➤ Main Trading Forex currency pairs 2019

➤Trading Forex currency

Forex currency pairs are one of the primary concepts that you must learn to master the trade. It is usual for people newly born in the forex market to have trouble understanding this concept, although in reality it is easy to understand with a little logic.

Unlike the stock market, where you have to buy or sell shares in publicly traded companies, in Forex you must trade with currencies. If you want to buy a certain currency, you must do it with a different currency.

For this reason, in your trading platform you will see how the price quotes are presented in pairs like EUR / USD or USD / JPY .

Base and quoted currency

Let's take one of the most popular and popular pairs in the world: the EUR / USD. The first currency of this pair is called the currency base, while the second currency is known as a quoted currency.

The US dollar is the most common currency, although it is possible to find some exceptions (such as USD / JPY).

Prices of currency pairs

The prices that appear in the pairs represent the values ​​of the base currency in the function of the quoted currency. This means that, for example, the EUR / USD: 1,2345, means that each euro costs 1,2345 US dollars. This is the way to read currency pairs.

Forex exists thanks to the vast majority of countries in the world its own currency and that there are people who must carry out international transactions. This phenomenon makes the liquidity of the foreign exchange market truly incomparable.

In terms of liquidity, no group of currencies is as good as the so-called senior Forex pairs. These are the most negotiated and popular pairs in the world, so it's worth paying attention to them.

Forex currency pairs majors

Forex is made up of a large number of currencies from various countries in the world. However, few can really be classified as major currency pairs.

This forex currency classification is made up of the most traded and popular instruments on the planet. Precisely this popularity makes them so desired by operators, that they offer good opportunities for negotiation.

The currency pairs are composed of the US dollar (USD), the pound sterling (GBP), the euro (EUR), the Japanese yen (JPY), the Swiss franc (CHF), the Australian dollar (AUD), the dollar New Zealand (NZD) and the Canadian dollar (CAD). The currency traded is the US dollar (except for USD / JPY). These pairs make up 95% of the total market operations.

This is the list of Forex major currency pairs:

● GBP / USD

● CAD / USD

● EUR / USD

● USD / JPY

● CHF / USD

● AUD / USD

● NZD / USD

As you can see, there are actually a few major currency pairs. This has to operate in Forex.

Energy currency pairs

Within the major pairs of currencies, there is a subcategory of currencies that are strongly influenced by the movements of commodity prices. Oil, gas, gold, silver and other materials are of great importance to nations such as Australia, Canada and New Zealand. For this reason, the NZD / USD, CAD / USD and AUD / USD pairs are called "energy" pairs.

For example, when the price of oil rises, the Canadian dollar is valued. For this reason, energy pairs represent trade opportunities.

Many people negotiate with these instruments.

Reading currency pairs

Reading currency pairs is really simple. Let's examine the following example:

Imagine that you have the EUR / USD pair: 1.2344 - 45. This is the way the quotes usually appear on the trading platform. As you can see, there are two prices. The first one (1.2344) corresponds to a sale price and is the amount of quoted currency that would receive a change of one unit of base currency. Taking the example again, this means that you would get $ 1,2344 for selling 1 euro. The second price (1.2345) corresponds to the purchase price and the amount of quoted currency that you must pay to acquire a unit of base currency. Again with the example, this means that you must pay 1,2345 US dollars to buy 1 euro.