What are the 6 major pairs in forex?
The 6 Major Currency Pairs in Forex: A Guidance to the Most Traded Currency Pairs. In this post, we will look at the six major currency pairs in Forex: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD.
The major currency pairs on the forex market are the EUR/USD, USD/JPY, GBP/USD, and USD/CHF. The four major currency pairs are some of the most actively traded pairs in the world, along with the so-called commodity currency pairs: USD/CAD, AUD/USD, and NZD/USD.
The AUD/JPY, AUD/USD, CAD/JPY, NZD/JPY, GBP/AUD, USD/MXN, USD/TRY, and USD/ZAR move the most pips daily but are not the most liquid currency pairs. Among highly liquid currency pairs, the EUR/USD and the GBP/USD move between 70 to 120 pips daily, followed by the USD/CHF and the USD/JPY.
Exotic currency pairs include currencies of emerging markets. These pairs are not as liquid, and the spreads are much wider. An example of an exotic currency pair is the USD/SGD (U.S. dollar/Singapore dollar). Bank for International Settlements.
Beginners might find the AUD/USD pair to be an excellent choice, since it is more predictable and less likely to spike or drop suddenly. In many studies, this pair has also been cited as one of the least volatile. In conclusion, the best currency pairs to trade for beginners are EUR/USD, GBP/USD, USD/JPY.
While there are many pairs you could trade for most traders, it is best to stick to one to five pairs and become an expert. There is always a temptation to change markets when making losses. Other forex pairs can appear to have stronger trends, higher volatility, and easier-to-make profits.
If you're just starting out, try to focus on 5 to 10 currency pairs.
The best Forex pairs often depend on market volatility, economic events, liquidity, and your personal risk tolerance. It's important to consider factors like the pair's average daily range, trading times, and costs.
Earning a consistent 50 pips a day in forex trading is an ambitious but achievable goal. While the forex market is highly dynamic and unpredictable, traders who employ effective strategies and risk management techniques can work towards this target.
Chasing profits: Trying to make more than 20 pips a day can lead to risky trading decisions and potential losses. Not having a solid risk management plan: Risk management is crucial in forex trading, and not having a proper plan in place can result in significant losses.
How to get 50 pips per day?
Essential Rules when using the 50 pips a day strategy
Wait for 7 a.m. GMT candlestick to close and immediately open buy stop order (2 pips above the high) and sell stop orders (2 pips below the low). The price will move towards high or low and activate one of the pending orders. Then, you may cancel the another order.
In conclusion, while there are various forex trading strategies available, scalping is considered to be the most profitable due to its high potential returns and low risk.
The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities. The Sydney/Tokyo markets overlap (2 a.m. to 4 a.m.) is not as volatile as the U.S./London overlap, but it still offers opportunities.
Major currency pairs, such as EUR/USD, GBP/USD, and USD/JPY, are characterized by high liquidity. This makes them suitable for scalping strategies as traders can quickly enter and exit positions without significant slippage.
The EUR/USD pair holds the throne as the most traded forex pair globally, known for its liquidity and stability. Traders often turn to this pair for its reliability and consistent profit opportunities.
Major Currency Pairs:Stick to major currency pairs like EUR/USD, GBP/USD, or USD/JPY. These pairs are more liquid and often have lower spreads, making them suitable for smaller accounts. Low Spread Pairs:Choose currency pairs with low spreads to minimize trading costs.
This forex trading style is ideal for people who dislike looking at their charts frequently and who can only trade in their free time. The very lowest you can open an account with is $500 if you wish to initiate a trade with a risk of 50 pips since you can risk $5 per trade, which is 1% of $500.
Warren Buffett, primarily known for his prowess in the stock market, has also ventured into forex trading, showcasing adaptability and strategic thinking. His story exemplifies the potential for individuals from traditional finance to excel in the dynamic forex landscape.
Majors are forex pairs including the US dollar and six other currencies which make up the vast majority of traded pairs. While EUR/USD boasts the most trading volume by far, these three commodity currency major pairs, AUD/USD, CAD/USD and NZD/USD are the most volatile major pairs and as such received a lot of interest.
Exotic options usually trade in the over-the-counter (OTC) market. The OTC marketplace is a dealer-broker network, as opposed to a large exchange such as the New York Stock Exchange (NYSE). Further, the underlying asset for an exotic can differ greatly from that of a regular option.
What does exotic mean in trading?
In finance, the term "exotic" is therefore used for financial products that are deemed marginal and are characterized by high price volatility. An exotic product is a derivative with complex characteristics that is often used by seasoned individual investors or financial market specialists.
What are the major currency pairs? The definition of 'major currency pairs will differ among traders, but most will include the four most popular pairs to trade - EUR/USD, USD/JPY, GBP/USD and USD/CHF.
Of all the pairs listed in our table, the EUR/JPY, NZD/USD, and AUD/USD are the most trending currency pairs at the moment. Although these trends are not extremely forceful, they have produced numerous trading opportunities during the last 12 months.
References
- https://www.linkedin.com/pulse/how-many-currency-pairs-should-you-trade-ferl-ngningone
- https://www.oanda.com/us-en/trade-tap-blog/trading-tools-strategies/most-popular-currency-pairs/
- https://www.ironfx.com/en/is-there-a-100-winning-strategy-in-forex/
- https://www.oreilly.com/library/view/trading-basics-evolution/9781118488386/OEBPS/c03-3.htm
- https://www.investopedia.com/financial-edge/0310/one-world-one-currency-could-it-work.aspx
- https://www.linkedin.com/pulse/can-you-start-trading-forex-just-100-fxwire-a4tie
- https://www.indeed.com/career-advice/finding-a-job/trading-degree
- https://www.fortrade.com/glossary/minor-currency-pairs-minors/
- https://www.quora.com/What-is-a-good-currency-pair-to-trade-with-a-small-account
- https://www.forex.com/ie/news-and-analysis/top-10-most-volatile-forex-pairs/
- https://www.fxstreet.com/rates-charts/usdmxn
- https://www.forbes.com/advisor/au/investing/currencies/top-10-strongest-currencies-in-the-world/
- https://www.ig.com/us/trading-strategies/10-most-volatile-forex-pairs-to-trade-231212
- https://www.dailyforex.com/forex-articles/which-forex-pairs-move-the-most/198619
- https://www.forbes.com/advisor/education/trade-schools/quick-to-learn-trades/
- https://www.investopedia.com/articles/forex/11/degrees-you-need-for-forex-trading.asp
- https://wise.com/gb/blog/strongest-currencies-in-the-world
- https://gitnux.org/day-trading-statistics/
- https://fxssi.com/most-trendy-currency-pairs
- https://www.cmcmarkets.com/en/learn-forex/16-strongest-currencies-in-the-world
- https://www.sofi.com/learn/content/how-much-is-a-dollar-worth/
- https://www.linkedin.com/pulse/28-major-forex-pairs-list-forex-trading-for-beginners2-fuohc
- https://www.litefinance.org/blog/for-beginners/what-is-forex/how-to-trade-forex-with-100/
- https://www.myfxbook.com/education/currency-pairrsquos-nicknames
- https://www.audacitycapital.co.uk/trading-guides/forex-for-beginners/how-much-to-start-forex-trading/
- http://www.collegecounselorservices.com/faq/can-you-have-multiple-minors-in-college/
- https://www.quora.com/What-is-the-success-rate-of-Forex-traders-and-what-is-the-average-profit-loss-per-month-year
- https://www.tdmarkets.com/en/blog/forex-pairs-nicknames/
- https://www.litefinance.org/blog/for-beginners/what-is-forex/how-old-do-you-have-to-be-to-trade-forex/
- https://www.xtb.com/int/education/loonie-definition
- https://www.centralcharts.com/en/price-list-ranking/ALL/asc/ts_48-forex-128-currency-pairs--qc_1-alphabetical-order
- https://www.learntotradethemarket.com/forex-university/what-is-professional-forex-trading
- https://www.britannica.com/money/yen
- https://www.investopedia.com/terms/forex/m/majors.asp
- https://the5ers.com/best-currency-pairs-to-trade/
- https://www.cmcmarkets.com/en/trading-guides/forex-currency-pairs
- https://www.forexfactory.com/thread/5534-favorite-pairs-why-how-many
- https://www.audacitycapital.co.uk/trading-guides/forex-for-beginners/how-much-forex-traders-make/
- https://fbs.com/blog/forex-currency-pair-nicknames-399
- https://www.linkedin.com/pulse/how-make-50-pips-day-forex-broker-forex-global-daewc
- https://www.usnews.com/education/best-colleges/articles/can-you-double-minor-in-college
- https://www.dailyforex.com/forex-articles/types-of-forex-traders/186421
- https://www.linkedin.com/pulse/what-most-profitable-forex-trading-strategy-tech-it-online-lvcvc
- https://titanfx.com/news/a-guide-on-how-to-choose-which-forex-pair-to-trade
- https://www.audacitycapital.co.uk/trading-guides/currency-pairs/
- https://mtrading.com/education/articles/forex-strategy/rules-of-50-pips-a-day-forex-trading-strategy
- https://www.ziprecruiter.com/career/No-Experience-Trade/What-Is-How-to-Become
- https://www.instarem.com/blog/cheapest-currencies-in-the-world/
- https://www.cfr.org/backgrounder/dollar-worlds-reserve-currency
- https://www.ecmweb.com/industry-viewpoint/article/21120724/which-trade-is-the-toughest
- https://economictimes.indiatimes.com/definition/gbp
- https://www.linkedin.com/pulse/top-10-richest-forex-trader-world-2024-exness-in-india-2asoc
- https://www.axi.com/uk/blog/education/forex/exotic-currency-pairs
- https://dailypriceaction.com/blog/how-many-currency-pairs-should-you-trade/
- https://www.ziprecruiter.com/career/Forex-Trader/What-Is-How-to-Become
- https://www.investopedia.com/articles/forex/11/forex-careers.asp
- https://poe.com/poeknowledge/1512928000358234
- https://wholesale.banking.societegenerale.com/en/news-insights/glossary/exotic-products/
- https://markets.ft.com/data/currencies/tearsheet/summary?s=eurjpy
- https://www.dailyfx.com/major-currency-pairs
- https://bullishbears.com/how-much-do-day-traders-make/
- https://fxopen.com/blog/en/best-currency-pairs-to-trade-at-night/
- https://www.investopedia.com/terms/s/standard-lot.asp
- https://www.investopedia.com/terms/g/gbp.asp
- https://www.ziprecruiter.com/e/What-is-the-easiest-No-Experience-Trade-job-to-get-in-to
- https://www.axi.com/int/blog/education/forex/exotic-currency-pairs
- https://www.home.saxo/content/articles/macro-fx/usdjpy-enter-the-ninja-01112021
- https://www.litefinance.org/blog/for-beginners/forex-terminology-and-trading-slang/
- https://www.forbes.com/advisor/money-transfer/highest-currencies-in-the-world/
- https://www.cmcmarkets.com/en/trading-guides/most-traded-currency-pairs
- https://www.investopedia.com/articles/forex/08/forex-trading-schedule-trading-times.asp
- https://www.linkedin.com/pulse/what-smallest-lot-you-can-trade-forex-forex-trading-for-beginners2-7iapc
- https://www.carleton.edu/admissions/blog/triple-minoring/
- https://www.ig.com/za/trading-strategies/the-best-beginners--guide-to-buying-and-selling-forex-201127
- https://blueberrymarkets.com/learn/advanced/currency-correlations/
- https://pepperstone.com/en/market-analysis/fx-pair-naming-convention/
- https://www.forexbrokers.com/guides/forex-trading
- https://www.linkedin.com/pulse/can-i-become-millionaire-trading-forex-trader-forex
- https://www.investopedia.com/top-6-most-tradable-currency-pairs-4773389
- https://www.investopedia.com/articles/forex/050115/pros-cons-forex-trading-career.asp
- https://undergrad.usc.edu/programs/minor/rules/
- https://www.cfainstitute.org/en/programs/cfa/charterholder-careers/roles/forex-trader
- https://www.ig.com/us/trading-strategies/what-are-the-top-10-most-traded-currencies-in-the-world-200115
- https://www.dukascopy.com/swiss/english/marketwatch/articles/top-10-most-successful-forex-traders-in-the-world/
- https://www.actionforex.com/articles/forex-trading/155377-what-currency-pair-is-the-most-difficult-to-trade/
- https://www.fxstreet.com/rates-charts/usdcny
- https://www.cityindex.com/en-uk/news-and-analysis/10-best-forex-pairs-to-trade/
- https://www.investopedia.com/stock-market-for-teens-7112213
- https://www.tradetaurex.com/articles/calculate-lot-size-forex/
- https://www.investopedia.com/articles/forex/08/greatest-currency-trades.asp
- https://www.zippia.com/day-trader-jobs/education/
- https://tradeciety.com/the-best-forex-pairs-to-trade
- https://www.forexbrokers.com/guides/forex-trading-apps
- https://www.investopedia.com/terms/e/exoticoption.asp
- https://www.indeed.com/career-advice/finding-a-job/careers-in-forex-trading
- https://sg.news.yahoo.com/5-travel-destinations-where-your-dollar-will-stretch-furthest-in-2024-220054716.html
- https://www.exclusivemarkets.com/blog/most-traded-currency-pairs
- https://www.babypips.com/learn/forex/buying-selling-currency-pairs
- https://www.linkedin.com/pulse/top-10-most-profitable-forex-pairs-2024-exness-in-india-lhpbc
- https://www.linkedin.com/pulse/best-forex-pair-scalping-forex-trading-for-beginners2-pd4hc
- https://www.ziprecruiter.com/Salaries/Forex-Trader-Salary
- https://www.linkedin.com/pulse/can-you-make-20-pips-day-forex-exness-in-india-rnbuc
- https://www.linkedin.com/pulse/what-forex-trading-lot-size-how-calculate-md-sabbir
- https://admiralmarkets.com/education/articles/forex-basics/what-are-the-best-currency-pairs-to-trade
- https://www.forex.com/en-us/news-and-analysis/the-top-10-most-traded-currencies/
- https://www.remitx.com/blog/best-currency-pairs-to-trade-for-beginners/
- https://www.linkedin.com/pulse/how-old-do-you-have-trade-forex-tech-it-online-gupwc
- https://www.investopedia.com/terms/c/currencypair.asp
