Currency pairs.
Choosing the right trading instrument directly impacts your trading results, but it's also important to remember that each currency pair has its own unique characteristics that require careful consideration. The "Currency Pairs" section is dedicated to describing these characteristics.
Types of currency pairs
Not all Forex profit instruments are created equal. Currency pairs can be roughly divided into three groups, each
with its own characteristics.
Knowing these allows you to choose the trading instrument that best suits your needs and perfectly fits your strategy.
Forex currency pairs are categorized based on their popularity and spread size—these two parameters play a decisive role.
Group 1, the most popular.
The leaders in forex trading volumes are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and USD/CAD.
EURJPY trading.
Most traders prefer to trade the Yen using the US dollar, but some prefer
the EURJPY currency pair.
The main reason for this preference is the trading time: trading during the European Forex session allows for greater profits on this instrument.
The EURJPY pair is a cross-currency pair, which makes trading it somewhat challenging, but it doesn't stop most traders, who love it because of its low spread and good trading dynamics.
GBPUSD pair.
The British pound has always been and remains a rather unique currency. Firstly, it is the world's most valuable currency,
enjoying widespread popularity in transactions between financial institutions, and secondly, it is a rather unpredictable trading instrument.
It is traded on the exchange against the US dollar, which is the most popular option and ranks third in forex trading volume.
The GBPUSD currency pair is the most popular among traders in England and other European countries, and American stock market players also enjoy trading it. In total, GBPUSD accounts for approximately 12% of all transactions on the foreign exchange market.
Currency pair EURAUD.
Another popular trading pair is the EURAUD, which combines the euro and the Australian dollar.
The differences between these two currencies provide a wide range of options for using a variety of forex trading strategies.
This means excellent profit opportunities, provided you understand some of the specifics of this currency pair's behavior.
As noted, the EURAUD pair is formed by two currencies: the euro and the Australian dollar. These currencies trade in different forex trading sessions: the main events for the euro occur during the European session, during the day Moscow time, while the main events for the Australian dollar occur during the Asian session, at night Moscow time.
Currency pair USDRUB.
This instrument has only recently appeared on brokers' menus, but despite this, USDRUB is gradually gaining
popularity.
This is because many traders find it easier to work with a ruble account and avoid the hassle of currency conversion. Furthermore, conducting fundamental analysis in your own currency is much easier than tracking foreign news.
Even a novice trader can profit from the USDRUB pair. The key is to recognize the signal to open a trade in time and analyze the information received.
Features of AUDUSD trading.
Trading the Australian dollar is deservedly popular among a certain segment of currency traders, a fact
based on certain characteristics of the Australian dollar.
The AUDUSD currency pair is the best combination for this type of trading. Its two currencies are virtually unrelated, with their exchange rates influenced by completely different factors.
This gives it a highly dynamic movement and allows for fairly accurate trend forecasting , with both technical and fundamental analysis serving as the primary tools.
Currency pair USDCAD.
Another common tool used for making money on Forex, it is interesting for trading because the economies of the US and Canada
are quite closely interrelated, and some factors have completely opposite effects on the currencies of these countries.
The USDCAD currency pair is ideal for both professional and novice traders. Its accessibility stems from the ability to utilize fundamental analysis and its close correlation with several other exchange-traded instruments.
Effective trading requires understanding some of the specific behavioral characteristics of this currency pair, which we'll discuss below.
Currency pair GBPJPY.
Despite its weakening position, the British pound remains popular for settlements between
financial institutions and is also actively used in speculative forex trading.
It makes an excellent pair with the Japanese yen. Due to the different factors affecting these currencies, this trading instrument enjoys quite high movement rates, opening up ample opportunities for profit.
GBPJPY is both a profitable and risky 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 instrument, as it is formed by
the world's most popular and most stable currencies.
This combination makes price action quite predictable and opens up ample opportunities for playing the exchange rate.
The price of the US dollar fluctuates primarily, which directly influences the direction of the USDCHF trend. When the dollar rises, the pair also rises, while when the dollar falls, a downward trend can be observed.
USDJPY pair.
Trading the Japanese Yen has long been a favorite among many traders, and
the USDJPY currency pair is the optimal trading instrument.
The combination of the US dollar and the Japanese Yen allows for the development of an effective Forex trading strategy.
USDJPY is a rather dynamic instrument, the reason for this is the unstable exchange rate of the dollar and the even more unstable Yen.
Characteristics:
The base currency here is the US dollar, which is used to calculate trading volumes; one lot in this case is equal to 100,000 US dollars.
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