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Which Currencies Can I Trade on the Forex Market?

Which Currencies Can I Trade on the Forex Market?

Which Currencies Can I Trade on the Forex Market?

The Forex market, with its staggering average daily turnover of $7.5 trillion, stands as the world’s largest financial market. It presents traders with a dynamic and exciting arena to capitalize on currency movements. Thus, in this blog post, we will delve into the world of Forex trading, exploring the range of currencies available and how to engage in it with Xtreamforex.

Understanding Forex Trading Basics

At its core, Forex trading involves speculating on the price fluctuations of different currency pairs. Consequently, traders commonly purchase a currency pair with the expectation that the base currency (the first currency in the pair) will increase in value relative to the quote currency (the second currency in the pair) or vice versa. The primary objective is to profit from the price differential between these two currencies.

Exploring Tradable Currencies

The Forex market opens the door for traders to access a vast array of currencies from around the world. Among the most popular currencies for trading are:

  1. US Dollar (USD)

The USD takes its throne as the world’s most traded currency, participating in approximately 88% of all Forex transactions. Moreover, its widespread adoption as a reserve currency by various nations contributes to its high liquidity and stability, making it an attractive choice for traders.

  1. Euro (EUR)

Occupying the position of the second most traded currency globally, the EUR participates in around 32% of all Forex transactions. Furthermore, it serves as the official currency of the European Union as well as enjoys broad acceptance throughout Europe.

  1. Japanese Yen (JPY)

As the third most traded currency globally, the JPY is part of roughly 16% of all Forex transactions. It often serves as a safe-haven currency during times of economic uncertainty.

  1. British Pound (GBP)

Moving on to the GBP, it secures its position as the fourth most traded currency in the world, participating in approximately 13% of all Forex transactions. Interestingly, it serves as the official currency of the United Kingdom and enjoys wide usage in Europe. Additionally, the GBP is known for its high liquidity, making it a popular choice among traders looking for trading opportunities with low spreads.

  1. Swiss Franc (CHF)

The CHF holds the fifth position in global Forex trading and, as a result, participates in about 6% of all transactions. Furthermore, Switzerland’s political neutrality and stable economy make the CHF a preferred safe-haven currency.

  1. Australian Dollar (AUD)

As the sixth most traded currency globally, the AUD, indeed, plays a role in approximately 6% of all Forex transactions. Moreover, it is frequently utilized as a proxy for trading commodity currencies, such as the CAD and NZD.

  1. Canadian Dollar (CAD)

The CAD, on the other hand, holds the seventh position in global Forex trading, taking part in approximately 5% of all transactions. Consequently, it is often employed as a proxy for trading commodity currencies, much like the AUD and NZD.

  1. New Zealand Dollar (NZD)

Similarly, the NZD ranks as the eighth most traded currency on a global scale, making up about 3% of all Forex transactions. In line with the AUD and CAD, it functions as a proxy for trading commodity currencies.

  1. Chinese Yuan (CNY)

As the ninth most traded currency in the world, the CNY is part of approximately 2% of all Forex transactions. Its popularity is on the rise due to China’s expanding economy and increased foreign investment.

  1. Hong Kong Dollar (HKD)

Holding the tenth position in global Forex trading, the HKD is involved in about 1% of all transactions. People often use it as a proxy for trading the CNY.

Trading with Xtreamforex

Having delved into the range of available currencies for trading, it’s time to shift our focus towards understanding how to actively participate in Forex trading through Xtreamforex. Notably, Xtreamforex stands as a prominent Forex broker renowned for providing traders with access to a diverse selection of currency pairs, as well as an array of other financial instruments, including stocks, commodities, and indices.

To commence your journey with Xtreamforex:

  1. Begin by creating an account on the Xtreamforex website. 
  2. After account creation, make a deposit to fund your trading activities.
  3. Once your account has funds, access Xtreamforex’s trading platform.
  4. Choose your preferred currency pairs and start placing trades.

Xtreamforex distinguishes itself by offering competitive spreads, ensuring rapid execution speeds, and providing a diverse range of educational resources. As a result, traders can benefit from these resources, which are designed to assist them in enhancing their skills and ultimately optimizing their profits.

Final Thoughts 

The Forex market offers traders an extensive selection of currencies from around the world. By understanding which currencies are accessible and how to engage in trading with a broker such as Xtreamforex, traders can open the door to a realm of boundless opportunities for profit and success.