What Are The Most Traded Currency Pairs?

Important Disclosure: Trading forex pairs involves high risk, and many accounts lose money when trading. Please consider whether you can afford to take the high risk of losing your money, and only trade with capital you can afford to lose.

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What is a currency pair?

A currency pair is a way of displaying how much of one currency you need to purchase another, forming the basis of currency trading in the forex market. Every individual currency is given a three-letter code – such as USD for the US dollar or EUR for the Euro. Using those two as an example, the pair would be displayed as USD/EUR. In this case, the USD is the base currency and the EUR is the quote currency. One can strengthen or weaken in relation to the other, which is where the opportunities arise for forex traders. Since currency pairs in the forex market are always traded in pairs, they reflect how one economy performs relative to another.

Find out more in our comprehensive guide to currency pairs.

What are the most traded currency pairs?

The Bank for International Settlements (BIS) last published its Triennial Central Bank Survey in October 2022, with the next set of preliminary results due on September 30, 2025. All figures in this guide are based on the 2022 release, as more recent global data hasn’t yet been published.

The report contained data on the average daily over-the-counter (OTC) foreign exchange turnover, and all the figures quoted in this guide are accurate as of that release. Here’s a rundown of the top five most traded currency pairs, which are also considered the major forex pairs due to their daily volume and global importance

1. USD/EUR

Average daily turnover: $1.71 trillion ($1.58 trillion in 2019)

Proportion of all forex trades: 22.7% (24% in 2019)

The USD/EUR currency pair represents the most actively traded pair in the forex market in the world, bringing together the world's two largest major global economies. Given the economic significance of both regions, developments in either the United States or Europe can substantially influence market dynamics.

Traders focusing on this pair typically monitor interest rate decisions from the Federal Reserve and the European Central Bank closely, as these major economic announcements often have considerable impact on the relative valuation of the dollar against the euro. Understanding these factors is crucial for making sound trading decisions when trading the major forex pairs.

Despite being the most widely traded currency pair in the world, USD/EUR maintains relative stability compared to other pairings. The characteristically tight spreads enable traders to execute larger positions with minimal market disruption. The pair's substantial daily trading volume ensures robust liquidity, consistently attracting significant interest from market participants worldwide.

2. USD/JPY

Average daily turnover: $1.01 trillion ($871 billion in 2019)

Proportion of all forex trades: 13.5% (13.2% in 2019)

The latest BIS report reveals that the Japanese yen (JPY) is the third most traded currency in the world, behind the US dollar and the Euro. The Bank of Japan publishes regular financial reports, which USD/JPY traders will pay close attention to. Meanwhile, Japan's typically strong economy is partly underpinned by a thriving export industry, with automobiles and technological products featuring heavily. USD/JPY is also one of the most heavily traded major pairs in the forex market, offering traders reliable price action and consistent trading opportunities.

3. USD/GBP

Average daily turnover: $714 billion ($630 billion in 2019)

Proportion of all forex trades: 9.5% (9.6% in 2019)

The US dollar and the British pound are respectively first and fourth on the list of most traded individual currencies. As a pair it sits third and USD/GBP is sometimes referred to as 'cable', which is a nod to the underwater telegram wires that were used to communicate quotes between New York and London. In the more recent past, major political developments such as Brexit have had a significant impact on the pound's performance. And as with any of the world's most traded currency pairs, USD/GBP traders will monitor announcements from the Federal Reserve and the Bank of England with great interest, as these events often trigger sharp currency movements that can create short-term trading opportunities.

4. USD/CNY

Average daily turnover: $495 billion ($270 billion in 2019)

Proportion of all forex trades: 6.6% (4.1% in 2019)

Of the five most traded currency pairs, the US dollar and Chinese yuan has seen the greatest surge in popularity. In the three years between the latest BIS surveys, the average daily turnover of USD/CNY trades rose 83%. You may see the abbreviation CNH, which refers to when the yuan is traded outside mainland China. CNH can be more volatile than CNY because it is not as closely regulated by the Chinese authorities. Meanwhile, some predict that the yuan will still show signs of volatility as China, the epicentre of the coronavirus outbreak, continues its recovery from the pandemic.

5. USD/CAD

Average daily turnover: $410 billion ($287 billion in 2019)

Proportion of all forex trades: 5.5% (4.4% in 2019)

The Canadian dollar was pegged to its US counterpart until 1970, when the decision was made to float it freely on the market due to "heavy upward pressures". The USD/CAD pair is sometimes described as the 'loonie' – a reference to the loon bird that appears on the latter's $1 coin. Canada's primary export is crude oil, so traders will monitor the price of that commodity as it will closely reflect the performance of the CAD and, by extension, its value in relation to the USD.

These top traded pairs are all major currency pairs, which typically include the US dollar as the world's primary reserve currency paired with another major currency. Other major pairs include USD/CHF involving the Swiss franc, a safe-haven currency, and AUD/USD with the Australian dollar. In contrast, cross currency pairs do not involve the US dollar, such as EUR/GBP, while exotic pairs pair a major currency with an emerging market currency and often have higher trading costs.

What are the benefits of speculating on the most traded currency pairs?

There are a number of reasons why it could prove advantageous to add the most traded currency pairs to your portfolio:

• Low volatility. The most popular pairs are comprised of major currencies, which tend to offer greater stability in reflection of the wider economic status of their countries. This means they are not as susceptible to sudden, significant price movements, and this can allow you to trade with greater certainty.
• High liquidity. You can buy and sell the most traded currency pairs with ease thanks to their high liquidity, which also helps keep trading costs low during active trading sessions. Trillions of dollars' worth of trades are placed every day across the forex market, and you should always be able to open and close your positions as and when you need to.
• High volume. The sheer amount of trades – even on a daily basis – offers opportunities. Such a wealth of data means you can monitor and identify trends and patterns with greater accuracy, helping you to inform your decisions.
• News coverage. As the most traded currency pairs are linked to the world's major economies, they attract extensive news coverage. Any events that could impact the performance of these pairs is likely to be well documented, which makes it easier to feed into your fundamental analysis.

What are the risks of speculating on the most traded currency pairs?

There are no guarantees with any form of trading, and it's important that you're aware of all the potential pitfalls before taking up any positions in the forex market:

• Trading on leverage. You can trade currency pairs on margin, which enables you to open a position for only a fraction of the capital you'd need in a conventional trade. While this offers the chance to amplify your profits, you also run the risk of multiplying your losses, as the outcome is based on the value of the full position, not just your initial deposit margin.
• Low volatility. While this can play to your advantage in that it may reduce the chances of incurring sudden, significant losses, it can also work against you. Low volatility can limit your ability to make major profits on individual trades, as prices for the most traded currency pairs do not tend to fluctuate as wildly.
• Lots to monitor. There are several factors that can influence the performance of a currency – such as interest rate announcements from central bank policies, fiscal policies, political developments, and even major weather events. Pairs involve monitoring these across different trading sessions, which can be time-consuming. It can be overwhelming and time-consuming to keep abreast of everything that could shape your analysis and inform decisions.

How to trade the most traded currency pairs

There are a few key steps you need to take before you begin trading:

Select your instruments

You can trade currency pairs via derivative products such as contracts for difference (CFDs). Both are leveraged forms of trading – although there are some key differences in the mechanics of how they work. To start trading, choose reliable trading platforms that offer access to these instruments with competitive trading costs.

Choose your strategy

There are a number of different ways you can trade currency pairs. You might prefer a short-term strategy like day trading. Alternatively, you could take a longer-term view with position trading. Find out more in our guide to forex trading strategies or check out our articles on:

• Day trading
• Trend trading
• Position trading
• Swing trading

Undertake your analysis

Even for popular assets like the most traded currency pairs, opening and closing positions require consideration and plenty of research. Most traders would recommend a combination of fundamental and technical analysis. The former refers to your monitoring of the various news developments that could impact a currency's performance. The latter involves the use of charts, graphs and other analytical tools that help you identify trends and patterns. Pay particular attention to central bank policies, as they can significantly impact major currency pairs.

Implement risk management

Before you enter any position, you need to be aware of the potential downside and you should only trade at a risk-reward ratio that you are comfortable with. One effective method of mitigating your risk is using a stop loss. These are pre-set conditions, determined by you, that will automatically close a position when an asset's value reaches a certain price. So, you are effectively capping your losses in the event that the market moves against you.

Access the world's most traded currency pairs with Tradu

With Tradu you can trade USD/EUR, USD/JPY, USD/GBP and all the other most commonly traded currency pairs through our proprietary platform. We offer an outstanding selection of analytical tools to help you shape your strategy as well as rapid execution of trades. All that is available via a single login, so open your account with Tradu today and start exploring the possibilities that the world's most traded currency pairs have to offer.

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