Currency pairs.
The effectiveness of trading directly depends on the correctly chosen trading instrument, but in addition, you need to take into account that each currency pair has its own characteristics that you should pay attention to. The section “Currency pairs” is dedicated to the description of these features.
Types of currency pairs
Not all tools for making a profit on Forex are the same; conventionally, currency pairs can be divided into three groups, each of which
has its own characteristics.
Knowing them, you can choose the trading tool that best suits your needs and will fully suit your strategy.
Forex currency pairs are divided depending on their popularity and the size of the spread; these two parameters play a decisive role.
Group 1, the most popular.
So to speak, the leaders in Forex trading volumes are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, USD/CAD.
Trading EURJPY.
Most traders prefer to trade the Yen using the US dollar, but there is a category that prefers
the EURJPY currency pair.
The main reason why preference is given to EURJPY is the trading time; by trading during the European Forex session you can get more profit on this instrument.
The EURJPY pair is cross-currency, this aspect introduces some difficulties into its trading, but does not stop most traders; they love it because of the low spread and good movement dynamics.
GBPUSD pair.
The British pound was and remains a rather peculiar currency, first of all, it is the most expensive monetary unit in the world, which
is very popular in settlements between financial institutions, and secondly, it is a rather unpredictable trading tool.
On the exchange it is traded in combination with the US dollar, this is the most popular option and ranks third in terms of the volume of completed Forex transactions.
The GBPUSD currency pair is the most popular among traders in England and other European countries; American exchange players also trade it with pleasure; in total, about 12% of all transactions on the foreign exchange market are carried out in GBPUSD.
Currency pair EURAUD.
Another popular trading object is the EURAUD currency pair, which combines the euro and the Australian dollar.
The dissimilarity of these two currencies provides a large number of options for using a variety of Forex trading strategies.
This means excellent opportunities for earning money, the main thing is to know some of the behavior features of this currency pair.
As already noted, the EURAUD pair is formed by two currencies, the euro and the Australian dollar, the currencies belong to different forex trading sessions, the main events on the euro take place during the European session, during the day, Moscow time, and the main events on the Australian dollar at the Asian session, at night for us .
Currency pair USDRUB.
This instrument appeared on the menu of brokers not so long ago, but despite this, USDRUB is gradually gaining more and more
popularity.
This is due to the fact that many traders find it easier to work with a ruble account and do not bother with currency conversion; in addition, conducting fundamental analysis on their native currency is much easier than tracking foreign news.
The USDRUB pair allows even a novice trader to make money; the main thing is to recognize the signal to open a transaction in time and be able to analyze the information received.
Features of trading AUDUSD.
Trading the Australian dollar enjoys well-deserved popularity among a certain part of currency traders, this fact
is based on certain features of the Australian dollar.
The AUDUSD currency pair is the best combination for such trading; the two currencies included in it are practically unrelated to each other; their rates are influenced by completely different factors.
This gives it high dynamics of movement and allows for quite accurate trend forecasting , the main tools being both technical and fundamental analysis.
Currency pair USDCAD.
Another common tool used to make money on Forex, it is interesting for trading because the economies of the USA and Canada are
quite closely related, and some factors have completely opposite effects on the currencies of these countries.
The USDCAD currency pair is perfect for trading by both a professional and a novice trader; the reason for its accessibility is the ability to use fundamental analysis and close correlation with some other exchange instruments.
For effective trading, you need to know some features of the behavior of a given currency pair, we will talk about them below.
Currency pair GBPJPY.
The British pound, despite some weakening of its position, is still popular in settlements between
financial institutions, and is also actively involved in speculative trading on Forex.
It makes an excellent pair with the Japanese Yen; due to the difference in factors affecting these currencies, the trading instrument has quite high movement dynamics, which opens up wide opportunities for earning money.
GBPJPY is both a profitable and dangerous currency pair, so working with it is recommended for traders with some trading experience.
Currency pair USDCHF.
The USDCHF pair is a rather interesting trading tool, because it is formed by the most popular and most
stable world currencies.
This combination makes price behavior quite predictable and opens up wide opportunities for playing on the exchange rate.
Basically, the price of the American dollar changes, which has a direct impact on the direction of the trend in USDCHF; when the dollar rises, the pair also grows, and when the exchange rate declines, a downward trend can be observed.
USDJPY pair.
Trading the Japanese Yen has long been a favorite activity of many traders, and the optimal
trading instrument in this case is the USDJPY currency pair.
It is the combination of the American dollar and the Japanese Yen that allows you to develop an effective Forex trading strategy.
USDJPY is a rather dynamic instrument, the reason for this is the unstable dollar exchange rate and the even more unstable Yen.
Characteristic.
The base currency here is the US dollar, it is in it that the volumes of trade transactions are calculated, one lot in this case is equal to 100,000 US dollars.
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