Forex is a market that stays opens to facilitate uninterrupted currency trading, and has the largest volume of the world’s business with people participating from all countries of the world every day. Also, Forex is the premier financial market which reflects the financial dynamics of world trade, and all the trade is a trade-off between the pairs of currencies from two different countries. When you want to invest on Forex you should know what are the best currency pairs to trade? The answer is not so simple and every trader could have his own opinion but the most important thing you should do is to take the time to analyse different currency pairs to determine which are the best Forex pairs to trade for your own strategy.
Forex trading is the market where you buy and sell currencies in pairs and to do that it is essential to know how much the currencies in the pair are worth in comparison. This relationship between currencies is what defines a pair. To find the pairs Forex has an international code that specifies the setup of currency pairs like: EUR/USD 1.23 this code means that one Euro is worth 1.23 Dollars. The strongest currency in terms of widely traded is for the size of the US economy, the US dollar and is the preferred reference in the in most currency exchange international transactions. Here is the list the pairs with high liquidity and the most used for trading but not necessarily the best Forex pairs to trade:
EUR/USD The euro and the U.S. dollar
GBP/USD The British pound sterling and the U.S. dollar
USD/JPY The U.S. dollar and the Japanese yen
USD/CHF The U.S. dollar and the Swiss franc
AUD/USD The Australian dollar and the U.S dollar
USD/CAD The U.S dollar and Canadian dollar
To identify the best Forex pairs to trade
The major currency pairs are correlated, that means that the two currencies price movement is the similar. For example, the EURUSD and the GBPUSD usually move in the same general direction, according to the experts the GPBUSD is probably a little more volatile than the EURUSD, but if the EURUSD has a clear obvious up or down trend you can assume that the GBPUSD will follow the same trend. Also the currency pairs are associated with their countries financial and political power in the international community. Those major currency pairs are the best currency pairs to trade in Forex? You cannot afirme that because traders lose or win money on the fluctuations and maybe it is better to trade with other currency pairs.
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