Forex trading involves buying and selling currencies in pairs. The major pairs in forex are the most actively traded currency pairs in the forex market. They account for more than 80% of the daily trading volume in the forex market. In this article, we will discuss the major pairs in forex, their characteristics, and why they are important.
The major pairs in forex consist of seven currency pairs, which are as follows:
1. EUR/USD – Euro vs. US dollar
2. USD/JPY – US dollar vs. Japanese yen
3. GBP/USD – British pound vs. US dollar
4. USD/CHF – US dollar vs. Swiss franc
5. AUD/USD – Australian dollar vs. US dollar
6. USD/CAD – US dollar vs. Canadian dollar
7. NZD/USD – New Zealand dollar vs. US dollar
The Euro vs. US dollar (EUR/USD) is the most actively traded currency pair in the forex market, accounting for almost 30% of the daily trading volume. It is also known as the “fiber” in the forex market. The EUR/USD pair represents the value of the euro in US dollars.
The US dollar vs. Japanese yen (USD/JPY) is the second most actively traded currency pair in the forex market, accounting for almost 20% of the daily trading volume. It is also known as the “ninja” in the forex market. The USD/JPY pair represents the value of the US dollar in Japanese yen.
The British pound vs. US dollar (GBP/USD) is the third most actively traded currency pair in the forex market, accounting for almost 10% of the daily trading volume. It is also known as the “cable” in the forex market. The GBP/USD pair represents the value of the British pound in US dollars.
The US dollar vs. Swiss franc (USD/CHF) is the fourth most actively traded currency pair in the forex market, accounting for almost 5% of the daily trading volume. It is also known as the “swissy” in the forex market. The USD/CHF pair represents the value of the US dollar in Swiss francs.
The Australian dollar vs. US dollar (AUD/USD) is the fifth most actively traded currency pair in the forex market, accounting for almost 5% of the daily trading volume. It is also known as the “aussie” in the forex market. The AUD/USD pair represents the value of the Australian dollar in US dollars.
The US dollar vs. Canadian dollar (USD/CAD) is the sixth most actively traded currency pair in the forex market, accounting for almost 5% of the daily trading volume. It is also known as the “loonie” in the forex market. The USD/CAD pair represents the value of the US dollar in Canadian dollars.
The New Zealand dollar vs. US dollar (NZD/USD) is the seventh most actively traded currency pair in the forex market, accounting for almost 5% of the daily trading volume. It is also known as the “kiwi” in the forex market. The NZD/USD pair represents the value of the New Zealand dollar in US dollars.
The major pairs in forex have several characteristics that make them important in the forex market. The major pairs are highly liquid, which means that they can be easily bought and sold without affecting the price. This makes them attractive to traders who want to enter and exit the market quickly.
Another characteristic of the major pairs is that they have tight spreads. The spread is the difference between the bid price and the ask price of a currency pair. A tight spread means that the difference between the bid price and the ask price is small, which reduces the cost of trading.
The major pairs in forex are also highly volatile, which means that they can experience large price movements in a short period. This makes them attractive to traders who want to make profits quickly.
In conclusion, the major pairs in forex are the most actively traded currency pairs in the forex market. They account for more than 80% of the daily trading volume in the forex market. The major pairs are highly liquid, have tight spreads, and are highly volatile, making them attractive to traders who want to enter and exit the market quickly and make profits quickly. Understanding the major pairs in forex is essential for anyone who wants to trade in the forex market.
