Foreign currencies are always traded in pairs. For instance, GBP/USD, GBP will be the base currency and USD is the quoted currency. It refers the amount of GBP as being the amount required to buy 1 unit of USD. When you buy this currency pair, it means you are buying GBP and selling USD at the same time. On the other hand, if you want to sell this currency pair, it means you are selling GBP and buying USD simultaneously. It is important to have good knowledge of currencies pairs when learning forex trading. In general, the major currency pairs mean the most popular currency pairs for investors and traders in the forex markets.Lets talk about the top 12 most popular currencies pairs in the current world:EUR/USD: Euro vs. US dollars (Nickname: Euros)USD/JPY: US dollars vs. Japanese Yen (Nickname: Bill and Ben)GBP/USD: Great British Pounds vs. US dollars (Nickname: Cable)AUD/USD: Australian Dollars vs. US dollars (Nickname: Aussie)USD/CHF: US dollars vs. Swiss Frank (Nickname: Swissy)USD/CAD: US dollars vs. Canadian Dollars (Nickname: Loonie)NZD/USD: New Zealand Dollars vs. US dollars (Nickname: Kiwi)EUR/CHF: Euro vs. Swiss FrankEUR/CAD: Euro vs. Canadian dollarsEUR/AUD: Euro vs. Australian dollarsEUR/GBP: Euro vs. Great British PoundsWhy the above currencies pairs are the top most popular currencies pairs in the current financial market? You may have already notice that these counties represent some of the largest economies in the world. The trading volume of top 7 currency pairs is much larger than the rest pairs. If you just focus on the first 7 currency pairs, you can find US dollar (USD) is always on one side of the pair, it means the US dollar is the largest currency in the foreign exchange market.The following chart shows the most actively traded currency pairs:
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