Forex trading is the largest financial market globally, with a daily trading volume of over $5 trillion. The forex market is open 24 hours a day, 5 days a week, and involves buying and selling of currencies from all over the world. In forex trading, traders aim to make a profit by buying a currency at a low price and selling it at a higher price. To achieve this, traders often focus on a few currency pairs that trade regularly. In this article, we will explore the 12 forex pairs that trade regularly.
1. EUR/USD
The EUR/USD is the most traded currency pair in the forex market, accounting for over 20% of the total trading volume. The EUR/USD represents the euro currency against the US dollar. This currency pair is popular among traders because it has a high liquidity level, which means traders can easily buy or sell the currency pair.
2. GBP/USD
The GBP/USD represents the British pound against the US dollar. This currency pair is also popular among traders because it has a high liquidity level. The GBP/USD is known for its volatility, which presents traders with opportunities to make a profit.
3. USD/JPY
The USD/JPY represents the US dollar against the Japanese yen. This currency pair is one of the most traded pairs in the forex market, accounting for over 10% of the total trading volume. The USD/JPY is popular among traders because it is closely linked to the US stock market, and traders can use it to hedge against equity positions.
4. AUD/USD
The AUD/USD represents the Australian dollar against the US dollar. This currency pair is popular among traders because it is closely linked to commodity prices, particularly gold and oil. The AUD/USD is also known for its volatility, which presents traders with opportunities to make a profit.
5. USD/CAD
The USD/CAD represents the US dollar against the Canadian dollar. This currency pair is popular among traders because it is closely linked to oil prices. Canada is a major oil-producing country, and changes in oil prices often affect the value of the Canadian dollar.
6. EUR/JPY
The EUR/JPY represents the euro currency against the Japanese yen. This currency pair is popular among traders because it has a high liquidity level, and it is closely linked to the stock market. The EUR/JPY is also known for its volatility, which presents traders with opportunities to make a profit.
7. USD/CHF
The USD/CHF represents the US dollar against the Swiss franc. This currency pair is popular among traders because the Swiss franc is often used as a safe-haven currency during times of economic uncertainty. The USD/CHF is also known for its volatility, which presents traders with opportunities to make a profit.
8. NZD/USD
The NZD/USD represents the New Zealand dollar against the US dollar. This currency pair is popular among traders because it is closely linked to commodity prices, particularly dairy prices. New Zealand is a major dairy-producing country, and changes in dairy prices often affect the value of the New Zealand dollar.
9. EUR/GBP
The EUR/GBP represents the euro currency against the British pound. This currency pair is popular among traders because it has a high liquidity level, and it is closely linked to the stock market. The EUR/GBP is also known for its volatility, which presents traders with opportunities to make a profit.
10. GBP/JPY
The GBP/JPY represents the British pound against the Japanese yen. This currency pair is popular among traders because it has a high volatility level, and it is closely linked to the stock market. The GBP/JPY is also known for its volatility, which presents traders with opportunities to make a profit.
11. EUR/CHF
The EUR/CHF represents the euro currency against the Swiss franc. This currency pair is popular among traders because the Swiss franc is often used as a safe-haven currency during times of economic uncertainty. The EUR/CHF is also known for its volatility, which presents traders with opportunities to make a profit.
12. GBP/CHF
The GBP/CHF represents the British pound against the Swiss franc. This currency pair is popular among traders because the Swiss franc is often used as a safe-haven currency during times of economic uncertainty. The GBP/CHF is also known for its volatility, which presents traders with opportunities to make a profit.
In conclusion, the forex market offers traders a vast range of currency pairs to trade. However, the 12 currency pairs listed above trade regularly and are popular among traders due to their high liquidity and volatility levels. As with any trading, it is important to conduct thorough research and have a sound trading strategy to make a profit in the forex market.
