Most Tradable Currencies in Forex

How long has it been since I last posted anything in ForexTradingLifestyle, a month? It’s been a long time and I surely missed it. Perhaps you could say that I had a long vacation which is what everybody needs right now. And besides, it’s summer.

Moving forward, something very exciting is about to happen in the next few months. I don’t want to give too much detail about it until (my boss) Trading Mastermind founder Scott Shubert makes an official statement. So until that time, my mouth is zipped. Recently, I read an interesting article regarding currencies that reminded me a lot of the surprise Mr. Shubert is keeping under wraps.

There are a lot of currencies used in the world but not all of them can be traded actively in the foreign exchange market. And it is not a hidden fact that among all of these currencies, only eight of them are frequently traded.

In general, the eight most traded currencies (in no specific order) are the U.S. 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).

According to Mr. Shubert, the Euro, the Great British Pound, the U.S. dollar, the Japanese Yen and the Swiss Franc are called the major currencies and most forex trading involves combination of pairs among these five.

On the other hand, the most commonly traded currency pairs are: EUR/USD, GBP/USD, USD/JPY and USD/CHF. Currency pairs that do not include the US dollar are called “cross pairs”. These usually refer to the EUR/GBP, EUR/JPY, EUR/CHF, GBP/JPY and others.

Forex brokers usually have at least 10 currency pairs available which include: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, EUR/JPY, EUR/CHF, EUR/GBP, and GBP/JPY. Most brokers now have a total of 20-26 currency pairs altogether including those above as well as: CHF/JPY, NZD/USD, GPB/CHF, AUD/JPY, EUR/AUD, EUR/CAD, AUD/CAD, NZD/JPY, CAD/JPY, GBP/CAD, GBP/NZD, GBP/AUD, AUD/NZD, CAD/CHF, AUD/CHF, NZD/CHF, and USD/MXN.

An article in Investopedia stated that the South African Rand (ZAR) is also amongst the most tradable currencies. The ZAR is one of the emerging market currencies with an average daily range of 870 pips.

What usually makes a currency tradable?  Again, according to Investopedia, in currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. I would still have to ask Scott’s POV on this since he is of course the subject matter expert.

That’s it for now. Did you have a great weekend? I sure hope you did. Have a great trading week ahead!

Forex Trading Videos