Within the Forex market there are an endless number of currency pairs. Generally speaking, the liquidity of a currency pair is determined by the size of the country behind that currency and the share in the global economy. Therefore, it is easy to understand why the EUR/USD accounts for about 1/3 of the world’s daily Forex turnover. Not only is the US and Europe linked very strongly because of their financial markets, traded goods and services, political collaboration, their economic transactions account for more than any other two economies on the globe. For the same reason one can understand why the ZAR/THB (South African Rand / Thai Baht currency pair) is illiquid, meaning there is hardly any trading occurring in this currency pair.
We focus on the pairs where the liquidity is greatest. These include the crosses of the EUR, GBP, USD, JPY and CHF. Due to their liquidity we can be confident that we can enter and exit trades with relative ease regardless of trade size.