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CURRENCIESARE TRADED IN PAIRS CURRENCIESARE
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www.jrq.com CURRENCIES ARE TRADED IN PAIRS Forex trading is the simultaneous buying of one currency and selling another. Currencies are traded through a broker or dealer, and are traded in pairs For example, the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY). When you trade in the Forex market, you buy or sell in currency pairs. Imagine each pair constantly in a "tug of war" with each currency on its own side of the rope. Exchange rates fluctuate based on which currency is stronger at the moment.
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www.jrq.com MAJOR CURRENCY PAIRS Following currency pairs are the major pairs out of all listed currencies. Out of these U.S. Dollar is the most tradable currency. Following provides the maximum liquidity in market. PAIRCOUNTRIES FX GEEK SPEAK EUR/USDEuro zone / United States"euro dollar" USD/JPYUnited States / Japan"dollar yen" GBP/USDUnited Kingdom / United States"pound dollar" USD/CHFUnited States/ Switzerland"dollar swissy" USD/CADUnited States / Canada"dollar loonie" AUD/USDAustralia / United States"aussie dollar" NZD/USDNew Zealand / United States"kiwi dollar"
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www.jrq.com Currency pairs that don't contain the U.S. dollar (USD) are known as cross-currency pairs or simply as the "crosses." Major crosses are also known as "minors." The most actively traded crosses are derived from the three major non-USD currencies: EUR, JPY, and GBP. MAJOR & MINOR CROSS-CURRENCY PAIRS
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www.jrq.com MARKET SIZE AND LIQUIDITY Forex market trades all over the globe, there is no any specific location which can be considered as a locus point. Trades can be executed at any place, wherever you want. This market is one of the biggest market which are being trade across globe. As compare to equity, commodity and any other this has the largest liquidity and volume. Traders or organization can trade any pairs depending upon the avilable cash, market situations and price of the pairs.
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www.jrq.com TEN MOST ACTIVELY TRADED CURRENCIES (The chart above indicates that how often the U.S. dollar is traded in the Forex market. It is on one side of 87% of whole reported transactions)
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www.jrq.com The dollar is the most traded currency, taking up 87% of all transactions. The euro's share is second at 33%, while that of the yen is third at 23%. As its visible, most of the major currencies are hogging the top spots on this list TEN MOST ACTIVELY TRADED CURRENCIES
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www.jrq.com THE DOLLAR IS SUPREMO As per International Monetary Fund (IMF), the U.S. dollar comprises roughly 60% of the world's official foreign exchange reserves. Because almost every investor, business, and central bank own it, they pay attention to the U.S. dollar.
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www.jrq.com SPECULATION Most of the currency fluctuation is based on speculation market. As per research 90 percent transactions out of all are part of speculation market. Financial and commercial transaction constitute very less part in over all market. Market movements are based on intraday calls rather than long term forward and future market. Major liquidity is contributed by speculation at any moment. Liquidity is the driver of currency market. High liquidity provides higher chances of fluctuation so as the opportunities to earn money. More liquid market gives opportunities to make pips sooner than low liquid market. As Forex market is very liquid compare to other markets, depth varies from pair to pair as per timing zone. Different time zones provides different levels of liquidity depending upon the pairs being traded.
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