FX pairs

Overview:

Foreign exchange (FX) markets represent the largest and most liquid financial market globally, with daily trading volumes exceeding $7.5 trillion. Currency pairs, which express the relative value between two currencies, form the foundation of FX trading. Major pairs like EUR/USD, USD/JPY, and GBP/USD typically offer the tightest spreads and highest liquidity, making them popular choices for both institutional and retail traders.

Currency markets operate 24 hours a day, five days a week, with trading concentrated in major financial centers: London, New York, Tokyo, and Singapore. Market participants include central banks, commercial banks, investment firms, corporations, and retail traders. Each participant influences price movements through their trading activities, whether for speculation, hedging, or operational needs.

FX data fundamentals include spot rates, forward rates, implied volatility, and order book depth. These metrics help traders identify opportunities and manage risk across different time horizons. Technical indicators and economic data releases, such as interest rates, GDP figures, and inflation metrics, also play vital roles in currency valuation.

In recent years, cryptocurrencies have emerged as a new asset class within the currency markets. While traditional FX pairs are influenced by macroeconomic factors and central bank policies, crypto pairs often respond to technological developments, regulatory news, and market sentiment. Major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are frequently quoted against fiat currencies (BTC/USD) or other cryptocurrencies (ETH/BTC).

API users typically require features such as historical data access, cross-rate calculations, and conversion capabilities. Support for both traditional currency pairs and crypto markets allows users to build comprehensive trading systems, risk management tools, or analytics platforms. Data quality and reliable coverage across different currency pairs are essential considerations for API users operating in these markets.