The Major Trading Currency Pairs in the Forex Market

Michael Fasogbon

Updated: 2 December 2023

Service for copy trading. Our Algo automatically opens and closes trades.

The L2T Algo provides highly profitable signals with minimal risk.

24/7 cryptocurrency trading. While you sleep, we trade.

10 minute setup with substantial advantages. The manual is provided with the purchase.

79% Success rate. Our outcomes will excite you.

Up to 70 trades per month. There are more than 5 pairs available.

Monthly subscriptions begin at £58.

L2T Algo

RESULTS

Do you want to learn about forex trading?

Our Forex Signals

Forex Signals – 1 Month

Up to 5 Signals Sent Daily
76% Success Rate
Entry, Take Profit & Stop Loss
Amount to Risk Per Trade
Risk Reward Ratio
VIP Telegram Group

39£

Buy now

Forex Signals – 3 Months

Up to 5 Signals Sent Daily
76% Success Rate
Entry, Take Profit & Stop Loss
Amount to Risk Per Trade
Risk Reward Ratio
VIP Telegram Group

89£

Buy now

MOST POPULAR

Forex Signals – 6 Months

Up to 5 Signals Sent Daily
76% Success Rate
Entry, Take Profit & Stop Loss
Amount to Risk Per Trade
Risk Reward Ratio
VIP Telegram Group

129£

Buy now

The first way to go about it is by starting with understanding the currency pairs.

Eightcap - Regulated Platform With Tight Spreads

Our Rating

Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
Use our Secure and Encrypted Infrastructure
Spreads from 0.0 pips on Raw Accounts
Trade on the Award-Winning MT4 & MT5 Platforms
Multi-jurisdictional Regulation
No Commission Trading on Standard Accounts

71% of retail investor accounts lose money when trading CFDs with this provider.

Visit eightcap Now

The basics are simple in that the forex market works in a way that you can’t only trade a dollar weakness or its strength.

That won’t be enough; you have to pin it with other currencies to realize its value.

Therefore, the value of the currencies is only calculated when the currencies are traded in pairs. The major currencies drive the global forex market and are arguably the heavily traded currencies.

The Main Currency Pairs in Forex Trading

The most significant currency pairs in forex trading consist of five currencies; US dollar, Euro, Japanese Yen, Swiss Franc, British pound.

Also, it involves three less popular commodity pairs. So what are the leading pairs in the forex market?

EUR/USD (euro/dollar) – euro
USD/JPY (US dollar/Japanese Yen) – gopher
GBP/USD (British pound/dollar) – cable
USD/CHF (US dollar/Swiss franc) – swissie

Also, there’re other three less popular commodity pairs, and they include;

AUD/USD (Australian dollar/US dollar) – “Aussie.”
USD/CAD (US dollar/ Canadian dollar) – “loonie.”
NZD/USD (New Zealand dollar/ US dollar) – “kiwi.”

While the above are the major currency pairs, some traders go the extra mile to include some other currency pairings that do not feature the US dollar known as “cross currencies.”

Any currency participating in the free market can be traded in the forex.

Therefore, Polish Zlots, Czech crowns, and Romanian Lei can be traded as well. However, it not recommended that you go ahead and trade them.

These major currency pairs account for almost 95% of the trades in the forex market and have the least spreads.

Besides, the commissions are the smallest, and they’re widely traded by huge institutional as well as retail traders.

Is there a pair that’s more superior?

All the pairs are major in forex trading; however, the EUR/USD is more famous, and it’s the most traded pair with most forums dedicated to it.

Notably, each pair is unique in how it moves and when it moves, volatility as well as support and resistance areas.

Therefore, to master a currency pair requires a lot of time, but once it has been learned, the results are worth the input time.

For novice traders, it’s strongly recommended that they pick one or two pairs and then learn their swings.

Why Traders Trade Main Pairs

They say volume attracts more volume. With more size, the spreads between bid and ask price narrows, meaning majors have smaller spreads than the exotic pairs.

With the high volume, the significant pairs attract most traders keeping the volume high.

The advantage with high volume for traders is that they can enter as well as exit the market seamlessly with huge position sizes.

Moreover, high volume means more folks are willing to buy or sell at some point meaning there’s less chance for slippage or merely smaller slippage if it does occur.

What Determines the Prices of Major Pairs?

The main pairs are free-floating currencies, and hence their prices are determined by their supply and demand.

Furthermore, the central bank can have a hand in controlling the price, but only when preventing the price from falling or raising that it could even cause economic harm.

The major currencies are usually affected by main fundamentals such as interest rates, politics, economic data, and volatility.

Nevertheless, it’s always wise to choose liquid currency pairs, appropriate leverage, and the perfect trading time frame to ensure you come out of the forex market with profits.

TIPS FOR TRADING CURRENCY PAIRS

Forex traders utilize discipline and consistency in their trading. Here are some expert tips to kickstart your forex trading:

If you’re new to forex trading, choose liquid currency pairs like the EUR/USD or the USD/JPY. Then analyze the fundamentals and the technicals until you are familiar with what moves the currency pairs.
Determining the appropriate leverage is of crucial importance when trading currencies. Lots of beginner forex traders wipe out their accounts because they use excess leverage.
A forex trading strategy can help to ensure traders are consistent and disciplined. This can lead to profitability and deter loss, causing behavior.
Choose the best trading time frame to suit your needs. You can choose from swing-trading, day-trading, or scalping depending on which one appeals to you most.
Use our free trading forecasts on significant currencies to stay ahead of the forex market. And for daily updates on major forex pairs, view our currency market news and technical analysis articles.

AvaTrade - Established Broker With Commission-Free Trades

Our Rating

Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
Awarded Best Global MT4 Forex Broker
Pay 0% on all CFD instruments
Thousands of CFD assets to trade
Leverage facilities available
Instantly deposit funds with a debit/credit card

Get Lifetime Access

71% of retail investor accounts lose money when trading CFDs with this provider.

The Major Trading Currency Pairs in the Forex Market

Michael Fasogbon

TIPS FOR TRADING CURRENCY PAIRS

Join our Telegram Channels