Foreign Exchange (Forex) Markets

These dynamic global marketplaces facilitate the trading of international currencies, serving as the foundation for worldwide commerce and investment.

When you participate in the forex market, you're essentially exchanging one currency for another based on their relative values, which fluctuate constantly due to economic indicators, central bank policies, geopolitical events, and market sentiment.

€/$

EUR/USD

Euro/US Dollar

$/¥

USD/JPY

US Dollar/Japanese Yen

£/$

GBP/USD

British Pound/US Dollar

$/Fr

USD/CHF

US Dollar/Swiss Franc

€/$

EUR/USD (Euro/US Dollar)

The most traded currency pair in the world, accounting for approximately 28% of daily forex trading volume.

Average Spread The difference between the buy (ask) and sell (bid) price, measured in pips.

0.1-0.7 pips

Volatility

Moderate

Daily Volume (2023)

~$1.5 trillion

Key Influences

ECB policy, Fed policy, Eurozone economics

Notable Characteristics

Most traded pair, highest liquidity

Trading Hours

24 hours, 5 days a week

Did you know? The EUR/USD pair is often called "Fiber" by professional traders, a nickname that originated after the introduction of the euro in 1999.

$/¥

USD/JPY (US Dollar/Japanese Yen)

The second most traded currency pair, representing major economies and known for its strong correlation with US Treasury yields.

Average Spread The difference between the buy (ask) and sell (bid) price, measured in pips.

0.2-0.9 pips

Volatility

Moderate

Daily Volume (2023)

~$1.1 trillion

Key Influences

Fed policy, BOJ policy, risk sentiment

Notable Characteristics

Safe-haven currency in times of market stress

Trading Hours

24 hours, 5 days a week

Did you know? The USD/JPY pair is nicknamed "Ninja" in trading circles, referencing its Japanese connection and sometimes unpredictable movements.

£/$

GBP/USD (British Pound/US Dollar)

Known as "Cable" due to the transatlantic cable that once connected bid/ask quotes between London and New York.

Average Spread The difference between the buy (ask) and sell (bid) price, measured in pips.

0.5-1.2 pips

Volatility

High

Daily Volume (2023)

~$630 billion

Key Influences

BOE policy, Fed policy, UK economic data

Notable Characteristics

"Cable," known for sharp movements

Trading Hours

24 hours, 5 days a week

Did you know? GBP/USD is one of the oldest currency pairs in the world, with trading history dating back to the 1800s, well before electronic forex trading.

$/Fr

USD/CHF (US Dollar/Swiss Franc)

Often called "Swissy," this pair is known for its stability and the Swiss franc's traditional role as a safe-haven currency.

Average Spread The difference between the buy (ask) and sell (bid) price, measured in pips.

0.3-1.0 pips

Volatility

Low to moderate

Daily Volume (2023)

~$440 billion

Key Influences

Fed policy, SNB policy, risk-off flows

Notable Characteristics

Traditional safe-haven asset during crises

Trading Hours

24 hours, 5 days a week

Did you know? The Swiss Franc is considered one of the most stable currencies in the world, earning it the nickname "Swissy" among traders.

Key Forex Facts

  • 24-Hour Market: The forex market operates 24 hours a day, five days a week, enabling traders to react to events as they happen.
  • Decentralized: Unlike stock exchanges, forex trading occurs over-the-counter (OTC) with no central exchange or clearing house.
  • Major Trading Centers: London, New York, Tokyo, and Singapore are the world's largest forex trading hubs.
  • Leverage: Forex trading typically offers higher leverage than other markets, allowing traders to control large positions with relatively small amounts of capital.

Click on a currency pair above to view detailed information