Forex92
New member
What currency pairs to trade on the Forex market? Some of them trade all currency pairings in the trading terminal, which is improper. The best currency pairs to trade for novices and those to avoid are discussed today.
A Currency Pair
According to ISO 4217, each currency can be shortened to three letters. This standard chooses the first two letters of the currency abbreviation and the last letter of the currency denomination. For example, the US dollar USD is made up of the country's initials USA and the currency's name Dollar. But there are exceptions. For example, the Mexican peso (MXN). MX stands for Mexico, but N stands for the currency's name.
A currency pair is made up of two currencies that represent the market's price ratio, or exchange rate. Buying one currency on Forex means selling another. The base currency is the first in the pair, while the quoted currency is the second.
In the EURUSD currency pair, the euro is the base currency and the US dollar is the quoted currency. The EURUSD rate displays how many dollars 1 euro buys. By buying EURUSD, you buy euros by paying in dollars. With a sell order, you sell euros and receive dollars.
Currency Pairs Types
Currency pairs are classified as major, minor (cross-currency), and exotic. The most liquid currency pairs account for about 80% of trade volume on the foreign exchange market:
Due to their illiquidity, exotic currency pairs have huge spreads. Sveriges Riksdag (Sweden) vs. Riksdag (Norway)
Beginner Currency Pairs
I advise new traders to trade just large currency pairings because they have a low spread and are easy to evaluate and predict. Initially, it is best to concentrate on two or three currency pairs rather than being showered on all. If something goes wrong, you may promptly close the purchase and your deposit is protected from small drawdowns.
With practise, you can connect cross-currency pairs like EURJPY, GBPJPY, and EURGBP, but keep in mind that their high spread makes them unsuitable for scalping.
I advise against trading exotic currency pairs. They are for seasoned traders. Their spread and swap are higher. They can only be traded for informative purposes or during a long-term price movement.
This is a list of the finest currency pairings to trade for beginners and experienced traders.
A Currency Pair
According to ISO 4217, each currency can be shortened to three letters. This standard chooses the first two letters of the currency abbreviation and the last letter of the currency denomination. For example, the US dollar USD is made up of the country's initials USA and the currency's name Dollar. But there are exceptions. For example, the Mexican peso (MXN). MX stands for Mexico, but N stands for the currency's name.
A currency pair is made up of two currencies that represent the market's price ratio, or exchange rate. Buying one currency on Forex means selling another. The base currency is the first in the pair, while the quoted currency is the second.
In the EURUSD currency pair, the euro is the base currency and the US dollar is the quoted currency. The EURUSD rate displays how many dollars 1 euro buys. By buying EURUSD, you buy euros by paying in dollars. With a sell order, you sell euros and receive dollars.
Currency Pairs Types
Currency pairs are classified as major, minor (cross-currency), and exotic. The most liquid currency pairs account for about 80% of trade volume on the foreign exchange market:
- EURUSD;
- USDJPY;
- GBPUSD;
- AUDUSD;
- USDCHF;
- NZDUSD;
- USDCAD.
Due to their illiquidity, exotic currency pairs have huge spreads. Sveriges Riksdag (Sweden) vs. Riksdag (Norway)
- EURGBP;
- EURAUD;
- GBPJPY;
- CHFJPY;
- NZDJPY;
- GBPCAD;
- EURJPY;
- CADJPY;
- EURCAD;
- GBPCHF.
Beginner Currency Pairs
I advise new traders to trade just large currency pairings because they have a low spread and are easy to evaluate and predict. Initially, it is best to concentrate on two or three currency pairs rather than being showered on all. If something goes wrong, you may promptly close the purchase and your deposit is protected from small drawdowns.
With practise, you can connect cross-currency pairs like EURJPY, GBPJPY, and EURGBP, but keep in mind that their high spread makes them unsuitable for scalping.
I advise against trading exotic currency pairs. They are for seasoned traders. Their spread and swap are higher. They can only be traded for informative purposes or during a long-term price movement.
This is a list of the finest currency pairings to trade for beginners and experienced traders.
