Currencies Traded in the Forex Market | BR Trading
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Currencies Traded in the Forex Market

All the world’s currencies are traded in the forex market and are divided into two categories:

  • Major Currencies

  • Minor Currencies

1. Major Currencies

These are the strongest and most heavily traded currencies in the world. There are five major currencies as follows:

  • USD – US Dollar

  • EUR – Euro

  • GBP – British Pound

  • JPY – Japanese Yen

  • CHF – Swiss Franc

2. Minor Currencies

The most well-known minor currencies are:

  • CAD – Canadian Dollar

  • AUD – Australian Dollar

  • NZD – New Zealand Dollar

As forex traders, these eight currencies are what matter most to us, as they are the most actively traded in the market. This is why they are often referred to as the major currencies in Forex.


How are currency abbreviations determined?

The International Organization for Standardization (ISO) has established a system for naming currency abbreviations. Each currency is represented by a three-letter code, where usually:

  • The first two letters represent the country name,

  • The third letter represents the currency name.

Some exceptions exist.

For example:

  • USD: United States Dollar

  • CHF: Derived from the Latin name for Switzerland — Confoederatio Helvetica Franc

  • SAR: Saudi Arabia Riyal

Why is the US Dollar considered the strongest currency?

The US Dollar gained its leading role after World War II through the Bretton Woods Agreement, where other currencies were pegged to the USD. Today, the dollar is considered the main reserve currency for central banks around the world. It is also the pricing benchmark for most commodities such as gold, oil, silver, etc.

Thus, the US Dollar is undisputedly the king of global currencies.

Key Takeaway for Forex Traders

Dealing with major currencies or their pairs is one of the key features of the Forex market. Around 90% of forex trading volume is concentrated in the major currencies:

USD, GBP, EUR, JPY, CHF, CAD, AUD, NZD

Following these currencies closely opens up many profitable trading opportunities.

Their dominance in the market has naturally increased the interest and attention of traders and investors toward major currency pairs in Forex.

According to the latest statistics from the Bank for International Settlements (BIS) for 2022, the table below shows the trading volumes of the most popular currency pairs in the forex market.

📘 Stay tuned for the next lesson to learn more about the Forex Market.