The main reason for this volume is that many private and individual investors have entered this market, making it one of the largest markets in the world. More and more investors are entering the forex market every day.

There are six senior trading currencies on the forex market:

  • The US dollar (USD) - The US dollar, backed by the powerful US economy, is the most dominating of the major currencies and is a counterpart currency for the other major and minor currencies being traded in the global Forex markets. In general, all the currencies are quoted in US dollar terms and it would be present in about 86% of  foreign exchange market transactions. Most of the commodities, as well as the big stocks of the fast-moving consumer goods, are traded in the form of US dollar, for example, metals, oils, etc that's why the US dollar is considered as the safe-haven currency.
  • The Euro (EUR) - Euro is the second most dominating currency in the forex trade market after the US dollar. It has a strong universal acceptance being the single currency of the European monetary union. As the Euro is used by all the members of the European Union, it currently accounts for almost 37% of  Forex exchange trade.
  • Japanese Yen (JPY) - The yen is the most traded and major currency in the Asian foreign exchange trade market. It is the third most important currency in  foreign exchange trade and is regarded as a safe haven for  traders in times of crisis.
  • The British Pound (GBP) - The pound is the UK'S currency and is heavily traded against the Euro and the US Dollar, but it has fewer exchanges between other foreign currencies.
  • The Swiss Franc (CHF) - The swiss franc is Switzerland's currency. It is also regarded as a safe place for investors in  times of risk aversion.
  • The Canadian Dollar (CAD) - It is a commodity-driven currency because the Canadian economy is export-oriented, the main export being crude oil. The global economic growth and technological progress make  the CAD attractive to investors

How to trade well in the forex market?

  • To trade profitably in the foreign exchange markets, any potential trader has to understand the basics of the markets and their behavior before trading. Research and education about the forex market and the currency pairs you intend to trade, is very important and will save you money before trading with your own money. Any beginner must devote time to research about the markets and the economics that affect the currencies you intend to trade in, before risking their capital. Time spent on education, research and model trading, not in real time and with no loss potential, will save any new trader from substantial losses, when trading live, without adequate preparation.
  • Any trader needs to create a trading plan before investing in their chosen currencies and trade in a disciplined fashion, thinking critically about the investment. They have to focus on profit, goals, risk tolerance capacity, relevant economic news that may impact on the trades you have put on and evaluation of their trading strategies.
  • A trader should always check their plan and abilities in real market conditions, using a risk-free forex account. There are platforms that let you practice forex trading without risking your capital. These simulators help a new trader to experience the market thoroughly. However, you will find the real market a little different from the simulated one.
  • Expert traders always keep themselves up to date with current political and financial news which can affect the forex market. This can be easily accessed through newspapers, the internet, magazines, etc. However, you need to understand the effect that any major news story, political, or economic may have on the markets you are choosing to trade in.
  • Traders also rely on their fundamental analysis of GDP growth, industrial production, interest rates, consumer price index, retail sales, etc.
  • Technical analysis of the market is also important. The analysis includes market trends, which are classified into three segments.
  • Uptrends, downtrends, flat trends.
  • Traders also add to the mix, sentimental analysis, which is based on their own opinions, experience and gut feelings about a certain currency.
  • A trader has to know their limits, how much risk they can afford, trade by trade and how Risk management is a big factor in any field of investment. You need to set realistic profit and loss limits every time you trade. If you are new to trading, be cautious and be consistent in the manner in which you trade, so your losses when they come, will not be too damaging to your overall capital.
  • Research the market as much as you can, because it will increase your vision of the markets. Good quality research and analytics is the key to profit in forex trading.


Foreign Exchange is a very diversified market. There are a lot more opportunities than you can imagine. Once you come up with a system of analysis, investment plan and a strategy for risk management, you will be able to make it your full-time career. You  need to be consistent, learn as much as you can about the factors that affect the value of each currency and trade accordingly.