The Major Currencies

There are seven currencies which are being traded each day by far the most of all. These are referred to as the so called “Major Currencies”. No less than at least 85% of the entire daily currency trade consists of one of these seven currencies.

The major currencies

major currencies percentages

*** As a transaction always concerns a two currency trade, the total transaction percentage consequently amounts to 200%.

The major currency pairs

Currencies are always being traded in pairs, the so called currency pairs. There are 4 major currency pairs which are being traded by far the most on the forex market and these pairs are a combination of the above mentioned major currencies.

The most traded currency pairs on the forex market are:


De advantages of a major currency pair

If a currency pair is traded with a high frequency, this definitely will have quite a number of advantages. This way the spread of currency pairs of which a lot is being traded on the currency market, is often lower than the spread of currency pairs of which comparatively less is traded.

As the liquidity of a major currency is being larger, the price will be coming into movement more frequently. As a result of which there will be more possibilities to trade. A currency pair which is hardly able to get into motion, is less interesting to trade because there is comparatively limited space to get advantage of a price movement.

Be Sociable, Share!

Speak Your Mind