The Most Commonly Traded Currencies in Forex
If you’re already involved with the Forex trading market, you know this is basically the buying and selling of international monies to make a profit. Trading is always done in pairs – one currency for the other – and you make higher turnover profit by reselling the currency you’ve purchased once it’s value increases further, similar to buying and selling stock.
There are an endless number of people – individuals as well as entire corporations – throughout all of the cities, countries and continents of the world that trade through the Forex marketplace. However, as in any type of venue there are those ‘the major players’ who most commonly trade their international currencies more than others.
The current list of the most frequently traded currencies with applicable acronyms and accompanying trading pair currency include the:
• Australian Dollar – AUD/USD
• British Pound – GPB/USD
• Canadian Dollar – CAD/USD
• Swiss Franc – USD/CHF
• Euro Dollar – EUR/USD
• Japanese Yen – JPY/USD
Regarding this list, the acronyms are shown relating to its specific country first, then its trading pair partner. But actually, in the case of the Canadian Dollar and Japanese Yen, the trade is actually reversed as those countries’ currencies are more valuable when priced against the US dollar. So in those instances, the particular pairing in trade order would actually be USD/JPY and USD/CAD.
As a further point of information, you may also be interested in knowing which companies are ranked highest for the most Forex trade transactions. In order of ranking, these are:
1. Deutsche Bank – a globally-operated, multi-national bank located in Frankfurt Germany
2. USB – a financial services company with headquarters in Basel and Zurich, Switzerland
3. Citigroup – the world’s largest and most successful financial services firm based in New York City, USA
4. HSBC – one of the largest banking groups in world with it’s central office located in London, England
5. Barclays – the third largest bank in the United Kingdom, in business since 1690
6. Merrill Lynch – diversified banking and financial services group headquartered in NYC, USA
7. J P Morgan Chase – one of the world’s most influential financial services firms with headquarters in New York City, USA
8. Goldman Sachs – globally recognized as one of the most prestigious investment banking firms, founded in 1869 and headquartered in NYC, USA
9. ABM AMRO – one of Netherlands’ largest financial institutions, established in 1824
10. Morgan Stanley – long-standing, global financial services firm with headquarter offices in New York, City, USA
The top nine banks involved with Forex trading practices are:
1. Bank of America - USA
2. Credit Suisse - Switzerland
3. First Boston - USA
4. Goldman Sachs - USA
5. HSBC - England
6. J.P. Morgan - USA
7. Morgan Stanley – USA
8. (Dean Witter)- USA
9. UBS - Switzerland
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