What are the most traded forex pairs in the world? Top 10 Forex pairs
Top 10 Forex Trade pairs: Forex is the largest trade market by far, open five days a week, 24 hours a day. It’s also the most volatile market, which means there’s more potential for profit.
The US dollar and/or other world currencies are included in a forex currency pair.
Currencies are usually exchanged in pairs because when you buy or sell one, you must also purchase or sell another. There is a base currency and a quote currency in every currency pair; the base currency comes first, and the quote currency appears next.
The base currency is the initial currency in the pairing, such as the US dollar in USD/JPY. The second currency, in this case, the Japanese yen, is referred to as the quote.
In most cases, the base currency will be the trader’s local currency. A forex currency pair’s price is an indication of how much of the quotation currency is required to purchase one unit of the base currency.
In the currency pair EUR/USD, for example, the base currency is EUR, and the quote currency is USD.
When the price is given was 1.5000, that indicates that one euro is worth the US $1.50.
What are the different types of forex pairs?
In general, forex pairings are classified into three types. The major currencies, commodity currencies, and cross currencies are as follows:
- The most-traded currencies on the market are the major currencies. Although opinions range on the number of significant currency pairings, most lists include USD/JPY, GBP/USD, EUR/USD, and USD/CHF.
- Commodity currencies are currency pairings whose value is strongly linked to a commodity such as oil, coal, or iron ore. This list includes commodity currencies such as AUD/USD and USD/CAD.
- Currency pairings that do not contain the US dollar are known as cross currencies. EUR/GBP and EUR/JPY are two cross currency pairs that have made it into the top 10.
List of Top 10 Most traded forex pairs in the world
- Euro/US dollar – EUR/USD
- US dollar/Japanese yen – USD/JPY
- British pound/US dollar – GBP/USD
- Australian dollar/US dollar – AUD/USD
- US dollar/Canadian dollar- USD/CAD
- US dollar/Chinese renminbi – USD/CNY
- US dollar/Swiss franc – USD/CHF
- US dollar/Hong Kong dollar – USD/HKD
- euro/British pound sterling – EUR/GBP
- US dollar/South Korean won – USD/KRW
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