What Are Major Currency Pairs?
In Forex you exchange one currency for another with the intention of making a profit. The seven most traded currency pairs in forex are called the Majors. They are:
- The Euro / US Dollar
- The US Dollar / Japanese Yen
- The Pound Sterling / US Dollar
- The Australian Dollar / US Dollar
- The US Dollar / Swiss Franc
- The US Dollar / Canadian Dollar
- The New Zealand Dollar / US Dollar
The Majors are often referred to by their nicknames:
- The Euro
- The Yen
- The Cable
- The Aussie
- The Swissy
- The Loonie
- The Kiwi
Compared to other pairs, the majors share certain characteristics that make them popular for traders. These characteristics are the reason they represent about 80% of volume traded on the forex market.
The reporting in their economies is plentiful and frequent which means that there is more information about these currencies.
Popularity of the majors also relies on their liquidity and low volatility. They are also less susceptible to manipulation and have tighter spreads than other currency pairs.
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