Trade volumes in the Forex market increase every year and this is displayed on volatility. Therefore, traders have the most popular currency pairs to trade. We will now look at the most popular currency pairs based on trading volumes:
Currency Pair €/$ occupies about 20% of the general world trade volume of FOREX, or more than 8 trillion dollars. All because the euro and the dollar are currencies that are used for savings and settlements in international trade, so the share of these currencies is so high. In addition, if we talk about currency trading – a lot of trading strategies and tactics of trading is based on this pair and rightly it is considered a “classic”. In initial trading on virtual and real accounts, 75% of all transactions are opened on the euro-dollar. Also, because of the large volumes in these currencies, economic indicators cause great volatility and this allows you to earn at least 400 points on one trade at least 2 times a week.
The second place is the British pound with the volume of transactions at 18%. Pound – the choice of many well-known private investors and financial institutions. Since the beginning of the year, the pair has shown quite high growth, which has caused even more investment and increased trade turnover on the pair. The most successful trading system for the pound is day-trading. The method of when transactions open in the most hammering period at the time of operation of the exchange 10:00-19:00, and all positions close before the closing of the market or the end of the day. Profits are fixed during the period of greatest volatility, at about 15:30 at the time of the crossing of the American and European sessions.
Yen in world turnover accounts for approximately 16% of trade turnover. Dollar Yen is famous as the currency with the most reliable and long-lasting trend. The pair without problems for 2-3 months shows movements up to 12,000 points, so among traders trading long term it is always in the top. But this is only part, due to the fact that on a couple of very low spread (the difference between buying and selling) USD/JPY is suitable for short deals on scalping strategies.
12% Canadian dollar, by the end of the year may well reach third place. Such prospects for the Canadian dollar opens successful policies of OPEC countries and the global strengthening of oil in commodity markets. All this strengthens the Canadian currency and attracts a high level of investment in the country. On the chart, the pair shows very high volatility and now often draws and works out figures of technical analysis. Trade in technical analysis is considered one of the safest and suitable for both beginners and professionals.
Thus, almost 50% of the turnover accounts for major currency pairs. But it is worth remembering that trading on Forex is very liquid and capital easily moves to more promising and active currencies, which depends on economic, political, and even weather factors having an impact. Everyone who begins to study and trade in financial markets is advised to choose 1-2 main currency pairs and study their history and movements, this will allow to predict price movements and insure their risks in the future.