The forex market is one of the most volatile markets for trading. Despite being the largest financial market with several currency combinations available for trading, there are some top pairs that make trading both profitable and worthwhile. Here, learn more about the best currency pairs for forex trading.
What are Forex Currency Pairs?
Before proceeding further, it is important to know what currency pairs are. It must be noted that currencies are tradeable in pairs. This means when you purchase one, you are automatically selling the other. In every pair, there exists a base forex currency as well as a quote forex currency. Also, the price which is displayed for a pair represents the total amount of a quote currency that a trader will have to spend to buy one unit of base currency.
The Best Currency Pairs for Trading
As far as forex trading is concerned, the best or the top currency pairs for trading include:
If you are new to trading, then it is important that you note that EUR/USD is one of the widely traded currency pairs in the forex market. In fact, EUR/USD forex transactions made almost 24.0% of the trades in the year 2019. One of the reasons why this pair is mostly traded is because they represent the top two economies of the world.
Apart from this, USD/JPY, which is also referred to as ‘The Gopher’ is the second most favourite pairs in the world of currency trading. It represented almost 13.2percent of the entire forex trading in 2019. This pair has the potential to offer profitable and exciting opportunities for trading. Aside to the above pairs, GBP/USD with 9.6 percent of the entire forex trading in 2019 is the third most traded forex pairs. This is one of the most volatile pairs in the currency market that must be carefully analysed before placing any trades.