Everything You Need To Know About Trading Currency Pairs

And as its quote would be against the US Dollar, it could pay off to stay up to date on that too. As mentioned above, the major currencies on the Forex market include USD, AUD , CAD, and a few others. There are a number of popular pairs amongst the majors, but it’s best to cultivate a deep understanding of them if you want to make the most of your Forex trading. There are hundreds of nations, which means it’s easy enough to pick a small number of currency pairs to start trading with. But if you don’t choose carefully, you could struggle to achieve the type of results you’re looking for.

First off, many of the major currency pairs are correlated in their price movement, meaning they move almost identical to one another. This two-part article will first address the question “which currency pairs are best to trade? ”, and next week we will address the question “what are the best times to trade? ” You should use this two-part article series as a reference guide to answer any question you may have about which currency pairs to trade and what times to trade them. Besides, there are less popular currency pairs that can also be used for speculative trades. Speculation is the core principle of profiting from Forex — buy low, sell high.

How To Choose A Currency Pair For Trading In Forex?

While the pros of trading the cross currency markets outweigh the cons, there are a number of speed bumps you should know about before initiating a strategy that incorporates cross currency trading. At the end of the day however, a trader has to decide for himself which will of the currency pairs will be the best forex pairs to trade. This is because other factors are at play when it comes to a trader’s profitability.

What Currency Pairs Can I Trade

Any content on this website is subject to change without notice. FxPremiere won’t accept liability for any damage, loss, or profit loss as a result of the use or relying directly or indirectly on such information. We don’t recommend only the use of technical analysis for making trading decisions.

An Introduction To Forex (fx)

Exinity Limited is a member of Financial Commission, an international organization engaged in a resolution of disputes within the financial services industry in the Forex market. Visit our Trading Accounts Comparison page today to discover the trading account that best suits you. Trade with ultra-tight spreads starting from 0.0 on our most popular account type, the Advantage account. Just so you know – only FX trading on our Micro account is available on MetaTrader 4, while those with an Advantage or Advantage Plus account can trade both FX and FX Indices on either MetaTrade 4 or MetaTrader 5. These platforms are equipped with all the tools you need to get the most out of your trading experience, including a range of technical indicators, interactive charts and an exemplary security system. Combine the power of MetaTrader with FXTM’s award-winning services for an unbeatable trading experience.

When a forex pairs include a currency from a nation with a developing economy, such as Turkey or Hong Kong, they are classified as exotic. Forex, also known as FX, refers to the foreign exchange market where international currencies are traded. If for Pivot Points Trading Strategy instance you average 5 pips per trade net of the spread and the spread is 3 pips, you pocket 2 pips per trade net. If you can get the same 5 pips per trade and only pay only 1 pip for the spread, you’ve just doubled your average profit per trade.

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In Forex, this exchange rate is constantly changing and it is affected by currency supply and demand. You may have noticed that I said pip values are approximately $1 dollar. The true value is determined by mathematical formulas and the exchange rate of the currency pair. Some pip values are fixed and others fluctuate slightly as one currency rises or falls in value relative to the other currency in the pair.

When should you not trade forex?

The 3 Worst Times to Trade Forex (And When to Trade Instead)Immediately Before or After High-Impact News. As traders, volatility is what makes us money.
The First and Last Day of the Week. The first 24 hours of each new trading week is usually relatively slow.
When You Aren’t in the Right Mental State. Trading is a game of mental discipline.

Forex calendars are available providing details to help traders understand forecasts or predictions related to market activities. Fortunately, there’s a wealth of analytical information on the major currencies and pairs out there, including Dow Jones Industrial Average ours below. Furthermore, there’s usually an international code which denotes the pairs’ set-up. So, USDCAD 1.40 would mean a US dollar equates to $1.40 CAD. In this example, USD is the base currency while CAD is the counter currency.


It is a bit of a stretch to get your head around if you’re coming across spread for the first time but this is one of the ways traders pay the market to trade – its a cost of trading. The wider the spread the more it costs, the narrower What Currency Pairs Can I Trade the cheaper it costs – all other things being equal. If you think EUR is likely to increase in value against USD – that would mean the price you are seeing quoted will go up – then you would buy the EUR/USD currency pair, or “go long”.

So, while the major currency pairs can experience the most impressive trading conditions with lower spreads, they’re not guaranteed to be the best pairs for every trade. This type of exotic currency pair will not always be available for trading, though some brokers may carry a selection of them. These pairs are generally traded quite a bit less than the major or minor pairs. This can mean that the spread is much higher in some cases. These pairs can also be significantly more volatile than the other types of currency pairs so this is also something to keep in mind when trading. Choosing a currency pair for trading requires an individual approach based on personal preferences.

Currency Pairs Explained

For example, if you buy EUR/USD today at one price and sell it 6 months later for a higher price, you will earn a profit. Forex is a global currency trading market surpassing all other What Currency Pairs Can I Trade financial markets by its trading volume. Every day, banks, funds and private investors buy and sell different currencies equivalent to trillions of dollars, and this figure is growing.

How many pips does Eurusd move a day?

In one day, the EURUSD pair can move by 50 pips and then move by just 2 pips in the following day. Still, analysts have created the average number of pips the EURUSD pair moves daily. In the past ten years, the average pip movement for the EURUSD is about 60 pips.

The risks associated with trading crosses can also be significant, because many times you are dealing with less developed economies, so you need to monitor multiple political and economic situations more carefully. Forex It is the largest financial market in the world and shows the current dynamics of global trade. It contains a large number of currency pairs – from popular to exotic currency pairs. The most popular currency pairs, which account for the largest volume of global trade, are called the major currencies.

However, once the London session is over, there is a decrease in the EUR. It is because most of stores and businesses in Europe have closed by that time. In this case, it is best to make your investment in pairs with Asian currencies like the Japanese Yen . In Forex, the pairs are between different currencies, the most popular being the EUR/USD pair.

What Currency Pairs Can I Trade

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