How many currency pairs to use when trading Forex
The main objects of Forex trading are currency and crypto currency pairs; at the moment, up to 50 such assets are available in the trader’s terminal.
Therefore, the trader experiences difficulties in choosing a currency pair, but even after making a choice, he asks the question - How many currency pairs should he use in his trading?
Some advise focusing on only one pair, others even recommend paying more attention to the situation on the market, and not to the object of trade.
We will try to find a middle ground in this matter and, thanks to this, achieve work efficiency.
To begin with, it should be clarified that we are not talking about the number of simultaneously open transactions on different assets, but whether it is worth focusing on one currency or making several assets work at once.
Take my word for it, the behavior of different currencies on the market is not as different as it might seem at first glance; the rates of most currencies move under the influence of similar factors. The patterns of their behavior are also largely similar.
At the same time, by focusing on one currency pair, you lose a lot of opportunities, using which you can be guaranteed to make money.
For example, if you apply a gap trading strategy, it is clear that you will have more opportunities on five currency pairs than on one.
And more open trades usually mean more profit. A similar rule also applies to the use of other strategies in which you need to wait for the right moment to open a transaction.
Technical capabilities of the trading platform
Here we are not even talking about technical capabilities, but about the convenience of the trader when using the maximum number of currency pairs.
The bottom panel for displaying currency pairs can place a maximum of 12 currency pairs in the visible area:
It will be quite inconvenient to watch everyone at the same time; you will constantly have to switch between windows, so it is advisable to limit your choice to 6 pairs you like.
In this case, you should choose the most liquid currencies with a small spread and good volatility.