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Currencies in Forex Markets – The Most Traded

Discussion in 'Forex Discussions' started by painofhell, Mar 9, 2016.

  1. painofhell

    painofhell Content Contributor

    Jun 24, 2015
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    What Are The Most Traded Currencies In Forex?

    Let’s talk about currencies. Understanding the Forex Currencies market and knowing the basic principles behind it, are a necessary tool for every trader. It also important for any type of investor. Trading currencies can diversify any portfolio investment. It also an excellent alternative when other markets are in doldrums. First, you must be familiar with the major currencies. The following list presents a brief review on them.

    1. The US Dollar – USD.
    Created in 1913 by the Federal Reserve Bank. also called “the greenback”. This is the local currency of the United States, the largest economy in the world. The USD is used as a benchmark against other major currencies. It’s particularly affected by central bank decisions and announcements regarding the interest rate policy.

    2. The European Euro – EUR.
    Considered as the main “enemy” of the USD. Represents the 17 “Eurozone” member countries. The Euro is managed by the European Central Bank (ECB) which is located in Germany. The currency tends to be slower in its fluctuations compared to other major currencies. On an average trading day it may be traded in the range of about 40 pips.

    3. The British Pound – GBP.
    Also called the “Cable” and “Pound Sterling”. It’s controlled by a government body in the UK, which is the Bank of England (BOE). The BOE is functionally equivalent to the American Federal Reserve. It manages the monetary system. The Currency is considered to be more volatile than its euro counterpart. The fluctuations come with a range of 100-150 pips a day.

    4. The Japanese Yen – JPY.
    Created in 1882 by the Japanese central bank. The last serves as the central bank of the second largest economy in the world. The JPY offers low interest rate. For that reason it”s associated with carry trades against more high-yielding currencies. Its fluctuations usually ranges from 30 to 40 pips. However it can reach up to 150 pips in volatile sessions.
  2. Sharon Higgins

    Sharon Higgins New Member

    Oct 29, 2014
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    There is no question that Dollar is highest traded currency in the world at present closely followed by Euro, it is I guess something that you have already listed one with numbers. I personally love trading on USD and JPY, as these are sort of stuff that stays in my control and sometimes it is easier to predict stuff related to these currencies as compare to others. I have another advantage and that’s with OctaFX broker, it is a rocking company with lowest spread in the industry which is just at 0.2 pips, it is pretty easy for me to handle things and that keeps me in serious control of everything and I am able to work without having to take extra stress of tension.
  3. platinumtraderfx

    platinumtraderfx New Member

    Oct 24, 2013
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    I think best trading pairs are EUR/USD and other majors as they're most liquid and volatile what gives you a space for action - fundamental or technical trading strategies, automated and algorithmic trading. I use EA's and trade fundamentals on Hotforex and try to choose majors as target instruments.

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