In the Forex trading market, you have several currencies to choose from. Most Forex trading deals are done using the major currencies. These are the seven most frequently traded currencies.
The major currencies include:
- USD – United States Dollar
- EUR – The European union Euro
- JPY – The Japanese Yen
- GBP – The UK Pound
- CHF – The Swiss Franc
- CAD – The Canadian Dollar
- AUD – The Australian Dollar
- All other currencies other than the major currencies are called minors
Trading these major currencies are banks, companies, investment firms, hedge funds and Forex trading brokers.
Banks do a lot of the trading themselves. These include trades that are done for the bank's clients and ones that are done for the bank itself. Banks can trade huge amounts of major currencies, depending on the size and funding of the bank.
Central bank can influence and change the Forex trading market by increasing interest rates, for example, or manipulating with other economic factors.
Companies are also important contenders in the Forex trading market, trading goods and services between countries and nations. With the some deals made of large companies, the Forex trading market is liable for rapid change and fluctuation. This is why it is important to stay updated with economic factors.
The behavior of companies in the Forex trading market is analyzed through fundamental analysis, so changes can be predicted.
The private investors, trading major currencies from all around the world, consist of only a small portion of Forex traders. Nonetheless, these traders can take an active part in the Forex trading market whenever they want to, and in doing so join other banks and large companies. Using margin Forex trading also allows you to participate in Forex trading of major currencies for larger sums of cash.
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