With trillions of dollars in currencies exchanging hands each day, the market for money draws considerable interest for traders.
The currency market is becoming more democratized, as well. Online brokerages offer nearly limitless access to currency exchanges, like Forex. Trading currency is also popular because there’s a potential to make a lot of money quickly.
If you don’t adjust for risk and prepare for emotionless trades, you can lose a lot of money, too.
Here’s the Globe Mail list of the top eight tradable currencies.
It may have been beaten around a bit the past few years, but the dollar is still considered a currency haven. The massive deficit may change this, though.
It’s often used in pair trades with the dollar. It tends not to have excessive price swings.
The Yen is seen as a barometer for the Asian economy. Experts also say this is a volatile currency to trade.
London is the financial capital of the world and the British Pound is still a popular currency trade. The pound has a wide trading range.
Traders consider the Swiss Franc a very “slow,” with minimal price fluctuations.
The Canadian Dollar isn’t volatile, but does trade in synch with the market for crude oil.
Australian/New Zealand Dollar
A favorite of “carry traders,” the Australian/New Zealand Dollar is often dependent on precious metals, especially silver and gold.
South African Rand
The Rand is one of the most volatile currencies on the list. It’s a favorite of traders who can bear a lot of risk.