major forex pairs market share (2024)

FAQs

What is the most major forex pair? ›

The EUR/USD is the world's most heavily traded currency pair, representing more than 20% of all forex transactions. The USD/JPY currency pair is a distant second place, followed by the GBP/USD, and the USD/CHF with a small share of the global forex market.

What are the major currency pairs? The definition of 'major currency pairs will differ among traders, but most will include the four most popular pairs to trade - EUR/USD, USD/JPY, GBP/USD and USD/CHF.

The 6 Major Currency Pairs in Forex: A Guidance to the Most Traded Currency Pairs. In this post, we will look at the six major currency pairs in Forex: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD.

The AUD/JPY, AUD/USD, CAD/JPY, NZD/JPY, GBP/AUD, USD/MXN, USD/TRY, and USD/ZAR move the most pips daily but are not the most liquid currency pairs. Among highly liquid currency pairs, the EUR/USD and the GBP/USD move between 70 to 120 pips daily, followed by the USD/CHF and the USD/JPY.

The EUR/USD pair holds the throne as the most traded forex pair globally, known for its liquidity and stability. Traders often turn to this pair for its reliability and consistent profit opportunities.

Beginners might find the AUD/USD pair to be an excellent choice, since it is more predictable and less likely to spike or drop suddenly. In many studies, this pair has also been cited as one of the least volatile. In conclusion, the best currency pairs to trade for beginners are EUR/USD, GBP/USD, USD/JPY.

While there are many pairs you could trade for most traders, it is best to stick to one to five pairs and become an expert. There is always a temptation to change markets when making losses. Other forex pairs can appear to have stronger trends, higher volatility, and easier-to-make profits.

What are the best pairs to trade with small accounts? ›

Major Currency Pairs:Stick to major currency pairs like EUR/USD, GBP/USD, or USD/JPY. These pairs are more liquid and often have lower spreads, making them suitable for smaller accounts. Low Spread Pairs:Choose currency pairs with low spreads to minimize trading costs.

Major currency pairs like EUR/USD, USD/JPY, GBP/USD, and AUD/USD are popular choices among scalpers due to their high liquidity, tight spreads, and frequent price movements.

Calculating forex price moves

We open a position size of 10,000 units and calculate the pip value as follows: 10,000 (units) x 0.0001 (one pip) = $1 per pip. When you open a position of BUY and the market acts in your favor every pip movement will earn you $1.00 and the visa versa is true if you SELL.

Chasing profits: Trying to make more than 20 pips a day can lead to risky trading decisions and potential losses. Not having a solid risk management plan: Risk management is crucial in forex trading, and not having a proper plan in place can result in significant losses.

Going for 10 pips is a basis on which you can start collecting small gains and confidence. But, in my opinion, going strictly for 10 pips every time is not going to get you very far. Ending up with AVERAGE gains of 10 pips per trade is great, but that implies some of your trades are going to be worth more, some less.

The currency pair EUR/USD represents the two large economies- the USA and the European Union. It accounts for about 20% of the trading volume, resulting in tight spreads. It is among the most liquid forex pairs.

Because the US dollar (USD) is not used when calculating its exchange rate, the GBP JPY is known as a 'cross pair', and it falls under the 'minors' group in the forex market.