Most powerful Forex pairs you should know about

Image source: baremetrics.com

As currencies come and go, the number of currency pairs in the world changes. However, over the years, there have been major pairs that constantly keep their status as the most powerful Forex twosomes in the market. Although they are not necessarily the best to trade, they have the highest liquidity and mostly occupy the highest volume of foreign exchange transactions worldwide.

Basically, currency pairs are classified based on the volume that is traded every day for a pair and not surprisingly, every major one includes the US dollar. Since the United States dollar is the most traded currency by value, pairs that doesn’t include the American currency isn’t considered a major.

Here are the four major currency pairs that tops the list in terms of trading volume:

  1. EUR/USD (Fiber): The Euro and the U.S. Dollar.
  2. USD/JPY (Ninja): The U.S. Dollar and the Japanese Yen.
  3. GBP/USD (Cable): The British Pound Sterling and the U.S. Dollar.
  4. USD/CHF (Swissy): The U.S. Dollar and the Swiss Franc.

These top pairs as mentioned above have the characteristics of having very liquid markets, actively traded every business day, for 24 hours. Furthermore, these pairs, including combinations within the given currencies, account for over 95% of all projected Forex trading performance.

However, while everyone wants to focus on the major pairs as a safe strategy, analysts believe that considering minor pairs (pairs that do not include USD) should be a part of everyone’s trading tactic. Even if it’s more common to put your money on the traditional assets, there are still other pairings at your disposal. In addition, having more options can prevent you from overtrading and from making other unwise trading decisions.

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