Selecting a currency pair.

When starting work on the Forex currency market, first of all, you should choose a trading instrument with which you will earn profit.

Each trader makes this choice based on his own criteria. For example, Americans and Japanese prefer to trade the currencies of their countries, or rather the pairs in which it is included; some pay attention only to the size of the spread, while others simply choose the most popular trading instruments.

The choice of a currency pair, based on generally accepted criteria, is based on the following indicators - liquidity, volatility, spread size, swap commission, availability of technical analysis tools and programs for automatic trading.

The main thing in this matter is that the instrument you choose matches your trading strategy.

Let's move on to analyzing the most important points.

• Liquidity – that is, how much demand a given trading instrument is in; simply put, this is the popularity of currency pairs. By using popular currency pairs, you can be protected from delays in the execution of orders, since your order will always find a counter one.

The size of the spread also depends on liquidity; the higher the liquidity, the lower the broker’s commission and vice versa. • Volatility in Forex is also a fairly significant indicator, because the more points a currency pair moves through in a day, the more significant your profit will be.

But some traders prefer, on the contrary, to work with calm trading instruments. • Spread size – this indicator is most important if you trade using scalping.

Since there is a maximum ratio of your own deposit to the trading volume and the weight of one point can be up to 5% of the trader’s deposit. For the most popular pairs, its size ranges from 0.3 to 5 points; such a difference can sometimes significantly affect the result of transactions.

• Swap – if you are trying to close all transactions within one day, you should not stop your attention at this point.

And if the planned duration of transactions is more than a day, then the swap commission may cost you a couple of dollars or, on the contrary, add a certain amount to the profit, depending on the currency pair and the direction of the transaction. • Advisors and indicators - as a rule, are written for the most used currency pairs, so if you want to use such programs, it is better to choose the most popular trading tools.

As you can see, it all comes down to trading popular currency pairs; they have the most favorable trading conditions and you can find the largest amount of necessary information on them. Therefore, it is best to choose from – USDJPY, USDCHF, USDCAD, GBPUSD, GBPJPY, EURUSD, EURJPY, AUDUSD.