Forex trading, also known as foreign exchange trading or currency trading, is the act of buying one currency while simultaneously selling another. Forex traders use Forex brokers to take advantage of changes in the relative values of different currencies – they can make money when a currency’s value appreciates against another. Forex trading involves understanding which pairs of currencies are most heavily traded, as well as how movements in each currency will affect the Forex market. In this article, we’ll take a look at the major currency pairs and explain their importance to Forex traders.
What are Forex Pairs?
Forex pairs are essentially two currencies that make up a Forex pair, such as EUR/USD. Forex traders look for opportunities to buy or sell a currency relative to another currency in the Forex market. Forex pairs can be broken down into three categories – majors, minors and exotics.
The Major Currency Pairs:
There are 7 major Forex currency pairs; these include USD/EUR, GBP/USD, AUD/USD, USD/JPY, USD/CHF, NZD/USD and CAD/USD. Forex traders who choose to focus on a single currency pair are referred to as “pair traders”. Forex pairs are typically grouped into three categories – majors, minors and exotics. Major pairs are those that are the most heavily traded and account for the majority of Forex trading volume.
The USD/EUR pair is the most traded Forex currency pair and accounts for approximately 28% of Forex trading volume. This pair is also known as “the Euro” or “the Greenback”. The GBP/USD pair is the second most traded Forex currency pair and accounts for around 14% of Forex trading volume. This pair is known as “Cable” or “The Pound”. The AUD/USD, USD/JPY, USD/CHF, NZD/USD and CAD/USD pairs are also major Forex currency pairs and make up the remaining Forex trading volume.
What Pairs Are Forex Brokers in Ireland Offering?
Forex brokers in Ireland typically offer a wide range of Forex currency pairs, including all the major Forex pairs as well as minor and exotic Forex pairs. However, each Forex broker will have different offerings, so it is important to compare Forex brokers before making a decision about which one to use. Forex brokers in Ireland offer Forex trading on margin, which means they provide leverage to Forex traders and allow them to trade larger amounts of money with less capital. Forex brokers may also offer additional services such as trading signals and educational materials to help Forex traders improve their trading strategies.
For Forex traders in Ireland, understanding the importance of the major Forex currency pairs is essential to successful Forex trading. A reputable Forex broker in Ireland can offer a variety of Forex products and services that will help Forex traders understand these currency pairs, as well as offer Forex trading strategies and advice to maximize Forex profits.
The Forex market is a complex and ever-changing environment, and Forex traders must be able to understand the importance of the major Forex currency pairs in order to succeed. Forex brokers in Ireland can provide Forex traders with a range of Forex products and services that will help them make informed trading decisions. Understanding the importance of these Forex currency pairs is essential for Forex traders to maximize their Forex profits.