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Most Popular Forex Pairs

Published on 28 Sep, 21 by Raja Shazli

This was because there was a large cable that ran across the floor of the Atlantic Ocean that connected the UK and the US. When you think about it there are over 180 currencies to exchange too. Regarding the FX market, there are four main CEE currencies to be aware of. So when paired with the U.S. dollar, USD/SEK is read “dollar stockie” and USD/NOK is read “dollar nockie”. This meant that these countries now had one currency, with the same monetary value, with the exception that each of these countries minted its own coins.

You can start with a minimum deposit of $10 on our Micro account, and $500 on our Advantage and Advantage Plus accounts. Take your first steps into FX trading with our comprehensive beginners guide for Forex! Take control of your trading with powerful trading platforms and resources designed to give you an edge. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing.

Cross Currency Pairs

The major cross currency pairs reflect the most liquid of trades that don’t include the US dollar in the forex market. Despite that, with even just a cursory glance at the currency pairs--GBP/EUR, EUR/CHF and EUR/JPY--you’ll notice that all still include the currencies from the major list. Between the size of the economies backing the British pound or EU’s euro and the stability of the franc and the yen, it’s understandable why these cross currencies are so heavily traded. The movement in major forex pairs is often more predictable within the FX market, due to the vast amount of knowledge and research that traders have collected over the years.

What are the 8 major pairs in forex?

  • EUR/USD (Euro Dollar)
  • GBP/USD (Pound Dollar)
  • USD/CHF (Dollar Swissy)
  • USD/JPY (Dollar Yen)
  • AUD/USD (Aussie Dollar)
  • NZD/USD (Kiwi Dollar)
  • USD/CAD (Dollar Loonie)

In case you hadn’t noticed, all of the above currency pairs include the US dollar, the world’s reserve currency. The foreign exchange market, commonly referred to as the forex market, is based on the trading of one currency for another. The exact amount of one currency that is exchanged for an amount of a second currency is determined by the value of each. Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary. A currency pair is made of up to two currencies traded in the forex market.

In fact, making this mistake can quickly lead to forcing trades and overtrading. If it never sleeps, does it have any special features during the nighttime? In this article, we explain trading nightlife and show the best currency pairs for this time. You will learn what subtleties exist in night trading and what you need to be prepared for.

Cross Currency Pairs (A.K.A Minors)

In general, markets with high liquidity exhibit smaller spreads than less frequently traded markets. The world’s largest foreign exchange market is based in London, with 37% of all forex turnover made there. Another thing worth noting in the working of currency pairs is the pairs’ Currency Correlations. A Currency Pairs’ Correlation is the similarities between several pairings, and it useful when determining what pair to buy or sell.

Which currency pair has the highest spread?

The EUR/USD and GBP/USD exhibit the best ratio from the pairs analyzed above. The USD/JPY also ranks high among the pairs examined. Even though the GBP/USD and EUR/JPY have a four-pip spread, they outrank the USD/CAD, which has an average of a two-pip spread.

Stay on top of upcoming market-moving events with our customisable economic calendar. The strength of a country’s economy and the level of FDI are often directly correlated. For example, if the supply of oil was increased by OPEC, oil’s price would likely fall which, in turn, would bring down the value of the Canadian dollar. Similarly, since oil is priced in US dollars, any fall in the value of oil will likely see a reciprocal strengthening of the US dollar. JPY is the currency abbreviation or the currency symbol for the Japanese yen , the currency of Japan. The USD is the abbreviation for the U.S. dollar, the official currency of the United States of America and the world's primary reserve currency.

Understanding major currency pairs

A wide spread between currencies indicates volatility, whereas a narrow spread means that there is a smaller difference between the bid and ask price. Most traders prefer a tighter or narrower spread, as it indicates lower volatility but high liquidity. Our forex trading page has a breakdown of all spreads and margins that we offer on our currency pairs.

major forex pairs

Hantec Markets does not offer its services to residents of certain jurisdictions including USA, Iran and North Korea. Open a demo account to trade risk-free with £10,000 worth of virtual funds. IG International Limited is part of the IG Group and its ultimate parent kelly criterion book company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited. The value of the Canadian dollar is largely tied to the price of oil because the commodity is Canada’s main export.

Minor Pairs

Alternatively, a trader could sell the EUR/USD pair - also known as ‘going short’ - if they believe the value of the euro will go down relative to the dollar. Read more examples of short selling currenciesusing spread bets and CFDs. As the world’s second biggest currency, the euro is another key pairing with the Japanese yen. It is heavily influenced by the volume of JPY carry trades, as well as market sentiment. GBP/EUR is a key currency pair that explores the relationship between the British pound and the euro.

This is why it makes sense to compare the currencies and value them against each other. Therefore each trade is counted twice, once under the sold currency ($) and once under the bought currency (€). The percentages above are the percent of trades involving that currency regardless of whether it is bought or sold, e.g. the U.S.

Cross pairs can provide trading opportunities when the majors are presenting less favourable conditions. The majors are the most liquid and widely traded in the forex market. Because these pairs have the largest volume of buyers and sellers, they also typically have the tightest bid and ask spreads. The spread is the difference between the buy and the sell price. Most traders would agree that the most profitable forex pairs to trade include the above seven major forex pairs.

What Makes a Good Currency Pair?

The three main types of currency pairs are majors, minors and exotics. The major currency pairs are often the most popular to trade, as they are the most liquid. Minor currency pairs are ones which leave out the United States dollar, and they are normally less liquid. Examples include the euro and Swiss franc (EUR/CHF), Canadian dollar and Japanese yen (CAD/JPY), or pound sterling and Australian dollar (GBP/AUD).

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