How many currency pairs should I use when trading Forex?
The primary objects of Forex trading are currency and cryptocurrency pairs, with up to 50 such assets currently available in the trader's terminal.
Therefore, traders often struggle to choose a currency pair, and even after making their choice, they often ask themselves: How many currency pairs should I use in my trading?
Some advise focusing on just one pair, while others recommend paying more attention to the market situation than the underlying asset.
We'll try to find a middle ground in this regard and thereby achieve efficiency.
First, it's important to clarify that we're not talking about the number of simultaneously open trades on different assets, but rather whether to focus on a single currency or trade multiple assets simultaneously.
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.
