Which currencies can I trade?

Currency is always measured against another currency and they are referred to as currency pairs. Currency pairs are generally segregated into groups. These groups are known as Majors, Minors and Exotics. Major currency pairs are generally the most popular traded currency pairs. As you’ll see in the table below, the major currency pairs all include the U.S. Dollar (USD).

Traders will speculate on the future direction of currencies by taking either a long or short position, depending on whether you think the currency’s value will go up or down.

Major Currency Pairs

Euro/U.S. DollarEUR/USD
Great British Pound/US DollarGBP/USD
U.S. Dollar/Japanese YenUSD/JPY
U.S. Dollar/Swiss FrancUSD/CHF
U.S. Dollar/Canadian DollarUSD/CAD
Australian Dollar/U.S. DollarAUD/USD
New Zealand Dollar/U.S. DollarNZD/USD

Minor Currency Pairs

While the major currency pairs make up the majority of the market, you shouldn’t ignore the minors – also referred to as Cross Currency Pairs. The minor currency pairs account for all the other combination of major markets such as; EUR/GBP, EUR/CHF and GBP/JPY.

With so many options available, you’re probably asking yourself – which currencies should I trade? A good rule of thumb for traders new to the market is to focus on one or two currency pairs.

Generally, traders will choose to trade the EUR/USD or USD/JPY because there is so much information and resources available about the underlying economies. Not surprisingly, these two pairs make up much of global daily volume.

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