As we all know, foreign exchange trades for five days a week and 24 hours a day. Within this market, traders can have the chance to have highly leveraged trading accompanied by lower margin requirements.
But, before you go directly into the market, you need to know the 6 most tradable currency pairs.
EUR/USD
This is the most traded currency in the market. These currency pairs have the tendency to have a negative correlation with USD/CHF. On the other hand, it tends to have a positive correlation with GBP/USD.
That happens due to the positive correlation toward the euro, the British pound, and the Swiss franc.
USD/JPY
Traditionally, USD/JPY is the most actively traded pair. Besides, this pair has also been extremely sensitive toward the United States and the Far East Sentiment.
This pair has the tendency to have a positive correlation toward USD/CHF and USD/CAD. That is because the U.S. is the base currency of those three pairs.
GBP/USD
GBP/USD pair tends to negatively correlated with USD/CHF. While it is positively correlated to EUR/USD. That comes from the, relatively, positive correlation among three currencies British pound, the Swiss franc, and the euro.
USD/CAD
USD/Cad pair tends to have a negative correlation with various pairs. They are AUD/USD, GBP/USD, and EUR/USD pairs. That is because the U.S. dollar becomes the quote currency on those three pairs.
USD/CHF
This pair has the tendency to have a negative correlation with the EUR/USD and GBP/USD pairs. That comes as the consequence of the positive correlation among the Swiss franc, the British pound, and the euro,
Many forex traders have long considered franc as one of the safe havens in times of political unrest.
AUD/USD
The last pair from the 6 most tradable currency pairs is AUD/USD. This pair has the tendency to be negatively correlated with the USD/CAD, USD/CHF, and USD/JPY. That happens due to the U.S. dollar becomes the quote currency.
