Regarding liquidity, it's worth reminding ourselves that: the larger the trade value between two countries, the more liquid the currency pair of these countries will. One example of this is gbpsek, the rate between the British pound and the Swedish Krona. Try Pepperstone Today, experience forex trading as it should. You may have noticed in the list of currency pairs that the Euro was"d first against the US dollar, but second when as part of a currency pair with the British pound. Liquidity in Trading Major Forex Currency Pairs. GBP, uSD / CHF, uS Dollar vs Swiss Franc 1 lot 100,000 base currency.9 up to 1:300 00:00 00:00, uSD. It should be noted that even the most liquid currencies can still be volatile, given the right circumstances. They combine with other leading currencies to form FX rates, but well go into more detail on this later. They can often involve currencies from emerging or frontier markets, and while some these rates might seem unlikely combinations, there is usually a reason for their existence.
In theory: either currency can come first (the rate being inverted if the order is reversed) but in practice there are commonly-adopted conventions that place currency pairs in a certain order. Trading edit Currencies are traded in fixed contract sizes, specifically called lot sizes, or multiples thereof. These two currencies share a relationship through the role of seafood in their respective national economies. An extreme example of extreme price volatility would be the sharp plunge experienced by the USD/CHF currency pair in early 2015, after the Swiss National Bank (SNB) scrapped its strategy of capping appreciation within its currency. Take part in trading on one of the worlds largest markets, which has a daily currency turnover of 5 trillion! Therefore, all currency pairs involving it should use it as their base, listed first. Perspective it would seem, is a major factor in deciding whether or not to trade in the Forex market.