What are the Most Traded Forex Parities ?

Trading in the Forex market is carried out thanks to forex parities. Currencies of countries, precious metals such as gold, platinum, silver in the Forex market; stocks and stock market indices; various investment instruments such as CFDs are traded. As individuals, institutions, and businesses, we aim to make investments and earn profits from these investments. Our investments are sometimes long-term and sometimes short-term. To profit from an investment, people need to make informed decisions. Trading in an unfamiliar market can result in serious losses. The most popular trading market of recent times is called Forex. With Forex trading, we can exchange currencies of different countries and realize these investments on the electronic platform. Forex (Foreign Exchange), the international financial market, is the largest and most liquid financial market in the world. 

In the Forex market, every investor can easily trade. Today, there are the most traded forex major parities all over the world. The fact that these major pairs make more profits and are used a lot by investors makes them trend. When trading in the Forex market, people must first choose an investment tool. Not every investment product is on every brokerage platform. Conducting extensive research for this situation also benefits investors.

What Are Currency And Parity ?

Exchange rate and parity, these concepts, which are frequently used by people who want to trade on money markets, have a very wide definition. Investors use the international foreign exchange market to buy and sell different currencies. Transactions made in the currencies of different countries are called Forex markets. Thanks to the exchange rate and parities, investors can earn large incomes from small amounts, but there is no rule that profits will always be made in the foreign exchange market. If an unconscious investment is made, losses may occur as a result of this situation. When trading at the exchange rate, you need to determine the currencies you will invest in.

Currencies of foreign countries, namely foreign currency, are the most traded investment instruments all over the world. Investors exchange any country’s currency for another country’s currency at the exchange rate. In this process, two different concepts emerge, namely the buying rate and the selling rate. In addition to all these, the values ​​of the currencies of different countries against each other are defined as parity. The value of the Euro against the Dollar is defined as the Euro-Dollar parity and the pairs are accepted in the international money market of two different currencies.

The price determined in Euro-Dollar parity corresponds to a different rate in the other lot. For example, if 1 Euro is equal to 1.20 Dollars, if the depreciation of the Euro increases, the Euro-Dollar parity will depreciate. The pairs affect each other. It is the most popular pair of recent times.

The pairs of recent times are known as the Japanese yen-dollar pair. The one-way residual in this investment pair also positively affects the other pair. The Japanese yen-dollar parity has been showing an upward movement recently. The pair that investors should pay attention to at this stage should be the dollar.

The EUR/GBP currency pair, which consists of the Euro Zone currency Euro and the British currency Sterling, is one of the major parities. In EUR/GBP parity, EUR is the base and GBP is the counter currency. In this process, the Euro exchange affects GBT.

The EUR/JPY exchange rate indicates that 1 JPY (Japanese Yen) can be converted to one EUR (Euro). Therefore, EUR is the base currency and JPY is the price currency. If that rate falls, the JPY will appreciate against the EUR. If it rises, the JPY will lose value against the EUR.

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