Examining the Eight Major #Currency Pairs

When it comes to a market that is dealing with massive amounts of money each and every day, the Forex or FX market is that market. On an average day more than £4 trillion passes through the FX, making it both extremely exciting and filled with stress. While the large banks tend to make up the bulk of the trading, there are plenty of investors in there as well who are trying to get their own slice of the pie.

Now because all these investments and trading are pouring in from all around the world, there are a number of currencies involved. Of those there are eight that are the most popular currencies and make up for the most amount of money. Here we’ll take a look at those top eight major currencies that are the most traded currencies in the whole world.

What is a Currency Pair?

Before we list the top eight currencies, you may be wondering what a “currency pair” means. When you are trading there is always going to be a pair. You will pick your base currency (the one you are investing in), and then you can view its counter currency (what its’ value is in another currency). This creates a currency pair. For example if you plan on investing $10,000USD into a Canadian investment you need to know what that USD amount converts to in Canadian. That would be your currency pair.

What Are the Major Currencies?

Even though there are 180 difference currencies around the world, it’s safe to narrow it down to the top eight most traded and used currencies. The oldest currency in the world is the British pound which began circulation back in the 8th century. As for the youngest currency in the world, that would be the South Sudanese pound, which came into existence in 2011.

As for the top eight currency pairs in the world, the list consists of:

• S. Dollar (USD)
• Euro (EUR)
• British Pound (GBP)
• Japanese Yen (JPY)
• Australian Dollar (AUD)
• Swiss Franc (CHF)
• New Zealand Dollar (NZD)
• Canadian Dollar (CAD)

In the forex market you can actually buy currencies as a way of making money. By doing this you can actually manage to make a profit when that selected currency goes down in value. If you plan on trading in currencies then you need to be able to anticipate how that currency will react, meaning when it will fall in value and rise in value. This will allow you to buy and sell at the ideal time.

If you're new to investments and trading, buying and selling currencies can actually be a great place to start. On average currency pairs fluctuate less than 1% per day, so you know you're pretty safe. Of course, there is never a guarantee. A great site to visit is https://investingoal.com/ which offers all kinds of useful investing information as well as social trading tools, guides, and advice. It can act as that starting point for you.

Becoming an Expert in Currency Trading

Currency trading is something that takes quite a bit of time to master, but being aware of the top eight currencies is an excellent place to start.

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