What are the top currencies?

I am just new in forex and I would like to know the top currencies so I can focus more on trading them and investing on them. I would also like to know the factors that I need to consider when trading.

There are two ways to answer your question.

[B]First[/B], regarding single currencies, the most actively traded single currency is the U.S. dollar (USD), because the USD is the world’s reserve currency. The USD is involved in 85% of all currency transactions, worldwide.

After the USD, the most actively traded currencies are: the euro (EUR) 39%, the Japanese yen (JPY) 19%, the British pound sterling (GBP) 13%, the Australian dollar (AUD) 7.6%, the Swiss franc (CHF) 6.4%, and the Canadian dollar (CAD) 5.3%.

Note that when we talk about individual currencies, the worldwide percentages add up to 200%, not 100%, because there are two individual currencies involved in any currency exchange.

[B]Second[/B], since we trade currency pairs — that is, we always trade one currency against another currency — it makes sense to focus on what are the most actively traded pairs. The most actively traded pair is the EUR/USD, accounting for 28% of all currency exchanges worldwide.

After the EUR/USD, the next most actively traded pairs are: USD/JPY 14%, GBP/USD 9%, AUD/USD 6%, USD/CAD 5%, USD/CHF 4%, and USD/SEK 1%. That last one, in case you’re not familiar with it, is the U.S. dollar/Swedish krona.

There are dozens of additional currency pairs, but none accounts for 1% or more of worldwide turnover.

Just start off with EU first. Lowest spread.

There are many top most currencies that are used all over the world,that are traded actively in the forex market. In currency trading, only the most economically stable and liquid currencies are demanded in sufficient quantities,like…
1.U.S. dollar (USD)
2. Canadian dollar (CAD)
3. euro (EUR)
4. British pound (GBP)
5. Swiss franc (CHF)
6. New Zealand dollar (NZD)
7. Australian dollar (AUD)
8. Japanese yen (JPY).

Thanks for the responses so far, guys. To narrow this down a little more, I’d like to ask: Which currency (non-USD) is the most VOLATILE and BOUGHT MOST by institutions?

most volatile i think is audnzd? it moved like crazy.

I think it is AUD/USD or GBP/USD

If you have already decided on a trading platform, apply the average true range (ATR) indicator to a chart. It measures the average movement for a currency pair(or stock, or commodity) during the time frame that is being measured.

So let’s say you are thinking of trading the GBP/USD. Then let’s say you would like to use the Daily time frame. Select the Daily time frame and then apply the ATR. An ATR of .0155 means that this currency pair has an average daily range of 155 pips.

That works out to alot of movement during the daily time frame.

So you may want to stay away from this currency pair, GBP/USD, for now.

Take a look at USD/CAD.

The main pairs are all against the following:
Swiss Franc
Japanese Yen
British Pound
Brazilian Real
Canadian Dollar

There is alot of factors that you need to take into consideration.
If you would like to learn more, there is a lot of reading material on this topic; or feel free to shoot questions my way :slight_smile:
Keep Trading

I don’t like give advices, but for me (after eurUsd pair) GBPCAD is very good, i use it for long periods, the spread is not like on eurusd (i have 10 pips in my broker) but for last month only on this pair i earn 50% of my deposit.

US dollar can be the main currency which the whole world knows but there are also other currencies which can be taken into consideration like Euro or Riyal/Rial. They might look like they are not worth having but once you have it you can say that it can go with the flow side by side with the US dollar.

i agree that usdeur is the main pair of the forex world because it is very different, i try every day different pairs but i like this pair so much))

Between the 8 major currencies that have already been mentioned, and if you measure volatility by a daily or weekly range, then the most volatile is the GBP/NZD.
If you are a new trader, I have no idea why you would want to start off with such a fast moving pair. .
You can also go to tools> history center, then transfer that information to a spreadsheet, then input the formulas to get an overall average range for any pair. I’m not sure if I can give personal information like my e-mail, but I do have a range indicator that will show you at an instant glance which pairs are the most volatile.

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