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Which are the Most Liquid Forex Pairs on Forex Trading?

Daily Market Transactions Turnover of Major Currency Pairs by Volumes

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

USD - 85%

EUR - 40 %

JPY - 20%

GBP - 13 %

CHF - 9%

Since transactions are in pairs the total will be 200 percent

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

Summing up the total of the 4 most traded currency pairs by volume = 85 + 40 + 20 + 13 + 9 = 167 % . Note these four currency pairs are made up of 5 individual currencies which make up the sum total of 167 %.

Major Forex Currency Pairs - Which are the Best Currency Pairs to Trade for Beginner Traders?

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

Which are the Most Traded Currency Pairs by Volume?

  • EURUSD
  • USD JPY
  • GBP/USD
  • USDCHF

These are the most traded currency pairs by volume and because they have a high trade turnover and are the most profitable.

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

Therefore the Most Traded Currency Pairs in Forex Trading:

Forex Major Currency Pairs = 167 % of all turnover

Other Forex Minor Currency Pairs Combined = 33 percentage of all turnover

The greater the liquidity of a currency, the more the volatility, volatility means a currency is likely to move in a trend in one particular direction up or down because these are the most traded currency pairs by volume and when the prices are moving in a particular direction within a market trend it is easier to make money as opposed to when prices aren't moving in a particular direction - range market.

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

For Example by just EURUSD then a forex currency trader will be participating on 85 + 40 = 125% of all trade transaction volume, which is two-thirds of all currency trades. This is another reason why some traders just stick to the EUR/USD alone.

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