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16 Most Popular Traded Currency Pairs

Therefore, when China publishes some economic data, not only the Chinese yuan is influenced, but also the Australian dollar. Your watchlist should contain currency pairs that possess desirable characteristics. Of course, there isn’t a hard and fast rule about this because you need to choose the characteristics that work best for you.

best currency pair to trade

I enjoy trading the majors, but I certainly don’t discriminate should a compelling setup arise on something less liquid. An example of two positively correlated pairs would be EURUSD and GBPUSD. In our previous example, if the EURUSD ends the session higher by 100 pips, it’s likely that GBPUSD also ended the day higher. Remember that if the quote currency experiences heavy appreciation, the pair is likely to move lower over time. During times of economic uncertainty or struggle, investors tend to favor the US dollar.

Whenever you buy the breakout of the highs, the market tends to go up for a few days. It means that whenever you buy the highs or short the breakdown of the previous day low, you tend to lose money. If a market has a trending behaviour, then the equity curve should slope up over time. Whatever order that you put into the markets is probably not going to make a difference at all.

What currency pairs can I trade with FXTM?

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. To keep up to date with any Brexit news that may have affected the price of the EUR/GBP currency pair, visit IG’s Brexit events page. The pairing of the euro and the British pound in the EUR/GBP pair is often seen as one of the most difficult pairs to make accurate price predictions for. This is because EUR and GBP have had a historical link given the proximity of the UK to Europe and the subsequent strong trade ties between these two economies.

The USD/CHF currency pair is made up of the US dollar and the Swiss franc and is commonly known as the ‘Swissie’. USD/CHF is a popular currency pair because the Swiss financial system has historically been a safe haven for investors and their capital. Another strong Forex pair to trade with is the United States dollar and Japanese yen pair.

Do and don'ts in forex trading?

  • Have a trading plan!
  • Do your own research.
  • Be patient!
  • Goals.
  • Don't overcomplicate strategy.
  • Don't let your emotions take over.
  • Don't fall into the trap of revenge trading.
  • Don't use money you can not afford to lose!

Another critical factor in choosing the best currency pair to trade is its availability in your broker. Both currencies have exchange rates on which the trade will have its position basis. As you may know, all the possible trading’s within the forex market, whether selling, buying, or trading, will occur through currency pairs. The Swissie is a major currency pair, and it tends to negatively correlate with the GBP/USD and the EUR/USD pairs.

Best Time to Day trade the EUR/USD Forex Pair

As the name implies, commodity currencies are those that rely on their respective country’s export activities. It means that if you were to take a trade on the EURTRY (Euro / Turkish Lira), you’re tying up a portion of your capital that could be used elsewhere. You now have a level of exposure that you didn’t have 5 minutes ago. And keep in mind that the ZARJPY is relatively “mild” in terms of the chop you might see on any given day. As you know from the currency tables above, that’s the South African rand versus the Japanese yen. While you may be able to find a few that have favorable movement, for the most part, they are extremely choppy and volatile currencies to trade.

What is the safest currency pair to trade?

  1. EUR/USD. The EUR/USD currency pair takes the largest portion of the overall trading volume.
  2. GBP/USD. GBP/USD is another heavily traded currency pair.
  3. USD/JPY. USD/JPY is the second most traded currency pair.
  4. USD/CAD.
  5. AUD/USD.
  6. USD/CNY.
  7. USD/CHF.
  8. GBP/JPY.

Keep in mind that each currency pair is essentially the country’s economy, meaning you will have to manage two significant economies while trading with a specific Forex pair. That's why we really encourage you to take your time to get familiar with the markets, do your research and always practice good risk management. We've got a bunch of free tools to help you get to grips with that here. The most popular choice for every kind of trader, start with a few dollars or tens of thousands. Many traders make the mistake of skipping these necessary steps before putting their hard-earned money at risk. This is why you’ll often see me commenting on currency crosses over in the daily setups.

Cross Currency Pairs (A.K.A Minors)

Using the above examples, you can trade the USD/GBP currency pairs during the morning hours. This pair is excellent for beginners due to it is predictability. Traders should pay attention to influential factors, including recessions and economic crises, as they play a considerable role in the currencies’ value.

On Kite, chart data for cross- currencies is only available from 27 Feb 2018(launch of cross-currency trading). The cross-currency rate for the pair will be calculated using the reference rate of the individual currency quoted is trademax regulated in INR. The options contract follow suit to USDINR options, that are already traded on the exchange. Forex traders often commit their hours to memory, paying particular attention to the hours when two exchanges overlap.

What are currency pairs?

The exchange rate represents how much of the quote currency is needed to buy 1 unit of the base currency. As a result, the base currency is always expressed as 1 unit while the quote currency varies based on the current market and how much is needed to buy 1 unit of the base currency. New forex investors should consider opening accounts with firms that offer demo platforms, which let them make mock forex trades. With the practice trades, you can tally gains and losses to see how you would perform with real trading. Once investors learn become more experienced, they can begin making real forex trades. These two trading centers account for more than 50% of all forex trades.

Fridays – liquidity dies down during the latter part of the U.S. session. The busiest times are usually the best times to trade since high volatility tends to present more opportunities. So now we know that the London session is the busiest out of all the other sessions, but there are also certain days in the week where all the markets tend to show more movement. Learn how to trade forex in a fun and easy-to-understand format.

These commonalities lead to both positive and negative associations. The ever-changing nature of the financial markets doesn’t offer guarantees such as this. However, the assets mentioned above do have a history of retaining their value when things turn sour. For those who have always traded the majors and crosses, the ability to view historical data is something you’ve come to expect.

What Is The Best Currency Pair To Trade In Forex?

A combination of all these factors make the pair one of the most liquid in the world. Today, with all areas having access to technology, the industry has seen exponential growth. People from rich countries like the United States and those from poor countries like Zimbabwe are participating in this trade. Get tight spreads, no hidden fees and access to 12,000 instruments. needs to review the security of your connection before proceeding.

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