Forex trading, also known as foreign exchange trading, is the buying and selling of currencies in the global market. The forex market trades 24 hours a day, five days a week, and is the largest financial market in the world. Trillions of dollars are traded every day, making it a highly liquid market. In forex trading, there are 13 major currency pairs that are commonly traded. In this article, we will explain what the 13 major forex pairs are.
What are Forex Pairs?
Forex pairs are the currencies that are traded in the foreign exchange market. The forex market is a decentralized market, which means that there is no central exchange. Instead, trading is done electronically through a network of banks and financial institutions. Forex pairs are quoted in terms of one currency versus another currency. For example, the EUR/USD pair represents the euro versus the US dollar.
What are the 13 Major Forex Pairs?
The 13 major forex pairs are the most frequently traded currency pairs in the forex market. They are:
1. EUR/USD – Euro versus US dollar
2. USD/JPY – US dollar versus Japanese yen
3. GBP/USD – British pound sterling versus US dollar
4. USD/CHF – US dollar versus Swiss franc
5. USD/CAD – US dollar versus Canadian dollar
6. AUD/USD – Australian dollar versus US dollar
7. NZD/USD – New Zealand dollar versus US dollar
8. EUR/GBP – Euro versus British pound sterling
9. EUR/JPY – Euro versus Japanese yen
10. EUR/CHF – Euro versus Swiss franc
11. GBP/JPY – British pound sterling versus Japanese yen
12. GBP/CHF – British pound sterling versus Swiss franc
13. CHF/JPY – Swiss franc versus Japanese yen
Why are these Forex Pairs Considered Major?
The 13 major forex pairs are considered major because they have the highest trading volume and liquidity in the forex market. They are also the most widely traded currency pairs, and they are the most popular among forex traders. The high liquidity of these currency pairs makes it easy for traders to buy and sell them at any time without affecting the market price.
Which Forex Pairs are the Most Volatile?
Volatility in forex trading refers to the amount of fluctuation in the exchange rate of a currency pair. The more volatile a currency pair is, the more it can fluctuate in price. The most volatile forex pairs are:
1. GBP/USD
2. USD/JPY
3. AUD/USD
4. NZD/USD
5. USD/CAD
These forex pairs have the highest volatility because they are influenced by a range of economic and political factors, such as interest rates, inflation, and geopolitical events.
Which Forex Pairs are the Most Stable?
Stability in forex trading refers to the degree of predictability in the exchange rate of a currency pair. The most stable forex pairs are:
1. EUR/USD
2. USD/CHF
3. EUR/GBP
4. EUR/CHF
5. CHF/JPY
These forex pairs are considered stable because they are influenced by stable economic and political factors, and they have a lower degree of volatility compared to the other major currency pairs.
Conclusion
In conclusion, the 13 major forex pairs are the most frequently traded currency pairs in the forex market. They are highly liquid and have a high trading volume, making them the most popular among forex traders. Understanding the major currency pairs is essential for any forex trader who wants to succeed in the forex market. By knowing which pairs are the most volatile and which are the most stable, traders can make informed decisions about when to buy and sell currencies.
