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.
Believe me, the behavior of various currencies on the market isn't as different as it might seem at first glance. Most currencies' exchange rates are influenced by similar factors. Their behavior patterns are also largely similar.
At the same time, by focusing on one currency pair, you miss out on a lot of opportunities that could guarantee you profits.
For example, if you use a gap trading strategy, it's clear that you'll have more opportunities with five currency pairs than with one. And more open trades generally means more profit.
This rule also applies to other strategies that require waiting for the right moment to open a trade.
Technical capabilities of the trading platform
: This isn't even about technical capabilities, but rather about the trader's ease of use when using the maximum number of currency pairs.
The bottom currency pair display panel can display a maximum of 12 currency pairs in the visible area:
Monitoring all of them at once will be quite inconvenient, as you'll have to constantly switch between windows. Therefore, it's advisable to limit your selection to six preferred pairs.
It's best to choose the most liquid currencies with a small spread and good volatility.
