- The five most traded currencies on Forex are listed below, with reasons for their popularity:
- * American dollar:
- * Euro:
- *Japanese yen:
- * Pound sterling:
- * Australian dollar:
- Good luck!
- Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I’ll be happy
Today we will discuss the five most popular coins.
Currently, there are 180 coins in active circulation in the world. Most of the transactions that take place in the foreign exchange market are made using only about half a dozen of these currencies. If you are familiar with the Pareto principle, then it applies very well in the real world. This article will provide you with an overview of the currencies that are currently dominate the foreign exchange market.
The five most traded currencies on Forex are listed below, with reasons for their popularity:
* American dollar:
The dominance of the US dollar as a currency is undeniable. In truth, this coin has no serious competition. Such popularity is due to the long-term stability of the government and the economic dynamism of the United States. It has a very stable value because it is not greatly affected by inflation over a long period of time. Many foreign governments literally cling to dollars as a reserve currency, mainly because that currency is used for international transactions. It goes without saying that the US dollar is on a pedestal and its status as a currency is unparalleled, or rather, not yet.
The US dollar as the main currency definitely needs a second currency. Surprisingly, this currency is one of the youngest and is considered the official currency from Finland to Portugal and from Slovakia to Slovenia. The euro it is the next most traded currency among all currencies in the world. Currently, there are about 500 million people in Africa and Europe who use this currency to trade. It is likely that the value of euro increase over time.
The Japanese yen has become so important today because its value has tripled. Because of this, Japanese companies have taken the opportunity to acquire various acquisition-related positions from many institutions in the United States. Through these developments, the yen has gradually become one of the most important currencies used in the foreign exchange market.
* Pound sterling:
The British pound has lost some of its glory. Decades ago, it was the second most widely used currency, but with the fall of the British Empire and the rise of the euro , the pound was forgotten. Today the pound is used in only 6% of all foreign exchange transactions. If you’re wondering why the pound suddenly fell to number four, the best answer is that it’s in a relative vacuum. The UK government has fixed its price against the dollar, and this is not a good thing, because it no longer reflects the real value of the currency.
* Australian dollar:
This currency was created in 1966 as a replacement for the now obsolete Australian pound. Since then, it has become one of the most popular reserve currencies circulating in Oceania and the Asia-Pacific region. Little by little, it has become one of the preferred currencies for trading.
In the 21st century, currencies are moving towards diversity. Investors pay attention to the stability and volatility of the currency. In addition, the reputation of the economy and the security of the state matter in the selection process. Finally, another factor that is taken into account is the degree of use of the currency.
Due to the high volatility, trading these pairs is faster, which can help you win a lot or lose everything quickly.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I’ll be happy