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Which are the Most Liquid Forex Pairs on Forex Trading?

Daily Market Transactions Turnover of Major Currency Pairs by Volumes

USD remains the most traded currency globally, followed by EUR, GBP, JPY, and CHF. Below is data showing the percentage of daily turnover for these five major currencies.

USD - 85%

EUR - 40 %

JPY - 20%

GBP - 13 %

CHF - 9%

Since transactions are in pairs the total will be 200 %

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

Adding up the volumes of the four most-traded currency pairs yields a total of 167%, derived from components such as 85%, 40%, 20%, 13%, and 9%. These four currency pairs comprise five individual currencies contributing to the overall sum.

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

Major currency pairs in the FX market consist of the USD paired with another primary currency: EUR, JPY, GBP, or CHF.

Which are the Most Traded Currency Pairs by Volume?

  • EURUSD
  • USD JPY
  • GBP/USD
  • USDCHF

These particular currency pairs experience the greatest trading volume, resulting in high transaction turnover and consequently offering the highest profitability.

These specific major currency pairs are deemed the most suitable for day trading. If maximizing profit is your objective as a trader, it is advisable to concentrate your trading exclusively on these four most frequently traded currency pairings.

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 given direction within a market trend it is easier to make money as opposed to when prices aren't moving in a given direction - range market.

Conversely, all other currency pairings, categorized as minor forex pairs or currency crosses, account for only 33% of the total daily trading volume and are generally considered less liquid. This means they often exhibit limited market movement and their price changes tend to be choppy or confined within a range. As a result, these minor currency pairs present greater difficulty for technical analysis studies because they lack pronounced directional trends (they do not move decisively in a single trend).

For instance, by trading EUR/USD exclusively, a forex trader engages with approximately 125% of total trade transaction volume (85% market share for EUR/USD plus 40% overlap). This high activity is why some traders focus solely on EUR/USD.

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