What Are the Most Traded Currencies in the World?
Monday, June 26, 2017, 6:00 AM | Leave Comment
The Foreign Exchange market, also known as the “Forex market”, enables traders to buy and sell positions on a wide range of currency pairs.
The UFX currency trading platform gives you the chance to profit from the appreciation or depreciation of one currency against another.
The platform offers trading opportunities on major currencies like the Euro (EUR), U.S. Dollar (USD), and Japanese Yen (JPY), minor currencies such as the Danish Krone (DKK), Norwegian Krone (NOK), and Swedish Krona (SEK), and exotic currencies including the Hong Kong Dollar (HKD), Mexican Peso (MXN), and the Singapore Dollar(SGD).
The Forex market is one of the largest and most liquid in the world, with a total daily average trading volume of approximately$5 billion.
The number of traders participating in the FX market is constantly growing because it operates 24 hours a day, from Sunday to Friday evening.
To maximise their chances of earning the biggest profits, smart traders monitor the values of the most popular currencies around the clock.
The Most Popular Currencies in Forex Trading
The Triennial Central Bank Survey of foreign exchange turnover, published in September 2016,showed that the 3 most traded currencies in the world are the U.S. Dollar (87.6% of the daily average), the Euro (31.3%), and the Japanese Yen(21.6%).
-
The U.S. Dollar
As the global reserve currency, the U.S. Dollar is traded against all other major currencies.
It also acts as an intermediary in “triangular currency transactions,” and almost every central bank and financial institution in the world holds reserves of the greenback, as it is often called.
The U.S. Dollar is accepted globally and has even been adopted as the official currency in several other countries, a process known as “dollarization.”
-
The Euro
The Euro is the official currency of 19 countries within the European Union. It was introduced on January 1st, 1999, with banknotes and coins entering circulation a few years later.
A total of 22 countries outside the Eurozone peg their currencies to the Euro to stabilize their exchange rates. It is currently the 2ndmost traded currency in the global market.
-
The Japanese Yen
The Yen is the official currency of Japan and is the 3rdmost traded currency in the foreign exchange market.
As well as being the most liquid currency in Asia, the Yen also acts as a safe haven for traders during times of high volatility and uncertainty.
This currency is considered a proxy for the underlying strength of Japan’s manufacturing/export economy and is used to gauge the overall health of the Pan-Pacific region.
Brokers like UFX provide traders with the opportunity to trade these popular currencies against each other, using tools and resources that are constantly monitored and updated.
Throw us a like at Facebook.com/doable.finance
