The fastest-growing broker, RightFX, explains everything that you need to know about currency pairs
You might have read "currency pairs" wherever you saw forex trading. EUR/USD, USD/JPY, GBP/USD, etc., are the letters that you might have come across, right? Aren’t you keen on knowing what these mean and how they work?
FollowWell, RightFX will tell you everything that you need to know about currency pairs. Founded by Ravirajsinh Vaghela in 2015, the company RightFX has been steering people about forex trading since it wasn’t even in trend. By providing outstanding services, they have not only emerged as one of the thriving forex brokers but have also helped many people to achieve their trading goals.
So, what is a currency pair according to RightFX?
The company explains that every transaction that occurs in the forex market involves the simultaneous buying and selling of two currencies called "currency pairs." The first currency is called "base currency" and the second is termed "quote currency."
RightFX describes the base currency as the first currency that stands in forex currency pairs. This currency is bought or sold in exchange for a quote currency (the second currency).
RightFX underlines further details about forex currency pairs:
Major Currency Pairs: According to RightFX, these pairs are the most widely and commonly traded. They account for nearly 80% of trade volume on the forex market and the liquidity of each pair may vary. RightFX asserts that these currency pairs are stable, well-managed economies and have smaller spreads than other pairs.
EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, and NZD/USD are the seven major currency pairs.
Cross Currency Pairs: This pair doesn’t include USD. Crosses were first converted into USD and then into the desired currency. However, now they can be offered for direct exchange. The most typically traded cross currency pairs are derived from minor currency pairs.
EUR/GBP, EUR/JPY, GBP/JPY, NZD/JPY, CAD/CHF, AUD/JPY are all examples of currency pairs.
Exotic Currency Pairs: These are the currencies of emerging or smaller economies. RightFX states that exotics are much riskier as they have low liquidity, are more volatile and are vulnerable to manipulation.
The six exotic pairs are USD/MXN, GBP/NOK, GBP/DKK, CHF/NOK, EUR/TRY, USD/TRY.
We are confident that RightFX might have told you enough about forex currency pairs. However, if you are searching for more, you can check their official website. RightFX is a great hub for forex education.
The company can also be your best pick when it comes to choosing a forex broker. RightFX has excellent quality services, which makes him even more trustworthy. So if you're thinking of stepping into the world of forex trading, RightFX is indeed your right partner!
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