16/07/ · Which Is The Best Currency Pair To Trade In Forex? One of the best currency pairs to trade is the EUR/USD. EUR/USD has good liquidity and volatility but not too much. Unlike other currency pairs, you won't see so many big price swings when trading EUR/USD. (apart from after economic statements such as non-farm payroll on the first Friday of the month) In general, the best currency pairs for scalping are those that are not prone to very sharp movements, or if they are, such movements are less frequent. In that sense, the best group for scalping is the group of major pairs discussed below, and among them, the most liquid and least volatile one is the EURUSD pair (see live graph) 28/05/ · Before analysing the best trading pairs, it is better to enhance our knowledge of the most popular currencies that can be found in the world of Forex trading. They include: US Dollar (USD)Estimated Reading Time: 9 mins
The Best Currency Pairs to Trade - Forex Education
A beginner trader often asks themselves: which currency pair should they choose for trading? In this review, I will address the most popular currency pairs and enumerate the criteria for choosing the most suitable ones. A currency pair is the quotation of two different currencies that constitutes a currency rate and acts as an object of operations in Forex. A trade operation means that the trader sells or buys the base currency against the quote currency. The quote currency is the one to the right — it expresses the price of the base currency.
Forex is the world's largest financial market, displaying the current dynamics of global trade. It features a huge number of currency pairs — from famous to exotic ones. The most popular currency pairs which constitute the biggest volume of world trade are called major pairs. They are most often used for trading. Major currency pairs in Forex and the pairs that consist of the most popular currencies of the world economy.
Presently, such currencies are the USD, EUR, JPY, CHF, GBP, NZD, AUD, CAD. It would be logical to add the CNH, or the Chinese yuan, here, but the rate of this currency is controlled by the Central Bank of China, so the CNH is not traded that actively.
Apart from major pairs, traders actively use cross-courses currency pairs without the US dollar :. Many traders wonder how many currency pairs they should use in trading. I think, there are two approaches to the issue depending on your trading style:.
This approach is based on the fact that each currency pair is peculiar, and the nuances forex best currency pair for trading its behavior may be studied if you focus on one or two pairs. Spending some time on mastering one pair, learning the factors that influence it important news, macroeconomic statisticsyou may get a certain advantage.
This approach is based on the use of certain trading patternsPrice Action patternscandlesticksetc. Having learned to find some pattern on the price chart and having made sure of its efficacy, forex best currency pair for trading, we may start trading.
For this approach, using a lot of currency pairs is reasonable: you scan the charts, find patterns, and get started. Certain criteria and characteristics of currency pairs will help you pick up the most suitable ones.
The peculiarity of the currency market is its extremely high liquidity; hence, this parameter may be neglected as there is always supply and demand. To me, the following three criteria seem the most important:. Each currency pair has the time when it is most active. This is the time when trade volumes are the largest, and the price might move significantly. This is the time when the news that may influence the rate is published, forex best currency pair for trading.
If you trade only for a certain period intraday, better choose the pairs that are most active during the period available to you. Volatility is the fluctuation range of a currency pair during a certain time. Most often, we evaluate it on D1. So, some currency pairs trade in a relatively narrow range, while for others, the forex best currency pair for trading is wide.
The higher the volatility of a pair, the larger the possible profit; however, Stop Losses must also be high. This is for everyone to decide individually, which suits them better: high volatility with large SLs — or low volatility with equally moderate SLs. To assess and compare the volatility of different pairs, try a special indicator called ATR Average True Range. Another important criterion for choosing currency pairs is the cost of a trade. In Forex, normal expenses are the spread — the difference between the rates of a buy and sale.
On advanced ECN accountsthe spread is minimal, but they feature a small commission fee for operations. As a rule, major pairs have minimal spreads, the spread of cross courses is a bit higher, while exotic pares feature increased spread. I advise beginners to start with forex best currency pair for trading pairs. Depending on your trading style, focus on one pair, or trade several, forex best currency pair for trading.
Three important criteria — volatility, cost per trade, forex best currency pair for trading, and activity time — will help you with your choice. Has traded in financial markets since The knowledge and experience he has acquired constitute his own approach to analyzing assets, which he is happy to share with the listeners of RoboForex webinars. Victor Gryazin, forex best currency pair for trading. Wilberforce Nsabiyumva. Which companies can benefit from the development?
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English Русский Melayu ภาษาไทย Português Polski Українська Español اللغة العربية Italiano Deutsch Czech Estonian Latvian Tiếng Việt. Try Free Demo. Main · Education · How to Choose a Currency Pair for Trading in Forex? How to Choose a Currency Pair for Trading in Forex? Contents What is a currency pair? The characteristics of major currency pairs How many currency pairs do we use in trading?
What is a currency pair? which means 1 euro costs 1. The characteristics of major currency pairs Major currency pairs in Forex and the pairs that consist of the most popular currencies of the world economy. It is the most popular currency pair. The trade volume of the currency pair is maximal here, while the spread is small and volatility is average. It is most active during the European and American sessions and reacts vividly on the news in the Eurozone. The Swiss franc is a safe-haven asset, thus the pair may go down during crises.
It is most active during the European and American sessions. The currency pair has increased volatility and is popular among traders. It may demonstrate mighty movements of several patterns or forex best currency pair for trading nearby Stop Losses by false breakaways. The pound reacts dramatically to political events and economic data in Britain. The pair is most active during the European and American sessions. The Japanese yen is quite a peculiar currency that might move counter all other major pairs.
It is a safe-haven asset, so it is prone to decline during crises and, vice versa, grow in the times of ascending dynamics in stock markets. The pair is most active during the Asian session. The CAD is a commodity currency; its course correlates with the dynamics of oil prices. The growth of oil drags down the pair, while the falling of oil pushes it up.
It is most active during the American session. These currency pairs have very similar behavior. Normally, forex best currency pair for trading, they are calm, influenced by the prices of metals and powdered milk. They are most active during the Asian session. How many currency pairs do we use in trading? I think, forex best currency pair for trading, there are two approaches to the issue depending on your trading style: Minimum pairs This approach is based on the fact that each currency pair is peculiar, and the nuances of its behavior may be studied if you focus on one or two pairs.
A wide range of pairs This approach is based on the use of certain trading patternsPrice Action patternscandlesticksetc. The criteria for choosing currency pairs Certain criteria and characteristics of currency pairs will help you pick up the most suitable ones. To me, the following three criteria seem the most important: Time of activity Each currency pair has the time when it is most active.
Volatility Volatility is the fluctuation range of a currency pair during a certain time. The cost of a trade Another important criterion for choosing currency pairs is the cost of a trade.
Material is prepared by Forex best currency pair for trading Gryazin Has traded in financial markets since Please enable JavaScript in your browser to complete this form. Further reading Stocks. Sunstroke: Should We Invest in Development of Solar Energy? Market news.
Top 5 Currency Pairs to Trade for Best Profit
, time: 9:38The Best Currency Pairs to Trade for Beginners | Trading Education
In general, the best currency pairs for scalping are those that are not prone to very sharp movements, or if they are, such movements are less frequent. In that sense, the best group for scalping is the group of major pairs discussed below, and among them, the most liquid and least volatile one is the EURUSD pair (see live graph) 28/05/ · Before analysing the best trading pairs, it is better to enhance our knowledge of the most popular currencies that can be found in the world of Forex trading. They include: US Dollar (USD)Estimated Reading Time: 9 mins 16/07/ · Which Is The Best Currency Pair To Trade In Forex? One of the best currency pairs to trade is the EUR/USD. EUR/USD has good liquidity and volatility but not too much. Unlike other currency pairs, you won't see so many big price swings when trading EUR/USD. (apart from after economic statements such as non-farm payroll on the first Friday of the month)
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