CapitalXtend
flagEN
  • flagEnglish
  • flagفارسی
  • Company
    • Who We Are
    • Forex Academy
    • Financial Commission Funds
    • License & Certification
    • Company News
    • Careers
    • Contact us
  • Products
    • TRADING INSTRUMENTS
    • Forex Trading
    • Spot Metals
    • Spot Energies
    • CFD Indices
    • Cryptocurrencies
    • Contract Specifications
    • Trading Platforms
    • MetaTrader 4
    • MetaTrader 5
    • Trading Tools
    • Forex VPS
  • Accounts
    • Accounts Comparison
    • Leverage & Margin
    • Deposits & Withdrawals
  • Promotions
    • 30% Deposit Bonus
    • Cashback Reward
  • Social Trading
    • CopyTrading
    • PAMM
  • Partners
  • flagEN
  • Login Register
  • Login Register
  • Company
    • Who We Are
    • Forex Academy
    • Financial Commission Funds
    • License & Certification
    • Company News
    • Careers
    • Contact us
  • Products
    • TRADING INSTRUMENTS
    • Forex Trading
    • Spot Metals
    • Spot Energies
    • CFD Indices
    • Cryptocurrencies
    • Contract Specifications
    • Trading Platforms
    • MetaTrader 4
    • MetaTrader 5
    • Trading Tools
    • Forex VPS
  • Accounts
    • Accounts Comparison
    • Leverage & Margin
  • Promotions
    • 30% Deposit Bonus
    • Cashback Reward
  • Deposits & Withdrawals
  • Social Trading
    • CopyTrading
    • PAMM
  • Partners

Most Traded Currency Pairs in Forex Market

  • If we talk about currency pairs then it is imperative to say that their existence in the early 90s gave rise to an entire domain of trading. Nowadays, Forex enthusiasts and learners start their trading journey by learning the basics of Forex trading which usually starts with understanding currency pairs.

    Currency Pairs in FX Market

    In its simplest terms, if we see the ticker of two currency pairs in denomination such as EUR/USD that directly refers to the currency of two different nations. To make it easier to understand, you can refer to the LHS as Base currency and RHS as Quote currency. Any online forex trading platform will display these pairs in a denomination which also gives us the exact value of one currency in reference to other currency.

    The first step for forex trading beginners starts with understanding the comparison and utilising the information while trading.

    For instance, when a trader is quoted AUD/USD 1.13 it means that the trader can exchange 1 Australian dollar and receive 1.13 US Dollars. Also, If the AUD/USD quotation goes from 1.13 today to 1.15 tomorrow it means that the Australian dollar has appreciated relative to the US dollar, or that the US dollar has depreciated relative to the Australian dollar.

    Now that you understand the basics of currency pairs, we can understand and take the idea of the most traded currency pairs in the Forex Market which includes Major, Minors and exotic pairs. However, in this particular article, we are going to understand the three most dominant and widely traded currency pairs and how they are dependent on other factors. Let's take a look:

    Also read: Forex trading for beginners

    Major Currency Pairs

    1. EUR/USD

    The BIS Triennial Central Bank Survey, known for its comprehensive source of information on the size and structure of global foreign exchange (FX) and over-the-counter (OTC) derivatives markets, submitted a report called Global foreign exchange market turnover in 2019. This report says that the US dollar is the dominant currency which comprises 88% of all the trades, followed by the Euro which is 32%.

    If we talk about the pair EUR/USD then it makes up for 24% of the daily volume of Forex trading in 2019. You might be wondering why this specific currency is so popular. Well, here are some facts to support that reason:

    1. EUR/USD represents Europe and the United States of America, two of the world’s greatest economies.
    2. It is  highly liquid and offers the tightest spreads between ask and bid prices.
    3. Federal banks issue US dollars. It also regulates the interest rates that affect the strength of the currency. Higher the rates , higher will be the appreciation of currency.
    4. The strength of the Euro is dependent upon the economic development of the Eurozone, CPI reports and political scenarios.

    2. USD/JPY

    In the previous paragraph, you have gained a fresh insight about the US dollar. However, the Japanese Yen is also the pioneer currency of the world economy. Though Japan is a small country, its economy is majorly dependent upon manufacturing industries. This fact gives us a broad idea that commodities like oil and spot metals can be directly linked to the strength of the Japanese Yen.

    If we talk about the daily volume of transaction of the USD/JPY pair then it represents around 13.2%. Japanese Yen is Asia’s most heavily traded currency. This fact also leads to our second understanding that if two strong currencies are traded in pairs then they offer high liquidity and tight spreads. You can find these two features common in all the top traded currencies. However, the GDP of Japan, its international trade, GDP figures and the Bank of Japan’s interest rate’s decision play a significant role in the strength of the USD/JPY pair.

    Trivia: The USD/JPY currency pair nicknames as ‘the gopher’.

    3. GBP/USD

    The British pound and the US dollar represent England and the United States of America, the two most important economies of the world. You have learnt about the American dollar in the previous section. Now, let's clear out the facts about the British pound. Also known as ‘Cable’, the currency pair holds 9.6% out of total daily forex transactions, what makes it more interesting is that GBP/USD is highly correlated to the EUR/USD because the British economy is interconnected to the Eurozone economy. The strength of the GBP is decided on the following factors:

    1. The political stability of England.
    2. The monetary policies of the central bank.
    3. The Employment data and the GDP of the country.

    The dependency of currency on certain factors helps us understand what to monitor in news before we open any position in the forex market. Furthermore, if you see that the British pound is strong in the market then you will also see the news that the British economy is doing better and vice versa.

    Takeaway

    To understand currency pairs and the underlying dynamics, this article is just the tip of the iceberg. However, you now have understood the fundamentals of currency pairs and how they represent the magnitude of the economy and politics of that geographical region. There are around 128 currency pairs spanning around three different classes which are Majors, minors and exotics. For the start, we recommend you to closely understand the above -mentioned currency pairs. Once you will get familiar with the most traded currency pairs, you will gain a broad spectrum of knowledge to understand the remaining currency pairs.

Related Articles

View All  >
How to Trade Forex Using Crypto

How to Trade Forex Using Crypto

In this fast-evolving financial world, the coupling of crypto with traditional markets has spawned new trading avenues globally. One of the trendy a...

Read More >
When is the Best Time to Trade the Forex Market?

When is the Best Time to Trade the Forex Market?

The Forex market is a volatile global market operating around the clock for five days a week, with opportunity forever knocking on the door for any...

Read More >
How to Trade Stocks with Leverage 1:5000

How to Trade Stocks with Leverage 1:5000

Stock trading has never been so simple, and traders now have time-tested methods and advanced technology to capitalize on trading profits. One of th...

Read More >
Forex MT4 Robot: How to Create and Set Up

Forex MT4 Robot: How to Create and Set Up

In today's fast-paced financial markets, you will find traders searching for tools that will meet their needs. Forex trading has some popular ap...

Read More >
What is a Forex VPS? Benefits and How to Choose

What is a Forex VPS? Benefits and How to Choose

In today’s era, speed and stability are key to making a potentially profitable trade in currencies. Virtually, a Forex VPS Hosting could be an...

Read More >
What is Swing Trading in Forex?

What is Swing Trading in Forex?

Swing trading is an intermediate trading style, a compromise between day trading and longer-term investing. It involves holding onto positions from...

Read More >
What is Spread in Forex Trading & How is it Calculated?

What is Spread in Forex Trading & How is it Calculated?

Forex trading is known as the largest financial market in the entire world and it is a marketplace for everyone who wants to make a potential profit...

Read More >
What is Base and Quote Currency in Forex

What is Base and Quote Currency in Forex

Forex trading is a trading practice of global currencies through trading in pairs all over the world. When you engage in forex trading, you are deal...

Read More >
Difference Between Copy Trading & Social Trading

Difference Between Copy Trading & Social Trading

In the world of online investing, copy trading, and social trading have emerged as powerful strategies, especially in the forex market. These method...

Read More >
How to Manage Risk While Copy Trading?

How to Manage Risk While Copy Trading?

Copy trading has become a popular method that enables traders to copy the transactions of skilled traders. For beginners, it can simplify trading an...

Read More >
How to Stay Focused and Disciplined in Forex Trading?

How to Stay Focused and Disciplined in Forex Trading?

In forex trading, there are vast opportunities for traders if they are focused and disciplined. Success in this dynamic market of changing currency...

Read More >
Tips for Choosing the Right Brokerage Platform for Your Trading Needs

Tips for Choosing the Right Brokerage Platform for Your Trading Needs

Investors at all levels of experience can find a lot of opportunities in the exciting world of finance. But choosing the right brokerage platform is...

Read More >
What is a Currency Trading Platform?

What is a Currency Trading Platform?

Currency trading platforms are software systems that allow traders to participate in trading online currency. They give you a chance to view real-ti...

Read More >
Exploring the Best Forex Trading Indicators

Exploring the Best Forex Trading Indicators

The use of indicators is crucial while forex trading. Many traders use these indicators daily to help them determine when to buy and sell in the cur...

Read More >
Types of Hedges and Hedging Techniques

Types of Hedges and Hedging Techniques

Hedging is like a financial strategy that financial backers should understand and use since it accompanies a lot of advantages. It acts as an invest...

Read More >
Hedging in Forex Trading

Hedging in Forex Trading

Hedging is a strategic pillar of risk management in the complex world of trading, and understanding its nuances is paramount for any trader navigati...

Read More >
A Guide to Starting a Hedge Fund and its Benefits

A Guide to Starting a Hedge Fund and its Benefits

In today’s era, Hedge funds are one of the most well-known investment vehicles. They offer benefits for investors including the ability to pro...

Read More >
What is Hedging? – An Ultimate Guide

What is Hedging? – An Ultimate Guide

The concept of hedging can be applied to a variety of investments like bonds, commodities, stocks, and currencies. Hedging typically involves the ut...

Read More >
How to Trade Forex for Beginners

How to Trade Forex for Beginners

Welcome to the exciting world of Forex investments, where people can make a lot of money by swapping currencies all over the world. The

Read More >
How to start forex trading?

How to start forex trading?

Forex trading is an exciting market that offers tradable currencies the chance to react to changes quickly through a Forex trading platform. Forex i...

Read More >
What is Volatility in Forex?

What is Volatility in Forex?

The term 'Volatility' in the context of forex is a measure of the fluctuation in the value of a currency pair over a specific period. It is...

Read More >
Know the Difference between Forex Trading and Stock Trading

Know the Difference between Forex Trading and Stock Trading

The forex trading and the stock trading, are two of the most popular markets for traders of assets. Making the right decision when choosing one of t...

Read More >
All you need to know about Social Trading: Beginners Guide

All you need to know about Social Trading: Beginners Guide

Introduction: What is Social Trading? Trading is becoming more and more popular as people now turn to financial markets to provide them...

Read More >
An Overview to Foreign Exchange Market

An Overview to Foreign Exchange Market

Introduction to Foreign Exchange Market The Forex Market (also known as the Forex, FX, or Currency Market) is the over-the-counter (OTC)...

Read More >
Types of Forex Charts and How to Read

Types of Forex Charts and How to Read

When it comes to trading, there are a lot of different charts that can be used. This article will teach you about the different types of charts and...

Read More >
5 Profitable Forex Copy Trading Tips

5 Profitable Forex Copy Trading Tips

If you're looking for investment alternatives with low-cost and low-risk that also have a higher chance of success rates and rewards, Forex

Read More >
Know the Top Strategies to Trade Forex in 2022

Know the Top Strategies to Trade Forex in 2022

When it comes to trading foreign currency, it is unquestionably essential to ensure that you have identified the most successful tactics overall. Ke...

Read More >
Copy Trading Guide and its Advantages and Disadvantages

Copy Trading Guide and its Advantages and Disadvantages

Getting inspired by colleagues or an expert trader and beginning with trading cryptocurrency sounds incredible. However, it's not that easy; tra...

Read More >
A Complete Guide to Understand Forex Market!

A Complete Guide to Understand Forex Market!

What is Forex Trading? Forex is the settlement of transactions in any one currency for delivery of another. Its settlement system is ma...

Read More >
Basic Forex Trading Terminologies Every Trader Should Know?

Basic Forex Trading Terminologies Every Trader Should Know?

Trading and investing can be a complicated process. There is a plethora of terms to keep up with, and you need to understand what they mean in order...

Read More >
Everything You Need to Know About Currency Pairs

Everything You Need to Know About Currency Pairs

What is a currency pair? A currency pair enables the comparison of two distinct currencies' values. Consider the existence of two d...

Read More >
How Online Financial Trading Works?

How Online Financial Trading Works?

How Online Financial Trading Works? With the advent of online financial trading, investors seem to have become more interested in financ...

Read More >
Best Global Online Forex Broker

Best Global Online Forex Broker

The largest and the most actively traded financial market is the foreign exchange market. When it comes to trading in the foreign exchange market, t...

Read More >
Tips to Understand Online Financial Trading

Tips to Understand Online Financial Trading

Tips to Understand Online Financial Trading As in now, every individual wants to invest in some financial asset. Online financial tradin...

Read More >
What Is Online Financial Trading?

What Is Online Financial Trading?

What Is Online Financial Trading – Know the Advantage Investment has now become a lot easier thing than it used to be in earlier t...

Read More >
Forex correlation pairs and How to trade it

Forex correlation pairs and How to trade it

Welcome to the exciting world of Forex trading! To become a successful trader, you need to have a deep understanding of different market dynamics, a...

Read More >
What is Forex Trading?

What is Forex Trading?

FOREX or FX stands for Foreign Exchange is the world’s most traded market place where national currencies are traded, and Forex Trading refers...

Read More >
Categories
  • Forex >
  • Spot Energies >
  • Spot Metals >
  • Indices >
  • Cryptocurrency >
  • Trading platforms: >
  • Miscellaneous >
CapitalXtend

With 15 years team experience, CapitalXtend is one of the most secure, fast and trustworthy trading platforms in the industry.

CapitalXtend ensures the security of your funds with up to $1M insurance coverage, underwritten by the renowned Lloyd's.

$1M insurance coverage

CapitalXtend triumphed at the Dubai Forex Expo 2024, proudly winning the prestigious Best Fastest Payout Award.

  • TheFinancial
  • Execution

  • Products Forex Trading Spot Metals Spot Energies CFD Indices Contract Specifications
  • Company Who we are Financial Commission Funds Contact us Accounts Comparison Leverage & Margin
  • Risk Disclosure
  • Client Agreement
  • AML Policy
  • Privacy Policy
  • Refund Policy
Follow us on:
Mobile App
mobile_app_playstore
  • Licence

    Regulated by FSC Mauritius

    CapitalXtend LLC Mauritius with registration number 198013 and registration address at Level 2, Suite 201 The Catalyst 40 Silicon Avenue Cybercity, 72201 Ebene, Republic of Mauritius is regulated by the Financial Services Commission of the Republic of Mauritius with an Investment Dealer License with license number GB23201599.

    Regulated by FC

    As a member of The Financial Commission, which is an independent and impartial Forex and CFD dispute resolution organization that offers up to €20,000 of coverage on a per case basis, on every dispute that's submitted via their organization from clients of listed member Forex Brokers - CapitalXtend assures its clients that their funds are secured.

    Kazakhstan Accreditation

    CapitalXtend LLC is a part of CAPITALXTEND GROUP LTD is incorporated in the Republic of Kazakhstan with Business Identification Number 201240028219 and has been registered as Financial Services Provider on the 25/12/2020 with the Ministry of Economy. The company is entitled to provide the following services to customers within and outside the Republic of Kazakhstan according to the accreditation issued by the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan, dated 24/02/2021 and file number 36-0-12/5/ЮЛ-C-265: Payment Processing / e-wallets, Forex Services and Crypto Currency Services. Registered address K. Amanzholov street, building 174, postal code 090000, Uralsk city, West Kazakhstan region, Kazakhstan.

    Global Trading Authorization

    CapitalXtend is a Forex, CFD, Indices, and Commodities online trading brand of Capitalxtend Limited Liability Company with registration number 395LLC2020. Registered office: Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St. Vincent and the Grenadines.

  • Disclaimer

    Restricted Regions

    The information in this content is not intended to be provided to residents of the USA, Iran, Russia, Myanmar, Canada, Haiti, Suriname, North Korea, Puerto Rico and is not intended to be distributed or used by anyone in any country or jurisdiction area, as in the country or jurisdiction.

    Risk Warning

    Trading Forex and Financial Instruments involve a high level of risk and may not be suitable for all investors. The high degree of leverage can be either for or against you. Before deciding to invest, carefully consider your investment objectives and risk appetite. You should be aware of the risks associated with financial markets.

    Intellectual Property Rights

    Unauthorized duplication, publication, or quotation from CapitalXtend's website, in part or whole, without written consent, constitutes a violation of Intellectual Property Rights. Such actions, including downloading or accessing brand elements, will be litigated as infringement.

© 2025 CapitalXtend.com - All Rights Reserved