If you’ve ever wondered what exactly you can trade on the Forex market, you’re about to find out. This article provides you with a comprehensive overview of what you can expect to trade in the world of foreign exchange. From currency pairs to commodities, we’ll explore the various options available to you and help you navigate the exciting and potentially profitable world of Forex trading. So, if you’re ready to learn more about what you can trade on Forex, keep reading!
Major Currency Pairs
When it comes to trading on the forex market, major currency pairs are a popular choice for many traders. These currency pairs involve the most widely traded and influential economies in the world. Here are a few major currency pairs that you should consider:
EUR/USD
The EUR/USD currency pair is one of the most widely traded pairs in the forex market. It involves the euro, which is the currency of the European Union, and the US dollar. This pair is influenced by a multitude of factors, including economic data, political events, and central bank decisions. The EUR/USD often experiences high liquidity, making it a favorite among many traders.
GBP/USD
The GBP/USD currency pair involves the British pound and the US dollar. Known as “cable” in the forex market, this pair is influenced by economic data from both the United Kingdom and the United States, as well as geopolitical events. The GBP/USD is known for its volatility, making it an attractive choice for traders looking to take advantage of price fluctuations.
USD/JPY
The USD/JPY currency pair involves the US dollar and the Japanese yen. Known as the “Gopher” in the forex market, this pair is influenced by economic data from both countries, as well as monetary policy decisions made by the Bank of Japan and the Federal Reserve. The USD/JPY is often considered a barometer for global economic health, reflecting risk sentiment in the market.
USD/CHF
The USD/CHF currency pair involves the US dollar and the Swiss franc. This pair is often referred to as the “Swissie” in the forex market. The USD/CHF is influenced by economic data from both countries, as well as political events and market sentiment. The Swiss franc is often considered a safe haven currency, meaning it tends to strengthen during times of market uncertainty.
AUD/USD
The AUD/USD currency pair involves the Australian dollar and the US dollar. This pair is influenced by economic data from Australia, such as employment figures and interest rate decisions, as well as factors affecting the US dollar. The AUD/USD is often influenced by commodity prices, as Australia is a major exporter of commodities such as iron ore and coal.
USD/CAD
The USD/CAD currency pair involves the US dollar and the Canadian dollar. Known as the “Loonie” in the forex market, this pair is influenced by economic data from both countries, as well as oil prices and market sentiment. Canada is a major exporter of oil, making the USD/CAD highly sensitive to changes in the commodity’s price.
Cross Currency Pairs
In addition to major currency pairs, cross currency pairs are also commonly traded in the forex market. These currency pairs do not involve the US dollar, acting as intermediaries between two major currencies. Here are a few examples of cross currency pairs:
EUR/GBP
The EUR/GBP currency pair involves the euro and the British pound. This pair reflects the relative strength of the euro against the pound, without the influence of the US dollar. Traders who have a strong opinion on the performance of these two currencies can take advantage of trading opportunities within the EUR/GBP.
EUR/JPY
The EUR/JPY currency pair involves the euro and the Japanese yen. This pair represents the value of the euro in yen terms. Traders who are interested in trading the euro against the yen, without the influence of the US dollar, can consider the EUR/JPY.
GBP/JPY
The GBP/JPY currency pair involves the British pound and the Japanese yen. This pair represents the value of the pound in yen terms. Traders who have a specific interest in trading the pound against the yen, without the influence of the US dollar, can explore opportunities within the GBP/JPY.
AUD/NZD
The AUD/NZD currency pair involves the Australian dollar and the New Zealand dollar. This pair represents the relative strength of these two neighboring countries’ currencies. Traders who have insights on the economic performance of Australia and New Zealand can consider trading the AUD/NZD.
CAD/JPY
The CAD/JPY currency pair involves the Canadian dollar and the Japanese yen. This pair represents the value of the Canadian dollar in yen terms. Traders who want to trade the Canadian dollar against the yen can explore the CAD/JPY.
Exotic Currency Pairs
Exotic currency pairs are less frequently traded compared to major and cross currency pairs. They involve currencies from emerging or smaller economies, and their liquidity can be lower than that of major pairs. Traders with a higher risk tolerance and specialized knowledge of these currency pairs may find trading opportunities in this category. Some examples of exotic currency pairs include:
USD/ZAR
The USD/ZAR currency pair involves the US dollar and the South African rand. This pair reflects the value of the US dollar in South African rand terms. Traders who are interested in trading the US dollar against the South African rand can consider the USD/ZAR.
USD/TRY
The USD/TRY currency pair involves the US dollar and the Turkish lira. This pair represents the value of the US dollar in Turkish lira terms. Traders who have insights on the economic and political developments in Turkey can consider the USD/TRY.
EUR/TRY
The EUR/TRY currency pair involves the euro and the Turkish lira. This pair represents the value of the euro in Turkish lira terms. Traders who have a specific interest in trading the euro against the Turkish lira can consider the EUR/TRY.
EUR/RUB
The EUR/RUB currency pair involves the euro and the Russian ruble. This pair represents the value of the euro in Russian ruble terms. Traders who want to trade the euro against the Russian ruble can explore opportunities within the EUR/RUB.
USD/THB
The USD/THB currency pair involves the US dollar and the Thai baht. This pair reflects the value of the US dollar in Thai baht terms. Traders who have insights on the economic and political developments in Thailand can consider the USD/THB.
Commodity Currency Pairs
Commodity currency pairs are closely tied to the performance of commodity prices. These currency pairs involve economies that heavily rely on commodity exports. Traders interested in commodity markets and their impact on currencies may find these pairs appealing. Here are a few examples of commodity currency pairs:
AUD/USD
The AUD/USD currency pair was previously discussed in the major currency pairs section. It involves the Australian dollar and the US dollar. Traders who want to trade the Australian dollar against the US dollar can consider the AUD/USD.
USD/CAD
The USD/CAD currency pair was also previously discussed in the major currency pairs section. It involves the US dollar and the Canadian dollar, with Canada being a major exporter of oil. Traders who want to trade the US dollar against the Canadian dollar, with a focus on the impact of oil prices, can explore opportunities within the USD/CAD.
NZD/USD
The NZD/USD currency pair involves the New Zealand dollar and the US dollar. This pair represents the value of the New Zealand dollar in US dollar terms. Traders who are interested in trading the New Zealand dollar against the US dollar can consider the NZD/USD.
USD/BRL
The USD/BRL currency pair involves the US dollar and the Brazilian real. This pair reflects the value of the US dollar in Brazilian real terms. Traders who have insights on the economic and political developments in Brazil can consider the USD/BRL.
CAD/JPY
The CAD/JPY currency pair was previously discussed in the cross currency pairs section. It involves the Canadian dollar and the Japanese yen, with Canada being a major exporter of oil. Traders who want to trade the Canadian dollar against the Japanese yen, with a focus on the impact of oil prices, can explore opportunities within the CAD/JPY.
Stay tuned for the continuation of this article.
