What is the best forex pair to trade
The forex Market is made of hundreds and if possible, thousands of Currency pairs and Commodities to trade. There different Currencies of the countries of the world can be paired against one another and traded in the forex market so as to take an advantage of the level of Volatility and price fluctuations on the value of these Currencies in relationship to one another.
There is however no best Currency pair to trade for all traders. The fact is that there are some Currency pairs that behaves differently and some traders may choose to trade certain Currency pairs more often based on their likewise towards thw Currency pair or based on how good they are with trading such Currency pair and getting very good trading Profits from it.
There are however some Currency pairs that are more traded by forex traders than other Currency pairs. The EUR/USD is unarguably the most traded Currency pair in the forex market. Here is a list of the top six most traded Currency pairs
Top most traded Currency pairs
1. EUR/USD
2. USD/JPY
3. GBP/USD
4. AUD/USD
5. USD/CAD
6. USD/CNY
The currency pair chosen for trade by the trader can based on the Volatility of the currency pair or how stable the Currency pair is and what trading section of the market the trader makes his trades.
The traders can trade the major Currency pairs which are the currency pairs that are the most traded Currency pairs and they mainly carries the USD in the pair e.g. EUR/USD and GBP/USD or they can trade the cross Currency pairs which do not carry the USD in the pair but still have good level of recognition and Volatility, e.g EUR/GBP and EUR/JPY
Statistics of most traded Currency pairs is shown in the image below
What is the best currency pair to trade in Forex market ?
There are three types of currency pairs in Forex market, which are :
Major currency pairs :
Refers to currency pairs that include the USD currency in one of its sides, which are :
- EUR/USD.
- GBP/USD.
- USD/JPY.
- USD/CHF.
- AUD/USD.
- USD/CAD.
- NZD/USD.
Minor currency pairs :
Refers to currency pairs that doesn't include the USD currency but include the EUR or the JPY currency in one of its sides, except the GBP/CAD pair, and the minor currency pairs are :
- EUR/GBP.
- EUR/AUD.
- GBP/JPY.
- CHF/JPY.
- NZD/JPY.
- GBP/CAD.
Exotic currency pairs :
Refers to currency pairs that include major currencies beside a currency belong to one of the developing economies, which are :
- EUR/TRY.
- USD/HKD.
- JPY/NOK.
- NZD/SGD.
- GBP/ZAR.
- AUD/MXN.
What is the best types of currency pairs to trade in Forex market ?
For me, i like to use the major currency pairs in the trading because the major currency pairs include currencies belong to the biggest economics in he world, making them the most trades currencies in the Forex market. in addition to that, most of Forex brokers provide the lowest spread and commission on the major currency pairs to their clients. And this makes us use these currency pairs in the trading without inuring any high fees or costs during the trading. Also we can determine price trend of most of major currency pairs easily via making good technical analysis to them, because these currency pairs don't have big fluctuations like other currency pairs. But when it comes to the major currency pairs like the GBP/JPY pair, it is very hard to make good technical analysis to it, because it always has very high volatility and its movements may exceed 500 pips in very short time. so, the best is to concentrate on the major currency pairs. And after your experience and knowledge increase step by step in the Forex market, you can try the minor currency pairs. But it is better of you avoided the trading in the exotic currency pairs.
In the forex trading market, there are various currency pairs you can choose from, and every pair can generate profit for all you need is having a good for analysis.
Before you choose a currency pair in the market, it's mandatory you know about three things such as
(1) Volatility: this is how fast the price of trading pairs changes in the market.
(2) liquidity; this is the demand for a currency pair, it's how easy it's to exchange a currency pair for another.
(3)The type of pairs (major pairs, minor pairs exotic pair)
(4) The currency spread: this is the difference between bid and cross pairs but also the commission of the brokers, spread are calculated in pips, for instance, if the asking price of gbpusd is. 13367 the bid spread will be 13370 being a major pair.
By understanding all the above you are in a good position on how to choose which pairs you wish to trade on.
In the market there are some currency pairs that don't have good volatility trading on these pairs can boring for day traders example are. Some of the cross pairs which lack liquidity.
Which are the best currency pairs to trade within the market? The major pairs :example are Gbpusd, eurusd, usdjpy, usdcad, usdjpy, etc.
These pairs have the cheapest spread in the market because there are most traded pairs. So ideally they are the best currency pairs.
You can can also look to trade some minor currency pair such as Eurjpy, eurgbp, Gbpjpy, etc. This pairs too has good volatility.
Meanwhile, you can choose to trade any pairs, so far you see a good trading opportunity with the assistance of a good strategy.
There are different currency pairs to be traded in forex market. There are majors, minors and exotic pairs. Every trader have his or her preference based on reasons best known to them. There is no currency pair that retain the title of the “best.” What is best for you may not be the best for another.
Brief explanation different types of currency pairs.
1. Majors.
The majors are the most traded currencies in forex market. The currencies that are known as major currencies are as listed below:
USD (United State dollar)
EUR (Euro) example, EUR/USD
GBP (Great Britain Pounds) Example, GBP/USD
JPY (Japanese Yen) Example, USDJPY
CAD (Canadian Dollar) Example, USD/CAD
AUD (Australian Dollar). Example, AUD/USD
NZD (New Zealand Dollar). Example, NZD/USD
CHF (Switzerland Franc). Example, USD/CHF
2. Minors
Currencies that falls under minors are also well traded but not as majors. Example are EUR/GBP, CHF/JPY, GBP/CAD.
3. Exotic pairs.
These are currencies of emerging market. The Exotic pairs are combination of the currencies of developed economy and currencies of emerging markets. Examples are, USD/HKD (United State dollar/ Hong Kong Dollar), USD/ZAR (United State Dollar/South African Rand)
Note, for some good reasons, among the major pairs the USD is listed on each side of the major currency pairs. This is because the United State dollar is the most traded currency in forex market and also the world largest reserved currency.
The best of them all
The word “best” is relative. Some traders are comfortable trading USD pairs because their spread is very low, while some others will prefer GBP pairs because they are very volatile. It all depends on your strategy and your style of trading. For example, most scalpers prefers scalping with EURUSD because it has the lowest spread in the market.
What is the best pair to trade on your trading platform?
What is your favorite husband from your point of view
The fact is that there are some Currency pairs that behaves differently and some traders may choose to trade certain Currency pairs more often based on their likewise towards thw Currency pair or based on how good they are with trading such Currency pair and getting very good trading Profits from it.
There are however some Currency pairs that are more traded by forex traders than other Currency pairs.most of Forex brokers provide the lowest spread and commission on the major currency pairs to their clients. And this makes us use these currency pairs in the trading without inuring any high fees or costs during the trading. Also we can determine price trend of most of major currency pairs easily via making good technical analysis to them, because these currency pairs don't have big fluctuationsNote, for some good reasons, among the major pairs the USD is listed on each side of the major currency pairs. This is because the United State dollar is the most traded currency in forex market and also the world largest reserved currency.
Best Currency Pairs in The Forex Market.
Sometimes it is very difficult to make a choice of what we want to trade in the forex market, there are different currency pairs from which you can select from depending on our personality and what we hope to accomplish from trading, we have the major currency pairs, the minor currency pairs, and lastly the exotic currency pairs. Each of the above categories have their advantages and disadvantages,it is left for you to select which one of them suits your style of trading and then be able to make profit from it at the end of the day which is why we're in the market.
Some Factors that can Influence your choice of a Currency Pair.
1. Volatility.
Volatility is one of the factors that can influence the choice of a currency pair by traders,many people will not engage in any currency that does not have a great level of movement, by default, pairs that are based on Great British pounds usually have a very high rate of volatility, this could be one of the most important things that some traders consider.
2. Spread.
There are some currency pairs in the foreign exchange market that have a very low spread, this could be another reason why traders will choose them over others,if the spread of the currency you are hoping to trade is very high there is a possibility that the potential profits you could get from that pair will be small, this is why some traders prefer pairs that don't have high spread.
3. Trading Strategy.
The trading strategy that you are using could actually be another great influence on the currency pair that you choose,there are some strategies that works well with certain currency pairs in the forex market.
The best pair on any trading platform is the one that the trader is comfortable trading with. In the trading platform of any forex broker there is a lot of currency pair that you can trade from. There is a set of major pairs, minor pair, exotic pair, metals, energy, crypto, index and others. There is a lot of instruments in all of those sets. The condition for each instrument is also different depending on several things. The major pairs for example, is full of currency pairs that are very liquid around the clock and because of this the spread of the pairs is very tight and sometimes it is zero pips (in the case of commission-based trading account). These liquid currency pairs are the most traded currency pair in the world because they are the world’s most used currencies in the financial world and world economy. The size of the country’s economy is also taken into consideration and that is why the pair EURUSD is the most liquid because the size of both economies are very big compared to the other currency pairs like USDTRY or USDTHB.
That is why the best currency pair can not simply be determined like clothing size where there is one size fits all. Some traders prefer to trade with the most liquid currency pair only because they want a pair where they can get the most cheap transaction cost and the least risky in terms of political turmoil. The pairs include EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, USDCHF. Some other traders like pairs that travel a lot like the GBP pairs and this includes currency pairs such as GBPUSD, GBPJPY, GBPAUD, GBPCAD, GBPNZD, GBPCHF. Some group of trader like currency pairs that are very hectic like the ones from the exotic currency pair set. In this group you can find currencies like USDHUF, USDPLN, USDSEK, USDDKK and many others. There are also traders who prefer to trade other trading instruments like Crude Oil, Gold, E-mini S&P 500, DAX, N225, Bitcoin etc. In short, people will trade using the instrument that they prefer. The instrument that is suitable to one person does not mean it will also be suitable for other people.
You only need to read THIS ARTICLE to make money from forex trading,
The main essence of trading forex is to make profits and most importantly the profit should be consistent. This involves buying and selling of different currency pairs at different point in time. Making profits requires that one should have adequate knowledge of the business
Having adequate knowledge is not enough but effective application is very essential. Therefore one needs to have an established understanding f technical analysis, fundamental analysis, and market psychology
The knowledge of all these should be used to develop a personal strategy which after being practiced proves to be of capability to deliver 7 winning trades out of every 10 trades
Having this kind of strategy is good, but may not be enough to ensure success. One needs to have a sound mind, ability to control emotions, discipline, and determination to succeed
With all these in place, it does not matter what pair (or pairs) one is trading but it is advisable to practice with a pair that one feels that he or she is comfortable with. In short, the one that responds best to one’s strategy and personality. There are many pairs on the platform of Instaforex Company but one needs to choose one or ones that are considered to be the best or that yield optimum easily for him or her.
In my case, I am very comfortable with GBP/USD (cable) because of its moderate spread and moderate volatility on Instaforex trading platform. Every trader should decide on what is best for him or her.
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. Most often, ignoring the other instruments, traders open positions on all known EUR/USD and GBP/USD, which are the most traded currency pairs in the world. 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?
Let’s start with the fact that depending on the fundamental characteristics, currency pairs are divided into 3 groups:
1. Major currency pairs (Majors) or top traded currency pairs, i.e. pairs that include the U.S. dollar and the currency of one of the most significant and economically developed countries (groups of countries): EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD, USD/CHF, USD/CAD (together they account for more than 70% of the total turnover of the Forex market). The top currency pairs are characterized with the highest liquidity of transactions, global popularity and a huge number of players.
If pairs were handed an Oscar, then EUR/USD which is most traded currency in the world would have won at least three nominations and would have taken home the award for “highest trading volumes”, “worldwide popularity” and “the lowest spread”. By the way, the prize of spectator sympathies, no doubt, would also have been accrued to it. Euro/dollar (EUR/USD) is the most liquid pair in Forex. 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.
Trading EUR/USD, the trader receives a range of benefits, which include:
High liquidity of the instrument, which determines the favorable conditions of conclusion of transactions. In addition, due to the liquidity, Euro/dollar pair is one of the most predictable currency pairs of Forex – price dynamics can be predicted using technical analysis indicators
There are however a few foreign money pairs which are greater traded by means of foreign exchange buyers than other foreign money pairs.maximum of forex brokers provide the bottom spread and commission on the essential forex pairs to their clients. And this makes us use those currency pairs inside the trading without inuring any excessive charges or fees at some point of the buying and selling. additionally we will determine charge fashion of maximum of predominant forex pairs effortlessly through making properly technical analysis to them, due to the fact these currency pairs do not have large fluctuationsNote, for some suitable motives, among the principal pairs the USD is indexed on each side of the main forex pairs. this is because the United nation dollar is the most traded foreign money in foreign exchange market and also the arena biggest reserved foreign money.
For me, i really like to apply the foremost currency pairs within the trading due to the fact the predominant currency pairs include currencies belong to the largest economics in he world, making them the most trades currencies within the forex market. in addition to that, most of foreign exchange brokers provide the lowest unfold and fee on the main foreign money pairs to their customers. And this makes us use those foreign money pairs in the buying and selling with out inuring any high fees or fees throughout the buying and selling. additionally we will decide rate fashion of maximum of main currency pairs without problems via making exact technical evaluation to them, due to the fact those forex pairs do not have massive fluctuations like other forex pairs. however in relation to the essential forex pairs like the GBP/JPY pair, it's miles very tough to make excellent technical evaluation to it, as it constantly has very high volatility and its movements may additionally exceed 500 pips in very quick time. so, the first-rate is to pay attention at the major currency pairs. And after your revel in and know-how growth step by step inside the forex marketplace, you could attempt the minor foreign money pairs. but it is higher of you prevented the trading in the exotic foreign money pairs.
I hope that all the members of the forum will be perfectly well. A good question has been asked ,Which is the best currcy pair for trade?
Every trader loves his favorite currency Pair for trade.
EURUSD is best pair for trade . EURUSD trad 2019.(23%).
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