Tradable currencies in the world
Even though foreign exchange market is not a platform to help traders and investors to get rich within short span of time but in recent years, it has been gaining popularity among individual investors considering the risk is lower compared to stock market and bonds.
Everyday, billions of world currencies are being traded but it is usually handled by experienced traders and license brokers. Forex has emerged as one of the world’s largest online trading markets. There are several characteristics that encouraged investors to try their hands in Forex instead of stock market – unlike stock market, Forex is conducted daily 24/7 and higher leverage margin.
Besides, one can trade Forex anywhere around the world as long as you have PC and Internet connection to click and browse through the websites. Most of the countries around the world are using their own currencies but bear in mind not all can be traded in the market.
As an investor or broker, besides learning the basics of Forex and interpreting charts, you need to understand the difference of each currency to determine which can be traded in Forex market. Conducted correctly, the results can be rewarding and you are on your way to earn more profits. If you are still unsure on which currencies can be traded, look no further as here are some practical tips and guides for you.
Basically, the top four tradable currencies are U.S. dollar (USD), European Euro (EURO), Japanese Yen (JPY) and British Pound (GBP). The world’s largest economy is United States. Thus, USD is one of the main currencies controlling world’s market. Experienced traders usually purchase USD and trade it with other currencies such as Euro, British Pound and Yen. The currency is controlled by central banks.
Meanwhile Euro is often traded with other currencies since the currency is widely used in 16 out of 27 European Union (EU)members. Among some of the countries using Euro are Austria, Belgium, Cyprus, Germany, Italy, Finland, Greece, Portugal, Spain and plenty more. Besides USD, Euro is dubbed as one of the most traded currencies in the world.
Of all the countries in Asia, only Japan managed to make it into the list with one of the most tradable currencies in the world. Japanese yen (JPY) was incepted by Meiji government. If you intend to trade Yen, keep an eye on the crossover of London andU.S. hour which is between 6 am to 11 am.
British Pound (GBP) or more commonly referred to as ‘pound sterling’ or ‘cable’ is another widely traded currencies in the world. But a reminder to brokers, the currency is motivated by supply and demand. One is not allowed to trade Ringgit.