Currencies Used In Forex Market

At the beginning its cleared that the aim was to form Forex Market to fix the rate of currencies against US Dollar. 

So clearly in market several currencies have to survive. From thousands of currency Forex market allows only seven currencies:

·         Euro (EUR)

·         British Pound (GBP)

·         United States Dollar (USD)

·         Swiss Franc (CHF)

·         Japanese Yen (JPY)

·         Australian Dollar (AUD)

·         Canadian Dollar (CAD)

If you are an investor in Forex market you need to keep a clear concept over the currencies. Many beginners keep their focus on the currencies that they believe are the best, such as rare or unknown currencies. This can lead to problems because of the amount of volatility and the lack of liquidity in the market place. There are no currencies in the world that you absolutely should stay away from, however that changes often. If you are new to the world of Forex trading.

Therefore, it is a better option for you to stick with some of the more well-known currencies if you hope to make a profit right out of the door.

All the currency traded in the market as pair. You do want to stay away from currencies that pair exotic or uncommon currency pairs together. It is often best to select those pairs that trade most often since this is where you will find the largest opportunity for profit, anyway. Any novice Forex trader who dabbles in exotic currencies or those pairs that are simply uncommon are likely to find themselves losing money.