HOW TO CHOOSE YOUR BEST CURRENCY PAIRS WHEN TRADING IN THE FOREX MARKET

Posted by on March 27, 2020


Before selecting your best currency pairs to trade, of course, you must know what currency pairs are? What are their forex pros and cons?

You may see that forex trading or money exchange trading is all about selling and purchasing of the currency pairs. In order to take part in money exchange trading, you need to know the amount and the relations between currency pairs. The correspondences of each type of currency in a pair is all you need to know to define a pair of currency. A currency pair is often displayed by the international recognition of the two currencies following with the quote of based currency in accordance with the counted currency. There is always a worldwide recognition to determine a currency pair, for instance, the quotes of EUR/USD is 1.25, it says that one euro is equal to 1,25 us dollars. In this scenario, the euro is based currency whereas usd is counted one. This is the reason why you will see the currencies appear in pairs in all the market on the world. In today’s topic, we will talk about the best currency pairs to trade.

Best currency pairs to trade

It is the fact that the most popular currencies are the strongest ones. And the most common traded currency all over the world is the us dollar. The reason for this is that is the American economics is the world’s biggest. The us dollar is the most favourite measurement in almost all business deals and currency transactions worldwide. This is the currency that rules the world’s economy.

Below is the list of major pairs that is commonly traded in the forex market over the world. They are also the pairs that bring you a high level of liquidity and take to most volume of trading values. There are some pairs such as EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, USD/CAD.

These currency pairs are moving in accordance with each other and the volume of trading is changed within a minute. These pairs are automatically connected to the countries with powerful economics and the countries with great trading volume. In general, these pairs are to most fluctuated ones and the movements in currency prices is very likely to happen.

But is this the thing that make these currency pairs the best? Not  really, this is due to the fact that traders can earn big profit or suffer from big lost according to the price fluctuations. These pairs that I have mentioned previously are those that provide the best trading conditions as well as lower spreads. However, it is not the thing that makes them the best currency pairs to trade.

The list of currency pairs that are good for you

There are more than two hundred countries and regions in the world and it is sure that you will find out the best currency pairs to trade. Nevertheless, these pairs of your choices may not bring you profits. Therefore, the question is which are the best currency pairs to trade? Which are the most common used by traders? Which pairs pay you the most and what is the reason? So, let’s keep reading to find out the answers to these questions

I think that we should know what are the most popular currency pairs before understanding why they are the best to trade. The most common pairs that you can find in the forex market are: USD, EUR, AUD, CHF, CAD, JPY, GBP.

In summary, among these most popular currency pairs you can choose some of the best currency pairs to trade for yourself. The most important factor that impacts on your possibility of success in forex trading is your understanding on the currency pairs. If your choice is one of the pairs that we have mentioned above, your trading will be more comfortable. Because there are many advice, information as well ad analysis about them. Next, learn about the best leverage for forex.