What are the Best Currency Pairs to Trade?

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The choice of the best Forex currency pairs to trade is not a walkover, as it might seem at first glance. The main factors to consider when choosing the best currency to trade include volatility, spread, trading strategy and the level of difficulty of forecasting the course.

There is a huge variety of currency pairs available for trading in the Forex market. Apart from them, there is a large number of other popular currencies. So what currency pairs are the best currencies to trade in Forex, what tools are to be excluded from your portfolio? The top currency pairs are characterized with the highest liquidity of transactions, global popularity and a huge number of players. By the way, the prize of spectator sympathies, no doubt, would also have been accrued to it.

It accounts for over one-third of the total volume of transactions on Forex. This is due to various factors, the main of which are the scale and transparency of EU economies and the US. High liquidity of the instrument, which best trending forex currency pairs the favorable conditions of conclusion of transactions.

Therefore, it best trending forex currency pairs popular and the most traded currency amongst professional traders focused on short-term aggressive strategies. The pair quotes are sensitive to fundamental factors and statistical data on the state of the British economy and the actions of the Bank of England, as well as to macroeconomic data in the USA. The pair have high volatility, allowing you to maximize profit on short time periods.

In addition, a higher rate of the Bank of England compared to the U. Federal reserve allows financial market participants to use the pound sterling as a tool for medium and long — term investments. It is undoubtedly, one of the best currency pairs to trade. They are held out as commodity currency pairs, as their prices are closely correlated with gold and oil. Cross-currency pairs Crossesi. From the point of view of trading activity, they are behind.

This group includes the following popular currency pairs: This list is not exclusive, as there are more traded currency pairs. Of course, not all of these popular cross-currency pairs should be used in trading. Exotic pairs Exoticsi. These currency pairs are characterized by low liquidity, high volatility, high spread and risks.

Profitability of transactions on these assets is inevitably susceptible to decline because of the exotic currency pairs are poorly amenable to technical analysis, and forecasting of their trend is very difficult. They are no not so many market participants, who trade them, and usually these are the representatives of the countries concerned. Beginners are not recommended to trade many currency pairs at the same time.

Specialization in one or two instruments gives much better results, and knowledge of successful trading on the major and most traded currencies in the world. You best trending forex currency pairs gradually expand your trading portfolio best trending forex currency pairs new currency instruments. Concentrate on the most simple and quite popular currency pair, and it will bring you profit subject to observance of other Safe trading rules!

Even the most seasoned professionals have been known to accidentally buy instead of sell or trade the wrong quantity or even the wrong security from time best trending forex currency pairs time Social trading is the most exciting way of trading, it's fun, and it's the easiest way to make profits and big money in the forex world.

By using the social trading, the trader can benefit from other trader's skills, also he can make a profit from Company fundamentals, such as the amount of money the companies earns and how efficiently they utilise their resources, drive the share and CFD markets. Traders buy companies they believe One can never emphasize enough the importance of money management skills.

No matter if we are talking about taking care of your personal finances or choosing the right size for a trade - money Typically short-term, speculative trades are generally coupled to major market events such as central bank interest-rate decisions and company results. Traders want to capitalize quickly through a timely So it seems that Japanese are not only best trending forex currency pairs turning raw fish into tasty overpriced pieces of art called sushi. Exactly, they also make fantastic cars and quartz watches.

There are dozens of economic indicators that can impact the forex market, and many traders simply don't know which news best trending forex currency pairs the market the most and which to dismiss Trading signals allow traders to copy operations of other traders who are signal providers.

Using their Meta Trader 4 and Meta Trader 5 terminals, subscribers can The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including graphical information about the forex companies, brokers and others, is best trending forex currency pairs solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing.

Forex Awards shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies.

The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff. As noted above, the economy of the EU and the US are among the most transparent in the world. Favorable terms and conditions.

Ability to predict price dynamics by the means of technical analysis, thanks to its best trending forex currency pairs liquidity. Sensitivity to best trending forex currency pairs factors. A wide range of fluctuations in the share price provides good opportunities for experienced traders. High liquidity of trading in the morning. Misuse of leverage Even the most seasoned professionals have been known to accidentally buy instead of sell or trade the wrong quantity or best trending forex currency pairs the wrong security from time to time Social Trading Tips Social trading is the most exciting way of trading, it's fun, and it's the easiest way to make profits and big money in the forex world.

Fundamental Analysis Company fundamentals, such as the amount of money the companies earns and how efficiently they utilise their resources, drive the share and CFD markets.

Speculating with CFDs Typically short-term, speculative trades are generally coupled to major best trending forex currency pairs events such as central bank interest-rate decisions and company results. Top market news a trader should follow There are dozens of economic indicators that can impact the forex market, and many traders simply don't know which news move the market the most and which to dismiss Automated trading with Meta Trader Trading signals allow traders to copy operations of other traders who are signal providers.

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The Forex market has a large list of currency pairs which traders can choose to trade. Each country or economic zone offers their currency in an exchange with another currency zone, which creates dozens of currency crosses. The list varies from the most famous i. Eight methods are mentioned for you to choose the best ones, including currency correlations. Selecting the best pairs depends on your strategy. Obviously, if the EURUSD is a trend then this is a great currency pair for a trend trader, but not so good for a range or reversal trader.

Basically, you want to select the pairs which have the best match with the market structure you are looking for in the strategy. If you use this method, then it is certainly possible that a pair which was interesting in the past becomes less interesting in the future; and vice versa. For instance, if you are a trend trader and the EURUSD breaks out of its consolidation to start a downtrend, then this price action and the pair would become interesting.

This is a considerable disadvantage as more risk is taken without any diversification benefit. Selecting the best moving pairs depends on avoiding over-reliance one currency. When you only trade one currency against all other currencies, you have all of your eggs in one basket. This means that if the Euro drops and you are long on a numerous Euro related crosses, then chances are high that you are losing many of those Euro longs.

Hence it is usually better to spread the risk and choose a variety of currencies. You can opt to include some Euro pairs but also choose some non-Euro pairs to make your overall approach more balanced.

Selecting the best moving pairs depends on your strategy mix. Of course, if you are trading with a single strategy then this factor is irrelevant. But for those that trade multiple strategies, it is smart to analyze whether your strategies are not over-reliant on the same or correlated currency pairs.

Even though the strategies are different, there could be increased risk associated with trading the same pairs from a portfolio perspective. Selecting the best moving pairs depends on choosing tools and indicators.

The most important factor is that you gain experience with the tool and indicator or your choice. It is your knowledge, familiarity, and practice with it that gives you the edge.

However, for example, useful tools and indicators for selecting pairs could be Fibonacci, ATR, oscillators, trend lines, moving averages, etc.

Selecting the best moving pairs depends on your personal choice and preference. Your forex experience with currency pairs is very valid and you can use it for selecting pairs. Having a track record on how particular pair moves in conjunction with your strategy will help you identify the more profitable pairs.

Your choice also depends on the time available for analyzing, monitoring, trading and managing various currency pairs. You might discover that the currency pair you have added to your trade list is, in fact, one pair too much to handle. Each currency pair has its own particulars and characteristics. Some of them will go along more with you and your strategy than others. Selecting the best moving pairs depends on selecting pairs that a decent number of traders actually trade and which have decent spreads.

Although for instance, the currency pair GBPZAR could have a perfect setup according to your strategy, whether you would want to trade this pair is a question mark.

The best pairs are the majors and major crosses. Most traders want to stick to these pairs unless there is a specific reason to do trade others.

Which of the above factors is most important for YOU? Is there another factor that you consider when selecting the best pairs in forex? Let us know down below in the comments section! Winners Edge Trading was founded in and is working to create the most current and useful Forex information and training available on the internet. Latest posts by admin see all. Now Take your trading to the next level by taking our trading quiz to pinpoint your strengths and weaknesses.