28 Major Forex Pairs List – Here at UrbanForex we are asked a common question: What are the best currency pairs to trade?
This article will tell you everything you need to know about currency pairs so that you can decide which are the best pairs for you to trade.
28 Major Forex Pairs List
Any major currency paired with the USD is known as a major pair, while other major currencies paired with each other are known as minors or crosses.
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When a major currency is paired with the currency of an emerging economy (such as Brazil, Mexico, Turkey, South Africa, etc.), it is known as a foreign pair.
It’s simple, the majors are the most liquid and widely traded currency pairs in the world, followed by the minors.
More liquid means less spread and less spread usually means less risk of slippage.
Liquidity refers to how active the market is. This is determined by how many traders are actively trading and the total volume they are trading.
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The forex market is liquid because it can be traded 24 hours a day on weekdays, but some currencies are more liquid than others (for example major and minor pairs are more liquid than exotic pairs).
Being more liquid makes it easier to buy and sell them, which means lower spreads.
The spread is basically the broker’s commission. It is the difference between the bid price and the ask price. The spreads in the majors are usually much smaller, sometimes as low as 1 pip.
Exotics, on the other hand, can have much higher spreads, which are usually in excess of 10 pips. This means that you need to overcome more than 10 pips before your trade becomes profitable.
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An exotic pair like CHFSGD (Swiss Franc and Singapore Dollar) has a spread of 11.2 pips while EURUSD only has a spread of 0.2 pips.
Because of their lower liquidity, exotic pairs can be more volatile than major and minor pairs. This volatility means that pairs can jump up and down very quickly.
This volatility causes brokers to hedge themselves with higher spreads, and these higher spreads also cause slippage with volatility.
With 28 pairs to choose from when looking at only the major currencies, there is no need to take on additional risk in trading exotic pairs (although the term exotic pair is more catchy).
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Even within the 28 pairs, you can narrow them down to your favorite 5-10 depending on the sessions to be traded.
I also have an article on the best times to trade, so keep an eye out for that.
By submitting, I consent to my data being collected through this form and agree to CitiForex’s terms and privacy. A forex currency pair refers to a pair of two currencies in the foreign exchange market whose value is relative to each other.
In the forex market, forex currency pairs are divided into three main types based on trading activity, liquidity and volume. The value of each currency is relative to the other currency in the currency pair. In foreign exchange market, we buy one currency and sell another currency during forex trading.
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A currency pair that includes the US dollar as the base or quote currency is called a forex major currency pair. Major currency pairs are the most widely traded currency pairs and are highly liquid.
Minor currency pairs do not offer all the advantages of major currency pairs, but they are still good for trading in forex. There are 21 minor currency pairs in Forex. GBP, JPY and EUR are the most widely traded minor currencies.
A pair of a major currency and the currency of a developing country (Turkey, Singapore, Mexico, etc.) is called a forex pair.
There are several disadvantages to trading forex pairs due to large spreads, high commission rates and low liquidity.
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EURUSD is the best currency pair to trade. It is the most traded currency pair in the world.
I hope you liked this article. Comment below for any query and share via below link. Use TradingView instead of MT4 for technical analysis.
Note: All the approaches here are based on technical analysis rules and are for educational purposes only. We are not responsible for any kind of loss in forex trading.
It will show you live areas where the price is likely to be tested in the future. It is very important for a forex trader to understand currency pair correlation in order to manage money correctly and not increase the risk in each. single business.
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Take a look at the two chart images below, the top one is EURUSD and the bottom one is GBPUSD. Both of these charts are on the daily time frame, meaning that each candlestick bar represents one day’s worth of price movement.
Now, if you look carefully, you will notice that the price action of the two charts are almost identical. Both these pairs are trending upwards at the same time although the pip value is slightly different from each other.
This means, if you get a strong trading signal in EURUSD, you are likely to get a similar trading signal in GBPUSD. In this case, if EURUSD increases, the price of GBPUSD will also increase.
You can see from the chart images above how well GBPUSD follows EURUSD or vice versa.
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The answer is no. You should not take trade entries in both currency pairs at the same time; Because it increases the risk of losing more of your capital.
For example, if you trade both the bullish candles of EURUSD and GBPUSD at the same time, you can get over 500 pips in EURUSD and 800+ pips in GBPUSD. That’s a huge savings, isn’t it?
But what if the price reverses and declines after you have traded these two currency pairs for a long period of time? As both currency pairs affect your stop loss, you can lose double. Which no one likes to face.
This is because EURUSD and GBPUSD have a strong positive correlation with each other. Currency pair correlation means the correlation between two currency pairs.
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Positively correlated currency pairs are those that move in the same direction at the same time, forming approximately the same price action patterns in the market depending on the strength of their correlation. This can happen in both bullish and bearish markets.
Therefore, in the above scenarios, both EURUSD and GBPUSD are positively correlated currency pairs because they both move in the same direction at the same time.
The correlation between EURUSD and GBPUSD is very strong and we can see that their correlation coefficient value is more or less +0.85. The more a currency pair’s correlation coefficient with other currency pairs reaches a positive +1 value, the more strongly the currency pairs are correlated with each other.
You can download the full list of 28 most traded currency pairs with their correlation coefficient values.
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However, apart from GBPUSD, EURUSD has a strong positive correlation with some other currency pairs such as AUDUSD, NZDUSD etc.
Correlated currency pairs tend to move in opposite directions, creating nearly identical price action patterns in the market depending on the strength of their correlation.
Let’s look at the same EURUSD daily chart image but this time with a different currency pair which is USDCHF
In the chart images above, the first is the same EURUSD chart you saw in our first example, but this time the second is the USDCHF daily chart.
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From the chart images above, you can see that USDCHF is moving in the exact opposite direction of EURUSD, forming opposite looking price action patterns that appear to be mirror images of each other.
Here, if the price of EURUSD rises, the price of USDCHF will fall because USDCHF has a very strong negative correlation with EURUSD and its other positively correlated pairs.
So, if you get a buy signal in EURUSD, you are likely to get a sell trade signal in USDCHF; You should never trade BUY EURUSD and SELL USDCHF at the same time.
Because if the EURUSD price moves in the opposite direction of your trade, the USDCHF price will also move in the opposite direction of your USDCHF trade. This will double your business loss.
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This is why you need to know the correlation between currency pairs to avoid opening multiple trades in multiple correlated currency pairs and then taking unnecessary multiple losses.
You should not open 7 to 8 trades in several correlated currency pairs, their correlation will affect your entire trading capital and put you out of the market!
There are 8 major currency pairs
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