The 5 Most Traded Currency Pairs in 2022

This pair is excellent for beginners due to it is predictability. Traders should pay attention to influential factors, including recessions and economic crises, as they play a considerable role in the currencies’ value. Margin trading in the financial markets is speculative and implies a high level of risk, including full loss of deposit. Likewise, if you’re a counter-trend or a mean reverting trader, you’ll want to trade currency pairs that have mean reversion characteristics. This tells you that if you’re applying a trending or a breakout strategy, you want to focus on currency pairs that have trending characteristics.

As a result of this, the spreads on the EURUSD are usually close to one pip or at times even lower . This attribute gives you the confidence that no matter at what time you trade, there is sufficient liquidity in the EURUSD market. Bear in mind that we focus on short-term or intraday trading strategies.


Two major events that have significantly influenced the price of the GBP in the last decade. During the years 2007 through 2008, the price of GBP wildly fluctuated due to the worldwide influence of the Great Recession. If you are located in the United States, your base currency is probably USD. Spot opportunities, trade and manage your positions from a full suite of mobile and tablet apps. Currency trading, or forex, is the process of exchanging one currency for another or the conversion of one currency into another currency. The information in this site does not contain investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument.

best currency pairs to trade in forex

So, in order to promote responsible trading, we have limited our trading signals to only 3 per week. Any thing more than that needs a thorough consultation with your truly, to analyze your current account, open positions, available margin, investing portfolio, and more. “The Gopher” is a combination of the US dollar and the Japanese yen. It is one of the most popular forex pairs in the world due to the prominence of the JPY throughout Asia and the USD worldwide. It boasts a high liquidity, meaning that traders can buy and sell the currency pair in large volumes without the price fluctuating too much in its exchange rate.

Tips for Forex trading beginnersIn terms of trading volume, the Forex market is the largest financial market in the world. It is also the only financial market that operates round the clock every day. Margin trading is one of the most common derivative strategies used in financial markets. It can also be considered tax-efficient as it allows you to choose the size of your wager and exempts profits earned from stamp duties and taxes.

The ever-changing nature of the financial markets doesn’t offer guarantees such as this. However, the assets mentioned above do have a history of retaining their value when things turn sour. The US dollar often enjoys the same “safety net” status, however, when matched up against a more formidable safe haven, the currency tends to move lower during times of economic unrest. In fact, Canada exports over 2 million barrels a day to the US alone.

An exotic Forex pair is a combination of a major currency and the currency of a developing economy. Exotic Forex currency pairs have less volume compared to the major and minor currency pairs. In the meantime, volatility in these pairs joseph hogue review can be much higher than Majors and Minors. Currency pairs are used to draw the comparison between the value of one currency with another. So your choice wouldn’t depend on how well the economy of your currency of choice is doing.

USD and the JPY relationship

Due to this unique nature of USDJPY, it also moves in line with other safe-haven instruments such as USDCHF and Gold CFD. Another unique aspect of the USDJPY is that it is a safe haven instrument. Thus, during times of uncertainty, the USDJPY tends to depreciate, as the Japanese yen strengthens.

When should you not trade?

  • When you have to think about the trade.
  • When you don't know where your stop goes.
  • If the market does not favor your system.
  • When you want to “catch up”
  • When you think that markets are “too high” or “too low”

In the unlikely event that the fundamental news reverses direction of your currency pair, you can easily exit the trade. For example, one currency pair may move just around 20 pips on average. But there are also currency pairs that can move on average 50 pips, if not more. A currency pair is a pairing of currencies where the value of one is relative to the other. For instance, EURUSD is the value of the euro relative to the U.S. dollar. Over the years the yen has been one of the more consistent safe haven currencies, which has made it my go-to currency when fear begins to grip global markets.

Traders could make profits without market hustling and high volatility. Choose which currency pair you would like to trade, either from our most traded currency pairs list or a more exotic pair. This article is a guide to some of the most popular forex pairs to trade right forex software developer now. Although it’s not as aggressive as scalping or day trading, swing trading is still best done within shorter time frames that allow traders to capture profits quickly. The longer you have to wait to realize a profit, the less lucrative this strategy will be over time.

This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading. It’s a trustworthy, stable, and reliable currency, which makes it the most used in international transactions. The American Dollar is widely accepted throughout the world as a medium of exchange, and a means of payment, in many countries. An hourly volatility chart shows how many pips—hundredths of a yen—the USD/JPY pair moves each hour of the day. MoneyMiniBlog does not claim to be a financial, legal, or professional counseling service.

Safe Haven Currencies: Your Virtual Bomb Shelter

So as you might expect, just like oil exports heavily influence the Canadian dollar, the Australian dollar is at the mercy of the country’s gold exports. Although the correlation is never static, over the last ten to fifteen years, the Canadian dollar has held a positive correlation to oil of more than 75% on average. As the name implies, commodity currencies are those that rely on their respective country’s export activities. And keep in mind that the ZARJPY is relatively “mild” in terms of the chop you might see on any given day.

best currency pairs to trade in forex

EURGBP is the first Minor Forex Currency pair that makes it to our list of top 10 most traded forex pairs. This is because of the historic link given in the proximity of the UK to Europe. The USD/JPY currency pair, also known as ‘the gopher,’ puts the US dollar against the Japanese Yen. USD/JPY is the second most traded forex currency pair on the market, representing 13.2% of all daily forex transactions as of 2019. The high trading volume of EUR/USD ensures that this pair has a lot of liquidity, resulting in tight spreads.

Best Forex Pairs to Trade at Night

The Canadian dollar’s value is also closely linked to commodities prices. Because Canada’s economy is primarily reliant on oil exports, the price of oil has a significant impact on the value of the Canadian dollar. Oil prices plunged to levels not seen in over a decade in 2016, and the Canadian currency suffered as well, falling to a 1.46 CAD to 5 Day Trading Strategies for Beginners 1 USD exchange rate. If you want to convert USD to CAD, keep an eye on the oil price to see when the best moment is to buy. The Australian dollar is Australia’s official currency and the world’s sixth most traded currency pair. The value of the AUD is strongly linked to the CAD value due to the economies of Australia and Canada’s interdependence.

But, we have done the research for you, and in this article, you will learn five steps to choosing the right currency pair every time. In this article, you’ll know which currency pairs are the most popular among traders, and what every trader should know about them. Due to global time zone differences, there is always a forex market open for business somewhere during the week.

As you get started with forex swing trading, it’s important to watch a wide range of pairs so you can identify the best opportunities. If you limit yourself to monitoring only a few swing trading options, you’re likely to miss out on high-value trading opportunities. Since CHF is usually turned to primarily only during economic volatility, it is not as actively traded as other currency pairs on this list.

Trading in Rockfort Markets derivative products may not be suitable for everyone as derivative products are high risk. A Product Disclosure Statement can be obtained here and should be considered before trading with us. Sign up for all the latest updates from our Rockfort Academy including news, industry analysis and updates from trading central team. Trading in Rockfort Markets derivative products may not be suitable for everyone as derivative products may be considered as high risk.

Managing Yo Time Wisely

EToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Stay on top of upcoming market-moving events with our customisable economic calendar. Economic growth in South Korea has been so impressive – especially since the end of the Korean war in 1953 – that people often refer to it as the Miracle on the Han River. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas.