Which Currency Pair is the Most Active in Forex Trading?
EURUSD is the top forex pair for profits. It leads in liquidity and trading volume.
The high liquidity characteristic of EURUSD provides day traders with abundant trading avenues, as this currency pair frequently exhibits pronounced unidirectional movement. When a currency pair establishes a clear trend direction in forex trading, traders are presented with opportunities to place either buy or sell trade orders, contingent upon the observed trend bias.
Daily Forex Turnover of Currencies 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 forex currencies in terms of percent is shown below:
USD - 85%
EUR - 40 %
JPY - 20%
GBP - 13 %
CHF - 9%
Forex trades pair currencies, so the total adds up to 200 percent
For instance, the EUR/USD pair: EUR USD = 100% EUR + 100% USD
The cumulative total for the big four currency pairs equals 167% (calculated as 85 + 40 + 20 + 13 + 9), deriving from these five individual currencies that contribute to this sum.
This percentage of the total trade transaction turnover volume is what makes these four currency pairs to be known as major currency pairs or in short "majors".
These 4 currencies have the biggest part of all the money that changes hands each day, which is why they are great for Forex Day Traders.
The 4 major currency pairs or the big four in Forex are:
- EUR USD
- USDJPY
- GBPUSD
- USD/CHF
Which Currency Pair is the Most Active in Forex Trading?
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