Best Currency Pairs to Scalp Traded in the Forex Trade Market

Market turnover is approximately 7.2 trillion dollars per day, 95 percentage% of all trade transactions are carried out by retail traders for profit. The Majority of these transactions is comprised of the five major Forex currencies that are the Best Currency Pairs to Scalp comprised of:

The above symbols represent currencies of their various countries, the three letter naming format is used. This is the format used in FX when trading these currencies, for those not familiar with currency symbols the above represent the following; USD - US Dollar, EUR - EURO, GBP - Great Britain Pound, JPY - Japanese Yen and CHF - Swiss Franc.

Best Currency Pairs to Scalp to Trade

The USD is the most traded pair

USD - 85% of all daily forex market transactions

EUR - 40 % of all

JPY - 20% of all

GBP - 13 percent% of all

CHF - 9 percent% of all

US Dollar or USD - the United States dollar is the main currency of the world. It's used as the standard measure of all other currencies that are transacted in the market. All others are generally quoted in terms of US dollar. The Best Currency Pairs to Scalp are the ones that have USD, EUR, JPY & GBP.

The USA dollar is a safe haven currency, because it is held as a reserve by many central banks. In times of economic recession the dollar will strengthen due to the fact that investors buy the dollar because of its safe haven status. On the other hand when the economies are doing well people will go for those which are higher yielding such as the EURO, Pound, Swiss Franc & Australian Dollar.

In the market the dollar is traded against other major currencies, these are Euro, Japanese Yen, British Pound & Swiss Franc.

Euro or EUR - Euro has a strong international presence because it represents 17 EU Zone member countries of the European Monetary Union. Because the Euro represents 17 economies, this makes the Euro the second most transacted after the USA dollar. The Best FX Pairs to Scalp are the ones that have USD, EUR, JPY and GBP.

Japanese Yen or JPY - Japanese Yen is the third most transacted in the world because of its liquidity. Japanese economy is the second biggest economy after the American economy.

British Pound or GBP - Britain economy is the third largest economy after the US & the Japanese Economy. This makes the British pound liquid and it is the fourth most transacted in the market.

Swiss Franc or CHF - Swiss Franc is the only major of a major European country that doesn't belong to the European Monetary Union or G-7 countries. Although the Swiss economy is relatively small, the Swiss Franc is one of the five major currencies in the FX Market. This is because of the strength of the Swiss banking system & the Swiss economy which makes the Swiss Franc stable with a high demand that exceeds supply.

The Canadian Dollar or CAD & the Australian Dollar or AUD are also part of the currencies traded on the market but these do not count as being part of the majors because of their illiquidity.

After classifying the currencies, there are two categories:

Major pairs
Crosses

Major Pairs - Best Currency Pairs to Scalp to Trade

Currencies are traded in pairs of two e.g. EURUSD

Best Currency Pairs to Scalp also known as Major currency pairs have a combination of the USD and one other major(EUR, JPY, GBP, CHF).

The 4 major pairs or the big four in Forex are - Best Currency Pairs to Scalp:

EURUSD
USD JPY
GBPUSD
USD/CHF

These are the most traded because they have a high turnover & are the most profitable.

These are the best pairs for day trading, if you as the trader want to make the most profit it is best to trade only these four majors only.

Daily Turnover of Currencies by Volumes

USD is the most traded, followed by EUR, GBP, JPY and CHF, the daily turnover volume share taken by each of these 5 in terms of percent is illustrated below:

USD - 85%

EUR - 40 %

JPY - 20%

GBP - 13 %

CHF - 9%

Since Forex transactions are in pairs the total will be 200 percentage%

For example the EUR/USD pair: EURUSD = 100% EUR + 100% USD

Best Currency Pairs to Scalp

Summing up the total of the big four pairs= 85 + 40 + 20 + 13 + 9 = 167 percentage% . Note these four are made up of five individual currencies which make up the sum total of 167 %. This percentage% of the total turnover volume is what makes these four pairs to be known as major pairs or in short "majors". This lion share of the total turnover daily volume is also what makes these 4 the Best Currency Pairs to Scalp to trade especially among the Day Traders.

Hence volume for Majors is:

FX Major Pairs = 167 percentage% of all turnover

Other Forex Pairs Combined = 33 percent% of all turnover

Best Currency Pairs to Scalp to Trade: Because the majors are the most actively traded, many experienced investors only trade the majors because these are highly liquid & their movement tends to be more predictable. This makes these majors; USD, EUR, GBP, JPY and CHF the best to analyze using analysis as they're the most liquid.

The Best Currency Pairs to Scalp have more liquidity - The more the liquidity, the more the volatility, volatility means a currency is likely to trend in one particular direction and when prices are heading in a particular direction it is easier to make money as opposed to when the prices aren't heading in a particular direction - ranging market.

On the other hand, all the other pairs, also known as minor currency pairs that make 33% of all daily turnover and are said to be illiquid, meaning they don't have a lot of volatility and as such most of their price movements are choppy or range bound. These means that the minors are the most hard to analyze using analysis studies because they don't show defined market movements in one particular direction (they do not move in a trend) and therefore they are not the Best Currency Pairs to Scalp.

For Example by just trading EURUSD then a trader will be participating on 85 + 40 = 125% of all turnover volume, which is two-thirds of all transactions. This is another reason why some just stick to the EUR/USD alone - one of the Best Currency Pairs to Scalp.

Get More Topics and Courses:

Trade Forex Trading

Best Currency Pairs to Scalp Traded in the Forex Trade Market

Major Pairs - Best Currency Pairs to Scalp to Trade

Daily Turnover of Currencies by Volumes

Hence volume for Majors is: