<h2>Common Currency</h2>
<p>The <strong>common currency</strong> is a term used in forex trading to describe a currency that is paired with many others in the market. These currencies are considered 'major' or 'common' due to their widespread use in global trade and investment.</p>

<h2>How It Works</h2>
<p>Common currencies are typically the currencies of developed economies. They include:</p>
<ul>
  <li>USD - United States Dollar</li>
  <li>EUR - Euro</li>
  <li>GBP - British Pound</li>
  <li>JPY - Japanese Yen</li>
  <li>AUD - Australian Dollar</li>
  <li>CHF - Swiss Franc</li>
  <li>CAD - Canadian Dollar</li>
</ul>
<p>These currencies are paired with others to create forex pairs, such as EUR/USD, GBP/JPY, or AUD/CHF. The value of one currency in the pair is quoted against the other, allowing traders to speculate on their relative strengths.</p>

<h2>Why It Matters for Traders</h2>
<p>Common currencies matter for traders for several reasons:</p>
<ul>
  <li><strong>Liquidity</strong>: Common currencies are highly liquid, meaning they can be traded easily and quickly. This makes them ideal for day trading and scalping strategies.</li>
  <li><strong>Volatility</strong>: While common currencies are generally stable, they can experience periods of high volatility, particularly when there are significant economic or political events.</li>
  <li><strong>Correlation</strong>: Common currencies often move in correlation with each other. Understanding these correlations can help traders diversify their portfolios and manage risk.</li>
</ul>

<h2>Example</h2>
<p>Let's say you're a trader using STB Provider's MetaTrader 5 platform. You're interested in trading the EUR/USD pair. You know that the EUR is a common currency, so you expect high liquidity and potential volatility around key economic indicators like the European Central Bank's interest rate decisions.</p>
<p>You decide to open a position with a leverage of 1:300, allowing you to control a larger portion of the market with a smaller initial investment. You set your stop loss and take profit levels based on your analysis of the pair's recent price action and your understanding of the common currency's characteristics.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Common currencies are the currencies of developed economies, including the USD, EUR, GBP, JPY, AUD, CHF, and CAD.</li>
  <li>They are highly liquid and can be traded easily and quickly.</li>
  <li>Common currencies can experience periods of high volatility, particularly around significant economic or political events.</li>
  <li>Understanding the characteristics of common currencies can help traders make informed decisions about which pairs to trade and how to manage risk.</li>
</ul>