Which currency pairs offer the best opportunities for traders?

The forex market is open throughout the week (excluding weekends) and offers the largest trading volume and liquidity across all financial markets. Movements in the exchange rates of currency pairs can prove to be quite profitable for currency traders, but there are hundreds of currencies available and some offer better rewards with much less risk.

Which currency pairs offer the best opportunities for traders?

A forex trading account gives you access to hundreds of trading instruments and besides currency trading, you can also speculate price and profit from movements in the stock, indices and commodity markets.

However, currencies are the most popular financial asset and traders can analyze a country’s economic growth and policy, gauge supply and demand as well as other metrics to predict if the exchange rate between two currencies will move up or down.


What are currency pairs?

Currency pairs is how traders on the forex market trade currencies and profit from fluctuations in their exchange rate. A forex quote consists of a base currency and a counter currency i.e. EUR/USD followed by the exchange rate e.g. 1.1423.

In the above example, the base currency is the EUR, the USD is the counter and the exchange rate of 1.1432 indicates that 1 euro is equal to $1.1423.

Currency traders can either open a buy position or a sell position at any point in time and profit if the market moves in their favor. For example, if the rates going up, you should open a buy position and close it before the market starts to drop back down.

However, currency trading also allows traders to profit from downward movements as well and therefore, you can open a sell position and while the rates are declining, you are still gaining from the movement.


Do major currency pairs offer the best returns?

It should be obvious that the most traded currency in the forex market is the U.S dollar. After all, the U.S economy is the largest and most powerful in the world and currency traders flock to strong and stable currencies as they offer higher liquidity and usually better pricing.

Since the USD is the most traded currency, all currency pairs that include the USD as the base or counter currency are considered the major currency pairs and are the most popular.

The major currency pairs include the following assets:



Usually, these pairs offer the higher movements throughout the day and more competitive spreads. This is why the majority of currency traders stick to the major ones for most of their trades.

However, despite the fact that major currency pairs offer the higher potential returns, the inherent volatility and rapid fluctuations can be risky and result in unexpected losses.

Therefore, traders should first consider which pairs align better with their trading strategy and risk tolerance before making an investment. If you want to keep abreast of any economic developments or events that may trigger volatility in the financial markets, you should always refer to an economic calendar before opening a position. 



This is by far the most popular currency pair in the forex market as it represents the two largest economies in the world and their currencies offer high liquidity without being overly volatile.

If you prefer to limit your risks while still enjoying better trading conditions and low spreads, EUR/USD is likely the best candidate for you. Also, due to the popularity of this currency pair, you should be able to find plenty of information and market analysis regarding its daily movements and future direction.



Both currencies in this pair are considered as safe-havens due to their stability and appreciation during times of economic crisis and uncertainty. This pair offers tight spreads and typically forms long-term trends with plenty of profitable opportunities throughout the trading week.



The pairing of the pound with the dollar is arguably the most volatile of the major currency pairs available, but its large movements and rapid fluctuations are quite enticing to aggressive traders who know how to handle the excess risk by limiting their position and leverage.


If you are interested in learning more about the most profitable assets in the financial markets, you can open an account with CM Trading and discuss your profit targets and risk appetite with your personal trading specialist.

Register now to start trading!

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