- USD/CAD. You buy the US dollar with the Canadian dollar. This pair’s nickname is the dollar-loonie.
- AUD/USD. You buy the US dollar with the Australian dollar. This pair’s nickname is the Aussie dollar.
- NZD/USD. You buy New Zealand dollar with the US dollar. This pair’s nickname is the kiwi dollar.
Currency pairs not containing US dollar
Of course there are other pairs that don’t include US dollar and are chose by many traders. Out of those pairs, the most common one is EUR/JPY.
10 MOST COMMON PAIRS BY TRADING VOLUME
Based on the overall liquidity we gathered from various brokers, we have picked out 10 most common currency pairs chosen by traders worldwide. Below is the list of the top 10:
Now you know the most common currency pairs in the market. A huge number of traders choose to trade them because they are stable and the quotes are good, which make them safer for trading. Before choosing a currency, make sure you care for the economic status of that country because it affects the value of that currency a lot. It’s better to choose a currency from your country because you usually get the hot news first hand.
Synthesized by top4forexbrokers.net