Need a List of Circulating Currencies?
A list of circulating currencies is by no means necessary if you want to trade in the foreign exchange market.
Your online Forex trading system should give you the Forex quote for currencies of countries you wish to trade.
A list can be handy though, for when you want to quick-glimpse the ISO code, when you wish to purchase foreign currency or make a Forex currency trade.
Having a list of circulating currencies can be very handy as a professional Forex trader. Being able to access a list of circulating currencies can help you in a number of situations. Here are a few things to consider about the circulating currencies and what you should know about them.
There are 182 different currencies that are currently in circulation.
This provides you with several options to trade and speculate on. However, just because a particular currency is in circulation does not necessarily mean that you should engage in trading it. In fact, there are a number of circulating currencies that should be avoided at all costs when it comes to trading the market.
Professional Forex traders typically stick to the major currency pairs. They are:
US Dollar vs Canadian Dollar (USD/CAD)
US Dollar vs Swiss Franc (USD/CHF)
British Pound vs US Dollar (GBP/USD)
US Dollar vs Japanese Yen (USD/JPY)
Australian Dollar vs US Dollar (AUD/USD)
Euro vs US Dollar (EUR/USD)
There are a few currency pairs that are traded much more than all of the other currency pairs in the world combined. For example, the United States dollar is traded in over 90% of foreign exchange transactions in the world today. This means that when trading the dollar, you will be able to take advantage of fantastic volume and availability.
One of the problems with trading currencies that are not considered to be major currency pairs is that most of them are very volatile. Since there is not a big market for these currencies, even the slightest trading action could change the market.
For example, if you were to scalp a pair that does not have great much volume, it could significantly change the value of that pair in the market. With large currency pairs, an individual trader making trades would never have any impact on the price of the pair. With most large currencies, it would take many institutional investors trading at the exact same time to have any impact on the price of the currency. This means that it is much safer for individual investors and allows you to use technical indicators with some level of certainty.
When you are trading, it is best to stick to the majors and adopt an hourly position. This means that you should check back on your positions once an hour. You should use a one-hour chart for the majority of your charting needs.
Many people use shorter time frames and continually scalp the market. The problem with this approach is that it often leads traders to make bad trading decisions and look at indications in the market that are not applicable on such short time frames.
Overall, there are many circulating currencies that you could potentially trade as a professional Forex trader. However, just because you have the ability to, that does not mean that you should take advantage of this opportunity. Stick to the basics and try not to get too fancy. There is plenty of money to be made with the major currency pairs and you do not need to deviate outside of these pairs to be profitable.
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