Which pair of currency is best traded in forex

Which pair of currency is best traded in forex

12 Best Currency Pairs to Trade in Forex for Beginners,The Most Traded Currency Pairs

08/10/ · The eight major currency pairs are EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, GBP/JPY, EUR/JPY, and USD/CAD. Due to their high liquidity, major currency Here is a simple example of how it works: let’s take GBP/USD as one of the most traded currency pairs in the forex market. The "GBP" symbol is the abbreviation for the British pound sterling, 05/07/ · The four most popular and best currency pairs to trade in the forex market are: EUR/USD (Euro/US dollar) USD/JPY (US dollar/Japanese yen) GBP/USD (British pound/US So, what are the best currency pairs to trade? The most popular currencies that are traded in the world are: US dollar Australian dollar Canadian dollar British pound Euro Swiss franc Here is a list of some of the more commonly traded exotics: USD/TRY – U.S. dollar vs. the Turkish lira EUR/TRY – Euro vs. the Turkish lira USD/ZAR – U.S. dollar vs. the South African ... read more

The top 10 most popular currency pairs include the Major ones and several Cross currency pairs. The full list of top traded currency pairs, as well as their approximate trading volume, is available in the following table:.

The Deutsche Mark was the second-largest reserve currency in the world at the time, which attracted traders' interest.

First of all, actively traded pairs have high liquidity. Since more people are interested in an asset, the easier it is to buy and sell. High currency pair liquidity , in turn, enables trades with lower commission costs. The traders call them the trading conditions. Here we should also mention clearer candlestick chart formation without gaps. It significantly influences the accuracy of the readings of all indicator kinds.

In addition to the trading conditions, the popularity of a currency pair also affects its informational visibility :. It is often argued that the top traded pairs are also the most predictable ones. However, this fact is not supported and is based mainly on guesses. Each line on the chart represents the activity of a specific currency pair, i. Install the trading session indicator directly in MT4.

Each list has its first and last number. However, things aren't that simple when it comes to currency pairs.

To date, there are about different currency names in the world. So, the number of possible currency pair combinations is 16, We can also say the same for hundreds of other extremely exotic pairs. You will see one or two currencies in almost every famous currency pair from this list. For any trader who wants to be a successful Forex trader, they must aim for a deeper understanding of the currencies they intend to trade.

We have discussed below some of the currency pairs. Read about them for more straightforward trading solutions.

This is the most popular Forex pair for trading. One of the best benefits of trading this pair is low spreads. Most traders employ technical analysis rather than fundamental analysis. This currency pair is not too volatile. If you want to do risk aversion trading, this currency pair will be the best fit for you.

Another advantage of trading a popular pair like this one is that you can find a lot of information, and in Forex, you can never have enough information.

Possible large jumps and profitable pips have added to the popularity of this currency pair. This pair, however, is not the right fit for those who wish to avoid the risk.

As this pair allows you to make higher profits, you need to be prepared for risks. With the help of market analysis, you can take advantage of this pair. This is yet another pair of currencies that see a huge volume in the number of transactions every day. You will get low spreads for this pair. You will witness a smooth trend with this pair as compared to the other. It offers several profitable opportunities to traders and investors.

To make more profits, it is better to go for lower spreads and avoid higher spreads. Of course, the best time to trade USDJPY is during the USD trading session.

We have already read about the most popular currency pairs and saw that they all include the currencies that are heavily traded daily.

There are some other pairs known as cross-currency or minor pairs, which do not include these popular currencies, specifically the US dollar. The downside to these pairs is the lack of sufficient liquidity and wider spreads. Still, the liquidity is sufficient enough to make them tradable. Some of these currency pairs are:. In addition to these minor, there are some exotic pairs as well. These pairs include currencies of emerging economies.

These are the least liquid pairs, and the spreads are the largest. Some of these exotic pairs are:. To be a master at anything, you need to upskill yourself every day. In Forex trading, this can be done by keeping yourself educated at all times. One needs to be disciplined and patient to see good results. A good trading strategy in the Forex market is based on either fundamental analysis or technical analysis. When we are trading currencies, we need to understand that they are not your generic commodities or assets.

The strength of a currency and the economic strength of its respective country always go hand in hand. Fundamental analysis is based on this principle. A trader who forms strategies based on fundamental analysis will always follow news related to these factors. This is done to predict future price movements. Every transaction now happens virtually; therefore, you must be using a reliable and safe trading platform.

Your trading platform has the potential of interfering with your trades. Imagine devising an entire strategy only to see your platform getting hung up in the middle of the trade! It is highly recommended to look for a regulated broker who offers a user-friendly and efficient trading platform to you.

The most popular among these platforms are the MetaTrader ones, with MT4 and MT5 being at the top of the list. These platforms are available worldwide and come with several tools and indicators that can make trading smoother for you. Some popular currency pairs are easier to trade. This is because they are well-explored as compared to their contemporaries. If you want to be at the top of the game, accept that you cannot create a good Forex strategy without understanding the importance of economic announcements released by the countries.

These announcements can affect the value of a currency. Therefore, you need a good Forex calendar that allows you to keep track of every important news piece. When you are starting your journey, look for a regulated broker. Ask them for a demo account. This will allow you to check their overall services. You can see how prompt the customer service is and if the platform is user-friendly or not.

It will also allow you to experience real-time trading without actually investing any real money. The last advice applies to tradings types; when you are a beginner, start with small investments and be patient. Forex trading is all about a good strategy and discipline. In the long run, these two help investors and traders more than the actual capital investment. Begin with a small sum, and once you start understanding the market and its various aspects, you can make further investments.

Remember, good things come to those who wait. Privacy Policy. Home Choose a broker Best Forex Brokers Learn trading Affiliate Contact About us. Home » Education » Finance education » The Best Currency Pairs to Trade. Forex Trading and Beginners. Author Recent Posts. Trader since Currently work for several prop trading companies. Latest posts by Fxigor see all.

Name a market that never closes during the working week, has the largest volume of the world's business, with people from every country of the world participating every day. Yes, you guessed right — the Foreign Exchange Market Forex , where all trade is between currency pairs of two different countries. This is called Forex currency trading. What are the best currency pairs to trade in Forex?

This article will explore the answer to this question to help you find the best currency pair to trade for your personal trading style and preferences. The famous phrase 'money never sleeps' — coined by the well known Hollywood movie 'Wall Street' — sums up the foreign currency exchange market perfectly.

The Forex market is open for trading from GMT on Sundays until GMT on Fridays. Therefore, during the week you can trade the Forex market 24 hours a day! When you are a beginner Forex trader, you may find yourself overwhelmed and confused by the sheer number of currencies and other instruments available to trade through the MetaTrader 5 trading terminal. What are the best currency pairs to trade? The answer is not straightforward, as it varies with each trader.

You need to take the time to analyse different pairs against your own trading strategy and, in doing so, determine which are the best currencies to trade on your own Forex account. This article will briefly describe what currency pairs are, and will assist you in identifying the best Forex pairs to trade. It will also explain what Forex majors are and whether they will work for you.

With this information, you won't need to search Forex currency trading for Yahoo Finance. Forex trading — or foreign exchange trading — is all about buying and selling currencies in pairs. To be able to buy and sell currencies effectively, you need to have information about how much each currency in a pair is worth in relation to each other. This relationship is what defines a currency pair.

A currency pair consists of two currency abbreviations, followed by the value of the "base" currency the first listed which is expressed in the "quote" currency the second listed. There is always an international code that specifies the setup of Forex pairs.

For example, a quote of EURUSD 1. Here, the base currency is the Euro EUR , and the counter currency is the US dollar. If you would like to learn more about how to read currency pairs, why not check out our article ' Understanding and Reading Forex Quotes ' which explores the topic in greater detail.

It's worth mentioning here that In the world of active trading, people engage in currency trading via the futures or Forex markets. I've just covered Forex currency trading on the Forex market, so I'll now briefly illustrate the difference between trading currency futures vs Forex with an explanation of currency futures.

Forex futures are a way people can trade their opinions on the economic prowess of different nations around the world. Forex futures represent the value of a foreign currency in U. dollars at a specified future point in time.

In contrast to trading currencies on the forex markets, Forex futures are priced in the contract in U. dollars per unit of the foreign currency being dealt with and they have a specified expiration date. In this article, I will focus on trading currency pairs on Forex markets. Do you want to learn Forex currency trading online?

If so, it will help to learn what the major and minor currency pairs are first. Not surprisingly, the most dominant and strongest currency, as well as the most widely traded, is the US dollar. The reason for this is simply the sheer size of the US economy, which is the world's largest. The US dollar is the preferred reference in most currency exchange transactions worldwide and also the dominant reserve currency of the world.

There is no definite list when it comes to the major currency pairs, but when people talk of the majors, they are usually referring to those pairs which are most actively traded and, therefore, most liquid. However, this does not necessarily mean that they are the 'best' to trade. These majors generally include:. The values of these major currencies keep fluctuating according to each other, as trade volumes between the two countries change every minute. These pairs are naturally associated with countries that have greater financial power, and the countries with a high volume of trade conducted worldwide.

Generally, such pairs are the most volatile ones, meaning that the price fluctuations that occur during the day can be the largest.

Does this mean that they are the best ones to trade? Not necessarily, as traders can either lose, or make money on the fluctuations. The aforementioned pairs tend to have the best trading conditions, as their spreads tend to be lower, yet this still does not necessarily mean that the majors are the best Forex pairs to trade for every trader. Are you ready to start Forex trading?

Click the banner below to get started:. We'll now give you some Forex currency trading tips to help you decide which currency pairs to trade. With over countries in the world, you can find more than a handful of currencies to trade. However, these may not have the potential to deliver the best results. So, what is the best currency pair to trade?

What do most traders trade? Which is worth trading and why? Keep on reading this article to find out the answers to these questions and more. 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:. Out of these currencies, you can find a few popular currency pairs. If you want to achieve success in Forex trading, you need to have an in-depth understanding of the different Forex pairs that you use to trade.

If you select any of the options which we are going to discuss below, you will make trading much simpler for yourself, as lots of expert analytical advice and data is available on them. Therefore, if you are a trader who does not like being in the position of taking too much risk, this might be one of your best options for trading Forex. All the Forex majors that can be found are equipped with tight spreads. It is perhaps better to avoid those pairs which have high spreads.

The recommended spread by the trading experts tends to be around pips. When it exceeds 6 pips, trading may become too expensive, which can lead to greater losses. Still, it doesn't mean that you should totally avoid anything which has a high spread. The best way to trade sensibly and effectively in this regard would be to exercise proper risk management within your trading to help minimise the risks of trading. As we saw above, the major Forex pairs consist of the most heavily traded currencies and all include the US dollar.

Minor Forex pairs, also known as cross currency pairs, are pairs that do not include the US dollar. These pairs have wider spreads and less liquidity than the major pairs, however, they still have sufficient liquidity for trading.

Examples of minor pairs include:. Then there are the exotic currency pairs, which include the currencies from emerging economies. Exotic pairs are the least liquid and also tend to have the largest spreads. Examples of these exotic pairs include:.

If you're interested in trading these currencies but aren't ready to risk your funds yet on the live market, there's no better place to start than with a free access Admirals demo trading account.

Instead of heading straight to the live markets and putting your capital at risk, you can avoid the risk altogether and simply practice until you are ready to transition to live trading. Take control of your trading experience, click the banner below to open your demo account:.

Just like any other skill, becoming successful at trading takes time and plenty of practice. To master this skill you need to have a lot of patience, discipline, but most of all you need to be passionate about the industry.

Successful trading starts with having a trading plan that is based on either Technical or Fundamental analysis. Technical analysis looks at price charts of a financial instrument, using technical indicators or price action to attempt to predict future movements in price.

Whereas, fundamental analysis attempts to predict price movements based on macro economical data and news releases. There are many different ways you can learn currency trading online as there are a lot of different education providers.

To start learning for free with Admirals we suggest heading over to our "Forex Strategy" section in our Articles and Tutorials education portal to learn different trading strategies.

It's time to briefly detail the Forex trading sessions along with the currency pairs I have just discussed. Understanding the Forex trading sessions will also strengthen your trading strategy. The Forex markets are open 24 hours a day during the week, except on holidays.

However, the market isn't dominated by one market. Instead, there is a global network of brokers and exchanges and brokers around the world. The Forex trading hours are based on the market opening hours of each participating country. Although a hour Forex market offers many opportunities for both individual and institutional traders , since it guarantees liquidity and a reliable opportunity to enter and exit trades at any possible time within the Forex trading hours, it still has its pitfalls for traders.

While you can trade different currencies anytime you wish, you can't monitor your position for long periods of time. This means that there are Forex trading times in which traders miss opportunities, or worse, there is a spike in market volatility that leads the spot to move against a position when you're not nearby. To reduce such risks, you have to learn when the markets are most likely to be volatile, and therefore decide what times are best for their individual trading strategy and style.

If you look at these hours, you may notice that there is a pattern that generally follows: as one major Forex market closes, there is another one that has opened. There are specific times in which the markets are more active and times when they are less active. All traders need to keep track of the different levels of activity throughout the trading sessions.

Next, I'm going to briefly discuss these periods and the times that traders generally consider the best and worst times to trade. When there is low liquidity, which usually occurs when markets open, and at around 12am, there is substantial risk for trading.

Low liquidity can bring about higher volatility than traders see during common trading hours.

The Most Traded Currency Pairs in Forex (2022 Edition),Table of Contents

Here is a simple example of how it works: let’s take GBP/USD as one of the most traded currency pairs in the forex market. The "GBP" symbol is the abbreviation for the British pound sterling, 16/10/ · 12 best currency pairs to trade in Forex for beginners are: EUR/USD: Trading the “Fiber”. EUR/GBP: Trading the “Chunnel”. EUR/CHF: Trading the “Franky”. EUR/JPY: So, what are the best currency pairs to trade? The most popular currencies that are traded in the world are: US dollar Australian dollar Canadian dollar British pound Euro Swiss franc Which currency pair is most profitable in forex? In forex trading, EUR/USD, GBP/USD, and USD/JPY are considered highly profitable pairs. The reason is that they move more pips, have 05/07/ · The four most popular and best currency pairs to trade in the forex market are: EUR/USD (Euro/US dollar) USD/JPY (US dollar/Japanese yen) GBP/USD (British pound/US Here is a list of some of the more commonly traded exotics: USD/TRY – U.S. dollar vs. the Turkish lira EUR/TRY – Euro vs. the Turkish lira USD/ZAR – U.S. dollar vs. the South African ... read more

These aren't the greatest high-probability setups. And the reason is that the currencies are from North America so other parts of the world trade the pair less. Trading Platforms MetaTrader 5 MetaTrader 4 MetaTrader WebTrader Admirals Mobile App. The pound and the US dollar are reactive to global economic news. Then there are the exotic currency pairs, which include the currencies from emerging economies.

You will see one or two currencies in almost every famous currency pair from this list. A popular form of trading which you may be aware of is trading on Foreign exchange, or Foreign currency. When there is low liquidity, which usually occurs when markets open, and at around 12am, there is substantial risk which pair of currency is best traded in forex trading. There's not much to play with on this chart. Trade with a risk-free demo account Practise trading with virtual funds OPEN DEMO ACCOUNT. Currently work for several prop trading companies. Either of these setups is a high probability, especially on the daily chart.