Forex Currencies: The Best Currency Pairs To Trade

People starting out in currency trading often do not realize how many trading opportunities forex market offers. It can seem overwhelming to think that you can trade any combination of the world’s currencies.

Theoretically at least, a trader can deal in any currency pair: that is, any two of the 150 or so currencies of the world. Almost all countries have their own currency except for the European countries who are part of the euro system and a few small nations who use the US dollar. There are other countries whose currencies are pegged to the dollar to give them some economic stability. Still, there are a lot of currencies out there, and in combination that makes a huge number of forex pairs.

In practice of course there are limits on the currency pairs that an individual trader can access. Most brokers will only let you deal with certain pairs, or if they quote prices on unusual pairs then the spread will be high so you have a higher threshold to beat before you start making money. If you want to trade in a minor currency it is often best to do so through a broker who is based in that country.

However, for most traders this is not even an issue. The average forex retail trader (that is, somebody trading on their own account, often from home) would not touch most minor currencies because they are too volatile. For anybody starting out, certainly the best option is to stick with the major currencies.

So which forex currencies would be described as major? There can be some debate about this but most sources count 7 major currencies in order of their traded volume. They are: US dollar USD, euro EUR, Japanese yen JPY, British pound GBP, Swiss franc CHF, Canadian dollar CAD and Australian dollar AUD.

Major pairs are defined as pairs of the US dollar with any other major currency. This creates 6 major pairs which are EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD and AUD/USD. Pairs of two major currencies where neither one is the US dollar are called cross pairs. This gives another 30 possible pairs. An example would be GBP/CHF.

The most heavily traded pair of forex currencies is EUR/USD. The high liquidity of EUR/USD has three main advantages. First, you will not have trouble getting matched including having stop losses matched at the planned point without a lot of slippage. Second, the spread tends to be low because competition between brokers is intense for this pair. Third, there is a ton of forex news relating to these two currencies and you are much less likely to miss some important announcement.

With all of these factors coming into play, the recommendation for beginners is to keep to one pair and make it the biggest, EUR/USD. That is if you are trading for yourself. If you are using a robot, it may be set up for other forex currencies and you should go with the recommended pairs.

There are many Forex robots on the market. The most frequently used is

Fap Turbo Robot