Forex currency pairs. 3 "different category groups" to choose from in the currency market
There are different forex currency pairs in the world of currency exchanges. The majors and cross-currencies pairs are the preferred in the currency market.
Almost 90 % of the investments traded on the foreign exchange markets are done in nine key currency pairs called...The "Majors"
The "Majors" forex currency pairs.
The "Majors” are those currencies where the most important countries are paired versus the U.S. dollar in the currency market (added below are their nick names in parenthesis):
The forex currency pairs crossesThe “crosses” are those pairs that are not paired vs. the dollar such as:
One thing to note is that you don’t have to have US dollars in all the forex currency pairs. Though NZD (New Zealand Dollar) is not a major currency in forex market some traders also get involved in NZD/USD currency pair since it has low spread and fairly easy to predict, so I added it in the list.
Nevertheless if you are new to currency trading it is always best to stick with the major currency pairs.
Also note that the US dollar is the most important currency in the currency market. According to a study conducted in 2008 approximately 84% of trades were in done in US dollars. The Euro is positioned in the second place with 37% of trading. You might be wondering why these numbers add up to more than 100%. This is due to the fact that there are always two forex currencies in every currency trade.
The Japanese Yen, British pound, Swiss franc, Australian Dollar and Canadian Dollar are just behind US$ and Euro in the respective order.
Exotic forex currency pairs
The “exotics” are those currency pairs in the currency market that represent emerging economies rather than developed/industrialized nations. Here are a few of the more commonly traded exotics:
Well my friend these are the most commonly traded forex currency pairs, remember to stick to the majors and the top of the list in the "crosses" if you are not yet profitable. Then you might venture to explore the others. Now let's look at the forex currency exchange venues...Click below to go there.
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