Best Forex Pairs to Trade

DTTW™ is proud to be the lead sponsor of TraderTV.LIVE™, the fastest-growing day trading channel on YouTube. Canada is the third most important trading partner of the United States. The two countries share a border and are the most successful North American countries.


Forex trading success is down to profit-making, and one of the biggest factors in yielding the best profits is down to the forex pairs you choose to trade. A currency pair is two different currencies, with one currency’s value being quoted against another. The first listed currency is called the base currency, and the second is the quote currency. The US Dollar, Euro, Yen and the other popular currencies combine as pairs to make the Majors, as described earlier in the guide.

The exchange rate of EUR/USD is determined by a number of factors, not least of which are the interest rates set by the European Central Bank and the US Federal Reserve . This is because the currency with the higher interest rates will generally be in higher demand because higher interest rates give a better return on their initial investment. If for instance, the ECB had set higher interest rates than the Fed, it is likely that the euro would appreciate relative to the dollar. Currencies are always traded in pairs because when you buy or sell one currency, you automatically sell or buy another. In every currency pair, there is a base currency and a quote currency – the base currency appears first, and the quote currency is to the right of it.

NZD/USD. This currency pair sets the currency of New Zealand against the US dollar, and it is referred to as the kiwi dollar. AUD/USD. This currency pair sets the US dollar against the Australian dollar and is referred to as the Aussie dollar. USD/CHF. This currency pair sets the US dollar against the Switzerland currency. In turn, expensive oil means that the Canadian dollar will likely strengthen due to the close ties between the Canadian dollar and the price of oil.

Top currency pairs to trade

No one in Zerodha has got a clue as to when it is going to start. 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. Generally, traders will choose to trade the EUR/USD or USD/JPY because there is so much information and resources available about the underlying economies.

A reliable e-wallet in your possession is the first and most important step towards maximizing your efficiency and success in forex trading. The strength of GBP/USD comes from the strength of the UK and US economies. Economic growth drives the strength of currencies so in this case if the UK economy is growing at a faster rate than the US, the pound will strengthen against the dollar and vice versa. GBP/USD pair accounts for 9.6% of all daily forex transactions. The quotation of two different currencies being traded, by which the value of one is compared to the value of the other, is called a ‘currency pair’. The Australian Dollar was introduced in 1966 to replace the Australian Pound and is the currency of the Australian Commonwealth .

most traded currency pairs

Using an e-wallet like STICPAY, money can be transferred immediately with either no or incredibly low fees and you can use 29 fiat currencies and various cryptocurrencies. And with oil prices in the world markets are in USD, Canada is able to earn a large supply of USD through its oil exports. With this in mind it means that if the price of oil increases, the CAD will likely strengthen against the USD.

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FXCM Markets Limited (“FXCM Markets”) is incorporated in Bermuda as an operating subsidiary within the FXCM group of companies (collectively, the “FXCM Group” or “FXCM”). FXCM Markets is not required to hold any financial amarkets mt4 services license or authorization in Bermuda to offer its products and services. Our proprietary trading platform provides powerful analytics tools for chart traders and straightforward capabilities for new traders.

We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We’re also a community of traders that support each other on our daily trading journey. Aside from the three main categories of currency pairs, there are other “groups” of currencies that are thrown around in the FX world which you should be aware of. Exotic currency pairs basically refer to currency pairs in developing countries most of the time. Various factors can impact the price movements of forex pairs, including the strength of a country’s economy, geopolitical events, and monetary policy.

Which currency pair is most predictable?

1) AUD/USD: The Aussie dollar has been in the top rankings of predictability for several years, and for good reasons. This currency pair tends to travel in uptrends and downtrends which are easily defined, and when it moves out of them, the change of direction is abrupt and clear.

While the major currency pairs make up the majority of the market, you shouldn’t ignore the minors – also referred to as Cross Currency Pairs. The minor currency pairs account for all the other combination of major markets such as; EUR/GBP, EUR/CHF and GBP/JPY. You can trade nearly 100 currency pairs with easyMarkets, including major, minor and exotic pairs. Known as “The Gopher”, this currency pair is one of the most popular pairs amongst traders. This means that traders can buy and sell the currency pair without experiencing significant fluctuations in the exchange rate.

These pairs are not as frequently traded as majors or minors, so they tend to have higher spreads. The strength of the Canadian dollar is closely reliant on the price of oil and gas because of the high amount of GDP they account for in the Canadian economy. The USD/JPY currency pair consists of the US dollar and the Japanese Yen. It’s the second most traded forex pair on the market, accounting for 13.2% of all daily forex transactions. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider.

The Most Popular Forex Pairs

In simpler terms, this currency pair indicates the number of Japanese Yen required to purchase one US dollar. Generally, USD/JPY has very high liquidity, however, JPY can also be viewed as a ‘safe haven’ currency during periods of global economic uncertainty. This Forex pair falls under the Majors category, and due to its high liquidity, it tends to be somewhat less volatile than other currency pairs.

Decisions made by central banks can have a major impact on currencies. For instance, a change in a country’s interest rate can impact the appreciation or depreciation of a currency pair. When a central bank raises interest rates, it can increase the value of a country’s currency, whereas lower interest rates can decrease the value of a country’s currency. In case you hadn’t noticed, all of the above currency pairs include the US dollar, the world’s reserve currency.

What is the most volatile forex pair?

The most volatile currency pairs are ‘exotics,’ although few traders choose to trade them because of their unpredictability and high risks. Less but still volatile are AUD/JPY, AUD/USD, EUR/AUD, NZD/JPY, GBP/AUD, GBP/NZD. The least volatile currency pairs are EUR/CHF, EUR/USD, AUD/CHF, USD/CHF, EUR/CAD, etc.

Yuan is referred to as CNY only when it is traded in the onshore Chinese market. CNH has traditionally not been as tightly controlled as CNY by the Chinese government, which means it can be more volatile. This volatility can make it a better choice for speculative trading.

Top 10 most traded currency pairs

EURUSD signifies the number of US Dollars needed to purchase one Euro. EURUSD is seen as the most important Forex pair as USD and EUR are the two most-traded currencies globally and also the first and second-largest reserve currencies. The Euro was launched in 1999 originally replaced 11 national currencies and now is used in 19 European countries by over 300 million individuals. When you trade Forex, you are anticipating that one currency will fall or rise relative to another currency. Foreign exchange trading is a trade of “relative value”, meaning that you look for one currency to depreciate or appreciate in value relative to another currency.

Imagine each currency pair constantly in a “tug of war” with each currency on its own side of the rope. Learn how to trade forex in a fun and easy-to-understand format. Therefore each trade is counted twice, once under the sold currency ($) and once under trade99 review 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. Dollar is bought or sold in 88% of all trades, whereas the Euro is bought or sold 32% of the time.

Try and get hold of Alaxender Elder;s ‘Trading for a living’ book. An average trader cannot achieve financial freedom by trading, at the most he will entertain himself by placing few trades here and there. One needs to elevate himself and achieve a higher degree of understanding of markets. This happens by constantly learning and practicing what you’ve learned. Its almost 8 months now….and Zerodha is yet to start the cross currency trading????

FXCM Policies

Much in the same way as the Fed and ECB, the Bank of Japan sets the interest rates for the Japanese economy which, in turn, affects the value of the yen relative to the US dollar. Trading forex on margin swissquote forex review carries a high level of risk and may not be suitable for all investors. To some, more experienced traders would see minors as a better option as they tend to react to technical analysis slightly better.

most traded currency pairs

Conventional financial wisdom suggests that it takes a lot of money to participate in the markets. That is the beauty of the forex ― you don’t need to be a millionaire to trade. As it pertains to any business ― active trading or otherwise ― profit is the difference between gains and losses minus operating expenses. The beauty of forex trading is that quantifying profit is straightforward because expenses are limited, and gains and losses are easily accounted for. On Kite, chart data for cross- currencies is only available from 27 Feb 2018(launch of cross-currency trading). Any major move in the prices of oil impacts the movement of INR.

Hence it becomes easy for speculators, arbitrageurs and hedgers to trade in USDINR based on the movement of oil prices. For example, in most days, traders receive data from either the EU or the EU countries and from the United States (We touch this point in our “RingTheBell”). By having all this data, they can make solid decisions on how to enter or leave the trades.


Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Past performance of any product described on this website is not a reliable indication of future performance. US dollar – the greenback has always been a safe-haven currency for traders as it is the reserve currency of the world’s largest economy and has the most market liquidity. However, in recent years, the US dollar’s safe-haven status has been questioned, especially during 2020’s Coronavirus pandemic, where it fluctuated. High currency pair liquidity, in turn, enables trades with lower commission costs.

How to start trading?

GBP is the abbreviation for the British pound sterling, the official currency of the United Kingdom and its territories. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. The information in this site does not contain investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Stay on top of upcoming market-moving events with our customisable economic calendar.

In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of the United States economy, the American dollar is the world’s most actively traded currency. Just like the first two most popular currency pairs on this list, the quote price of GBP/USD is affected by the respective interest rates set by the Bank of England and the Fed. The subsequent differential between the interest rates on the pound and the dollar can have a great effect on the price of the GBP/USD currency pair. Trading in the Forex market will always involve the buying and selling of two currencies at a time.

In the case of the AUD/USD currency pair, this means the US dollar would become stronger, so it would cost fewer US dollars to buy one Australian dollar. The GBP/USD is one of the most traded pairs thanks to the volume of business between the United States and the United Kingdom. The global economy is dependent on the highs and lows of different country-specific currencies and their importance. The majors and minors are categorised by popularity and liquidity. It covers the major pairs of forex including USD/JPY, EUR/USD, USD/CHF, GBP/USD, AUD/USD, NZD/USD, EUR/CAD, GBP/CAD, and many more.

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