The Most Traded Currencies
The six major currencies of Forex dominate the overall market share. 76% of all trades have both currencies in the currency pair as a major, and more than 98% of all trades involve at least one major.
Both of these figures are well beyond what would be expected if foreign currency trading were based solely on the majors’ share of world GDP (74.5%), demonstrating the value the majors command abroad relative to other currencies. Another way of thinking about the majors’ predominance in the currency markets is to compare the rest of the world’s economic output (25.5%), to the less than 2% share of Forex speculation that does not have a major on either side of the currency pair.
The most common currency pairs are EUR/USD (30%), USD/JPY (20%), GBP/USD (11%), and USD/CHF (5%), which together totals 66% (two-thirds) of all Forex spot trades.
The Dollar, Euro, Yen, and Pound are the most traded currencies. The six majors combine for a huge bulk of the trading transactions in a single day. Corporations and banks have known this for years, and have often used Forex for hedging purposes. With the increase in global trade, multinational corporations have likewise used the forex market to manage their risk in changes in currency rates.
HOW TO TRADE BITCOIN CFDS
Although bitcoin is not traded on the forex market (unlike regular currencies), it is possible to trade bitcoin CFDs, as this does not involve actually owning bitcoin as an asset. This means speculating on the cryptocurrency’s price movements against a regular currency (i.e. whether it will rise or fall in value). If it moves with you, you profit, if it moves against you, you make a loss.