Major Currency Pairs in the Forex world

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 Frank
EUR/CAD: Euro vs. Canadian dollars
EUR/AUD: Euro vs. Australian dollars
EUR/GBP: Euro vs. Great British Pounds

Why 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:


The popularity of currency in forex trading world is keeping changing; let’s have a look the change of percentage of trading volume for each currency:

Each currency pair has its own feature, such as low spread, high volatility or high correlation with other pairs. We will talk about more here in the future articles.

Article Source: www.findyourfx.com

The Response to above acticle

2012-06-19 12:37:27
Review by:
Salma
i'm trniyg out the onada game and while trniyg to figure out how it all works i bought 100 units aud/usdnow the question is..do the candle sticks indicate currency in aud since i bet the aud against the usd?and does aud/usd mean i'm going to make profit if the aud goes up in value compared to the usd? or the other way around.and lastly its been about 13 hours and all i see is a straight line with no indications of up or down on the graph..is that normal?thanks

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