The most popular currency pairs on Forex and trading features
The most popular currency pairs are always characterized by a dynamic trend, which is what allows you to earn the greatest profit in a short period of time.
The second indicator that affects popularity is the size of the spread - the commission that the dealing center takes from each of your transactions when buying or selling currency.
The third point is the availability of ready-made strategies for the chosen trading instrument, because it is much easier to use someone else’s experience than to waste time creating your own trading system.
In addition, the time of trading and simply the personal preferences of the trader matter, some trade only at night, and some prefer the most predictable trading instruments, without sharp fluctuations in the exchange rate.
In order to choose the most suitable trading instrument, you must first conduct a brief analysis of popular currency pairs.
Analysis of the most popular currency pairs
EUR/USD is the leader among leaders, it is the euro/dollar that has the greatest liquidity and dynamism, the rate of this currency pair changes almost every second. This dynamic opens up wide opportunities for speculative trading.
The trend constantly changes its direction, the price jumps sharply up several points, or on the contrary falls by a hundred, here you can either earn a lot or safely lose your entire deposit.
The most attractive strategy for this currency pair is breakout trading, which allows you to make a profit due to a sharp change in the exchange rate.
The news trading strategy works great; several important events can happen in one day; your task is to track their output and catch the moment of entering the market.
An important role is played by the lowest spread size from 0.2 in the floating version and from 1 in the fixed version; you can find out the size of this indicator from your broker.
It is this popular currency pair that is used for scalping; its small spread can significantly reduce costs when trading large volumes.
In addition, this currency pair has been trading in a certain price range for several years, which allows traders to easily determine the state of the market.
USD/JPY – dollar/yen is more often used in medium- and long-term trading, this is due to a small commission for transferring positions to the next day. It is for this tool that a large number of trading advisors and robots have been developed that allow you to automate trading.
The currency pair rises sharply in price when the dollar strengthens or the Japanese yen depreciates, and becomes cheaper after the release of unfavorable reports on the American dollar.
When opening sell transactions, you should be especially careful, since if the yen strengthens excessively, currency interventions by the Bank of Japan are possible. At the same time, an entire strategy has been created based on these interventions, which is based on the fact that sooner or later the Bank of Japan will put up a large volume of currency for sale and this will collapse the market.
The main activity is observed during the Asian trading session, this is during the opening hours of the financial centers of Japan.
GBR/USD is included in the category of the most popular currency pairs; in terms of dynamics it can be compared with EUR/USD, this is due to the fact that the British pound reacts quite sensitively to all European news, so its rate sometimes moves almost parallel to the euro.
The pair has a small spread and can be used for trading on short time periods with the maximum possible lot.
When using strategies that involve rolling positions over to the next day, it is more preferable to open long positions (buy).
AUD/USD is a pretty good trading instrument that is ignored by novice traders. Its course is perfectly predictable and it is often possible to predict further price movements depending on the cost of gold or prices for agricultural products.
Very often it is used to make a profit on the difference from interest rates using the “carry trade” strategy, which allows you to make a profit even without an obvious change in rates.
Popular currency pairs take up more than 60% of the total trading volume on the Forex currency exchange, but this does not mean at all that you should trade these particular instruments; if you wish, you can choose a more suitable currency pair just for you.
Cryptocurrency currency pairs
Recently, it has also become possible to trade cryptocurrency on Forex using a trader’s usual terminal, which has significantly expanded the possibilities of earning money on this asset.
Particularly popular are:
- BTCUSD - Bitcoin
- XRPUSD - Ripple
- LTCUSD - Litecoin
- ETHUSD - Ethereum
- DASHUSD - Dash
Trading these assets on Forex is much more profitable than on specialized exchanges, since the commission amount for brokers is several times lower, and the speed of transaction execution is much higher.
If previously cryptocurrency pairs meant only instruments whose quoted currency was the US dollar, now pairs have begun to appear in which transactions can be carried out in euros.
Features of trading cryptocurrency pairs can be found here - https://time-forex.com/kriptovaluty/kriptovalutnye-pary
In general, more than 20 such assets are currently available in broker terminals; you can find out which broker trades cryptocurrency using the link - http://time-forex.com/kriptovaluty/brokery-kriptovalut