EUR/USD: Product Description
About EUR/USD
The currency pair EUR/USD is the most traded FX pair in the world. Although over the years, its share in terms of turnover in the global foreign exchange market has been slightly decreasing, it remains the most traded currency pair since the release of the euro.
According to a recent survey by the Bank for International Settlements*, the average share of the euro-dollar stands at 27% (recorded daily averages in April 2007). This is a slight decrease from 2004, when its share represented 28% (or even 30% according to other research work published at the time).
Indeed, over the last couple of years, the share of the main currencies in the global turnover fell while the share of currencies belonging to emerging markets rose. The share of the US dollar in the FX market turnover decreased from approximately 90% in 2001, to 88.5% in 2004 and 86.3% in 2007 (on a 200% basis). This decreased share can be explained mostly by valuation effects resulting from its depreciation over the last three years.
Share of the EUR/USD in the FX market turnover:
- 2001: 30%
- 2004: 28%
- 2007: 27%
EUR/USD Rate/price
Please look on Finotec's Real Time Forex Quotes Table (the table is displayed on each page of our site) or log in to the Trading Platform.
The EUR has been strengthening throughout 2006 and 2007 against the dollar, regularly hitting new record highs, to 1.4282 and higher. The weakness in the dollar can also be attributed to sudden shifts in interest rate expectations. As of October 2007, there was talk of it breaking the 1.45 psychological barriers.
EUR/USD Trade Specifications
| Product symbol | EUR/USD |
|---|---|
| Type | Forex |
| Rate example | 1.4228 |
| Spread | 3-10 pips |
| Leverage | 100:1 – 33:1 |
| Size of 1 lot | USD 100,000 |
| Min transaction size | 50,000 |
| Max transaction size | 1,000,000 |
| Pip value (for a standard lot) | USD 10 |
| Starts (GMT) | Sunday night 24:00 |
| Ends (GMT) | Friday night 21:00 |
* Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2007 – Preliminary global results, September 2007