With the forex trading currency market operating 24 hours a day and with simultaneous transactions of buying and selling currencies, it is not a surprise that it is represents the most liquid market in the world. With the daily transactions crossing $1 trillion now, all the buying and selling of forex currency pairs is handled electronically. As a trader, it is very y essential for you to be well aware of the main currency pairs in forex. This article will discuss and throw light on the popular forex currency pairs. Read on.
To make matters simpler, forex trading currency markets refer to trading currencies by pairs. In the forex currencies are traded in pairs and a currency quote represents these two pairs of forex trading currencies, for example, EUR/USD. The first currency is known as base currency while the second currency is called quote currency. Many currency pairs in forex are used all across the globe. But actually there are only a few major forex currency pairs that are traded actively. In the forex trading currency market, it is only the most economically stable and liquid forex currency pairs that are in demand in ample quantities. In addition, forex trading currency markets have given most currency pairs nicknames or abbreviations.
Forex trading currency pairs are divided into major and minor currencies. The major currencies which are regularly traded in forex are USD, EUR, JPY, GBP, CHF, CAD, AUD and NZD. All the other currencies are referred to as minor currencies. There are around 18 major forex currency pairs, which as a result of their overall liquidity are traditionally quoted. These include USD/CAD, NZD/USD, GBP/CHF, AUD/USD, EUR/JPY, EUR/USD, EUR/CHF, USD/CHF, EUR/GBP, GBP/USD, AUD/CAD, EUR/CAD, AUD/JPY, EUR/AUD, GBP/JPY, USD/JPY, CHF/JPY, and AUD/NZD.
You will observe these popular forex currency pairs representing the major share of the trading volume in the forex. With a whole wide variety of forex currency pairs to choose from, this makes trading less complicated.