Have you ever wondered how many currencies are traded in the forex market? According to recent statistics, there are 170 international currencies that are exchanged in the world’s largest financial market. Now just imagine how many currency pairs can be formed from the combinations of all those currencies. So, if you believe that every pair is equally profitable in forex trading, then you are wrong.
There are 6 currency pairs that are called the major pairs in the forex market. These are the most actively traded pairs that make up almost half of the forex market’s daily turnover. EUR/USD is the top-ranked among them, with the most trading volume. It is this popular because the US and European economies are the strongest in the world.
Let us share some benefits of trading the most popular currency pair in the forex market: EUR/USD.
- Most forex investors trade with this pair because it has high liquidity, which means it has a lot of active buyers and sellers in the market for this pair.
- It also means that it has the best trading conditions with little to no chance of slippage.
- Due to its popularity this pair has the highest trading volume in the forex market which is 24%. High trading volumes give better trading opportunities to traders.
- This moves very smoothly in general without giving fake-outs that is why it is preferred by many traders that want to play safe.
- Although it moves slowly in comparison with other pairs, it gives the best trading conditions for swing traders looking for long-term traders.
- EUR/USD also has a good quality of moving in one direction for a long time that makes it easier for strategists to plan their move.
- Since it’s a popular pair to trade, you can learn so much about this pair as there are so many blogs, articles, news, and research material already available on the internet.
It is advised that the scalping trading method is not that good for this particular pair. The strategies mostly used while trading with this pair are Breakdown/Breakout, Pullback, and Range Pattern.
Moreover, it is also important to stay updated about the news and events related to these currencies, understand their relationship with each other, and have a good amount of knowledge on this pair.