Time for a Quick Lesson on World Currencies!
Time for a quick lesson on currencies, which are the building blocks of the Foreign Exchange market. The major world currency pairs include: • AUS/USD (Aussie dollar/US dollar) They are also known as the four majors. Most traders concentrate on those pairs only to grab some profit from the market. The other currency pairs that stand out from the rest are the three commodity pairs: • AUD/USD (Australian dollar/dollar) These currency pairs, along with the EUR/JPY, GBP/JPY and EUR/GBP contributes to more than 95% of all speculative trading in the FOREX market. On the market, only 18 pairs and crosses are actively traded. You may come across some retail traders dealing only with exotic currencies. The Czech koruna is an example of an exotic currency. What is the best currency pair to trade? My best advise to you is not to trade all currencies. Limit yourself to just a few currencies and master them. Which currencies you ask? Choose only the currencies that trade against the US dollar since they are the most liquid and allow you to make good profits. The EUR/USD is the most popular currency pair and is my personal favourite since I've made many a pips from it. This pair and the USD/JPY are the most heavily traded pairs and should definetely be included in your selection. Top of: World Currency Page Back to: Learn Forex Trading Page Back to: Forex Trading Domain Homepage
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