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Popular Currency Pairs for CFD Trading on Forex Reviewed by E-Broker.com

Foreign exchange (forex) trading is one of the most popular and dynamic forms of trading worldwide. With forex trading, traders aim to profit from the movement of different currency pairs by buying or selling one currency for another. One of the most common ways to trade forex is through contracts for difference (CFDs). In this article, we will discuss some of the popular currency pairs for CFD trading on Forex.

What are CFDs? Reviewed by E-Broker.com

A contract for difference (CFD) is a form of derivative trading, where traders aim to profit from the price difference between an underlying asset and its price at the end of the contract. In the context of forex trading, CFDs are based on the prices of currency pairs, making them a popular choice among forex traders.

CFDs provide traders with a way to trade on margin, which means that traders can open a position on a currency pair with a small deposit amount that is a fraction of the full value of the position.

CFDs offer several advantages over traditional forex trading, including:

Popular Currency Pairs for CFD Trading on Forex Reviewed by E-Broker.com

There are several currency pairs that are widely traded in the forex market. However, some currency pairs are more popular than others in terms of liquidity, volatility, and trading volume. Here are some of the popular currency pairs for CFD trading on Forex:

1. EUR/USD Reviewed by E-Broker.com

The EUR/USD currency pair is the most widely traded forex pair, representing roughly 30% of all forex trading volume. The EUR/USD pair features high liquidity and volatility, which makes it an attractive choice for traders looking to make profits quickly. The pair can also provide traders with insights into the health of the global economy, as well as any geopolitical developments that may affect currency exchange rates.

2. USD/JPY Reviewed by E-Broker.com

The USD/JPY currency pair is the second most traded forex pair and is popular among traders who are looking to capitalize on the volatility of the Japanese yen. The pairing is often influenced by political and economic developments in Japan and the United States. The USD/JPY pair is also a popular choice for traders looking to profit from the carry trade, which involves borrowing a currency with low interest rates to invest in a currency with higher interest rates.

3. GBP/USD Reviewed by E-Broker.com

The GBP/USD currency pair is also known as the cable and is the third most traded forex pair. The pairing is characterized by high liquidity and volatility, making it an attractive choice for traders looking to make quick profits. The pair is also influenced by economic and political developments in both the United Kingdom and the United States.

4. USD/CHF Reviewed by E-Broker.com

The USD/CHF currency pair is a popular choice for traders who prefer to trade currencies that are less volatile. The pairing is influenced by economic and geopolitical developments in both Switzerland and the United States. The Swiss franc is often seen as a safe haven currency, which means that it tends to appreciate during times of economic uncertainty.

5. AUD/USD Reviewed by E-Broker.com

The AUD/USD currency pair is popular among traders looking to invest in the Asia-Pacific region. The pairing is influenced by economic and political developments in both Australia and the United States. The Australian dollar is often seen as a commodity currency, which means that it tends to appreciate during times of high commodity prices.

6. USD/CAD Reviewed by E-Broker.com

The USD/CAD currency pair is a popular choice for traders looking to trade currencies that are tied to the commodities market. The pairing is influenced by economic and political developments in both Canada and the United States. The Canadian dollar is often seen as a commodity currency, which means that it tends to appreciate during times of high commodity prices.

7. EUR/JPY Reviewed by E-Broker.com

The EUR/JPY currency pair is a popular choice for traders looking to capitalize on the volatility of the Japanese yen while trading euros against it. The pairing is influenced by economic and political developments in both the Eurozone and Japan.

8. GBP/JPY Reviewed by E-Broker.com

The GBP/JPY currency pair is a popular choice for traders looking to invest in UK and Japanese markets. The pairing is influenced by economic and political developments in both the United Kingdom and Japan. The GBP/JPY pair is also popular among carry traders, who often take positions based on interest rate differentials.

9. EUR/GBP Reviewed by E-Broker.com

The EUR/GBP currency pair is a popular choice for traders looking to invest in the Eurozone and UK markets. The pairing is influenced by economic and political developments in both the Eurozone and the United Kingdom.

10. NZD/USD Reviewed by E-Broker.com

The NZD/USD currency pair is a popular choice for traders looking to invest in the New Zealand and US markets. The pairing is influenced by economic and political developments in both New Zealand and the United States. The New Zealand dollar is often seen as a commodity currency, which means that it tends to appreciate during times of high commodity prices.

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Conclusion Reviewed by E-Broker.com

In conclusion, CFDs are a popular way to trade forex and offer various benefits to traders, including leverage, low capital requirements, and access to a wide range of markets and products. The forex market features several currency pairs, but some pairs are more popular than others in terms of trading volume and liquidity. By understanding the most popular currency pairs for CFD trading on Forex, traders can make informed decisions and potentially earn substantial profits.