Currency Pairs: Most traded and most volatile forex pairs

The foreign exchange market is the largest and most liquid market in the world. It provides exchange between the currencies of both countries, including major currencies, minor currencies and foreign currencies. This product is a marketplace where you can trade hundreds of currencies. The world’s most traded currencies come from all continents and belong to some of the most powerful economies. Read along to learn more about currency pairs and which ones make it to the top!

What are currency pairs?

Currency pairs are national currencies of two countries combined for trading in the foreign exchange market (FX). Both currencies have a dominant exchange rate. All transactions in the foreign exchange market, whether selling, buying or trading, take place through currency pairs.

Overall, the eight currencies with the most trades are the US dollar(USD), the euro(EUR), the Canadian dollar(CAD), the Japanese yen (JPY), the British pound(GBP), the australian dollar(AUD), Swiss franc(CHF) and Chinese yuan(CNY).

Most commonly traded currency pairs

You can trade the currency of almost any country, but some currencies have a higher combined frequency than others. Every major currency pair has a US dollar. The United States dollar (USD) is the most widely used trading currency in the world, which is why most traded currency pairs use the United States dollar as their primary or quota currency. When combined with other currencies from some of the world’s largest economies (including China, Japan and the UK), they are considered important cross-currencies.

Traders are very interested in large currency pairs because they represent the richest and most stable economy in the world and can be used by traders to accurately represent distributions of low market value. Major currency pairs are usually the most traded currencies among beginners.

Top ranked currency pairs

Some of the top currency pairs are:

  • USD/JPY: “Gopher” is a combination of the US dollar and the Japanese yen. Due to the popularity of the Japanese yen in Asia and the US dollar around the world, it is one of the most popular currency pairs in the world. It has excellent liquidity and allows traders to buy and sell multiple currency pairs as long as prices do not fluctuate much due to exchange rates. 
  • EUR/USD: “The Fiber” is a combination of Euros and US Dollars. It is usually considered the currency pair with the highest trading volume and the currencies of the two largest and most prestigious economies in the world. This currency pair has very low spreads, high liquidity and can increase trading volume. 
  • GBP/USD:  “Cable” is a combination of British pounds and US dollars. Due to frequent fluctuations in prices, exchange rates and pip value changes, it is considered a highly volatile currency pair. If the trader succeeds, it can lead to huge profits; however, when the market is volatile, you can lose a lot of money. GBP/USD is very popular with day traders who want to take advantage of price fluctuations by entering and exiting the market quickly and accurately.