Forex currency exchange venues
The biggest forex currency exchange venue is London. Billions of dollars in currency exchanges occur daily in the Capital of the foreign exchange markets.
London is the largest and most important dealing center in the world for currency exchanges, with a market share at more than 30 percent according to the BIS survey (Bank of International Settlements).
Most of the dealing desks of large banks are located in the forex currency exchange venue of London; the majority of major FX transactions are completed during London hours due to the market's high liquidity and efficiency.
The vast number of foreign exchange market participants and their high transaction value make London the most volatile FX market of all.
London is currently handling something close to $1.5 trillion in flows per day on average. Roughly twice of what second place, New York does.
Forex currency exchange centers by market share:
According to BIS, (Bank of International Settlements) the list of the biggest FX Trading Venues goes like this…
Which currency pairs are traded the most?
Well my friend, The spot forex market is not the largest component of forex trading, futures trading takes a lot of Market Share as well as Swaps.
Despite what you might have heard. It’s actually the swap market which is one of the largest part. Given that most forex trading is actually related to international trade and capital flows. In plain English it means, Exports and Imports, done by different countries.
The London forex currency exchange venue
EUR/USD is actually more like 40% of the London Market. USD/JPY is still in second position, but at a lesser amount than in NY trading (call it 15%). GBP/USD is slightly less than USD/JPY. The group of EUR/JPY, EUR/GBP, and USD/CHF make up the rest of the top 75%.
The New York currency exchange Venue
In the venue of New York, The EUR/USD accounts for about a third of all forex action. USD/JPY is about 20%. The trio of EUR/JPY, GBP/USD, and USD/CAD make up the rest of the pairs accounting for 75% of the trading activity on average.
The Sidney, Singapore and Tokyo currency exchange venue
Not surprisingly, AUD/USD is the biggest pair traded in the Sydney (about 25% share), but EUR/USD and USD/JPY are the next two most active pairs, and in Singapore and Tokyo EUR/USD and USD/JPY are also First and Second as they are in the rest of the world.
So the bottom line my friend is that EUR/USD and USD/JPY are the two most actively traded currency pairs in the forex market in all forex currency exchange venues. GBP/USD is third, with EUR/JPY generally forth.
****I recommend that CHART settings be Set to the venue you are trading. For example if you are trading the London forex exchange venue. Set your charts to display data from 2 am NY time to 11:30 am NY time. Why? because this is where most of the volume is traded and the Supply and Demand levels are determined best at these hours of trading.
If you are trading the Singapore venue set your charts to display the markets hours of Singapore. In currency markets every venue affects the currency price on its own carrying on to the next or following session depending on the time zone. So a move that started in the London session can be completed or rejected on the NY forex currency exchange venue.****
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