: In the past topics we talk about
In forex market, currency is traded in pairs. Pairs have meaning in relation to each other so must always stay together. if one of the price of pairs raised that mean the other pair is lower
The two currencies in a currency pair are traded one against the other like Eur/usd for example , the Euro against Dollar . The rate at which they are traded is called the exchange rate. The exchange rate is affected by currency supply and demand
? What are kinds of the currency pairs
There are two kinds of currencies pairs in the Forex market: direct pairs and indirect pairs
A direct pairs : the price for one US dollar in terms of another currency like USD/AUD
An indirect pairs : the price for one UNIT of another currency in terms of the US dollar like GBP/USD
? What are the most common currency pairs traded in forex
There are many strong currencies that are used all over the world, but there only a handful of currencies that are traded actively in the forex market. In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of USA economy, the American dollar is the world's most actively traded currency
Anyways , the eight most traded currencies (in no specific order) are the American dollar (USD), the Canadian dollar (CAD), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Japanese yen (JPY)
Currencies must be traded in pairs. there are many different currency pairs that can be derived from those eight currencies alone. However, there are about 18 currency pairs that are conventionally quoted by forex market makers as a result of their overall liquidity
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