Trade Forex Trading

What Currency Pairs Move the Most? - The Most Liquid Currency Pairs

The currency pairs that move the most are the Forex Major FX Pairs. These major currency pairs are the currencies that move the most in the forex market.

Major currency pairs are the currency pairs that are the most traded currency pairs by volume of trade positions - these currency pairs are: EURUSD, USDJPY, GBPUSD & USDCHF.

Major currency pairs have a combination of the USD and one other major - EUR, JPY, GBP, CHF.

The Most Traded Currency Pairs in the World are the 4 major forex pairs are:

  • EURUSD
  • USD JPY
  • GBPUSD
  • USD/CHF

Daily Turnover of Major Currency Pairs by Volumes

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

USD - 85 %

EUR - 40%

JPY - 20%

GBP - 13 %

CHF - 9%

Since Forex transactions are in pairs the overall total will be 200 percent

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

Summing up the total of the big four major currency pairs = 85 + 40 + 20 + 13 + 9 = 167 % . Note these four forex pairs are made up of 5 individual currencies which make up the sum total of 167%.

  • EUR USD
  • USDJPY
  • GBP/USD
  • USDCHF

This percentage of the overall total trade trade turnover volume is what makes these four major currency pairs to be known as major forex pairs or in short "majors".

This major volume of trade positions of the overall total turnover daily volume is also what makes these 4 currency pairs the most traded currency pairs and the best currency pairs to trade especially among the Day Traders.

Therefore volume for the most traded currency pairs is:

Forex Major Currency Pairs = 167 % of all turnover

Other Currency Pairs Combined = 33 percentage of all turnover

Which are the Most Traded FX Pairs on the World?

Best FX Pairs to Trade: Because the major currency pairs are the most traded currency pairs, many experienced forex traders only trade the major currency pairs because these are highly liquid and their market movement tends to be a bit more predictable. This makes these major currencies; USD, EUR, GBP, JPY and CHF the best to analyze using analysis as they are the most liquid and the most traded currency pairs.

The greater the liquidity, the more the volatility, volatility means a currency is likely to move in a trend in one particular direction & when the prices are heading in a particular direction it's easier to make money as opposed to when prices aren't heading in a particular direction - range market.

On the other hand, all the other forex pairs, also known as minor currency pairs or currency crosses only make 33% of all daily trade positions turnover & are said to be illiquid, meaning they don't have a lot of market volatility and as such most of their price movements are choppy or range bound. These means the minor currency pairs are the most hard to analyze & interpret using technical studies because they do not show defined trend movements in one particular direction (they don't move in a trend).

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