Forex market is open during the working week, where worldwide traders participate in trading currency pairs of two different countries. It is a system that allows the exchange of diverse currencies from across the globe to trade. New investors can find the number of economical instruments available to trade via MT4 terminal on the ADSS trading platform confusing.
They wonder which is the best pair to trade. First new traders need to get familiar with Forex Trading Online via practicing on free demo accounts. They will need to analyze different plans based on their personal trading strategy. In this way, they will determine their best trading currency pairs.
The currency pairs comprise abbreviations and the value of the base currency is listed first. It defines the quote currency listed second. For example, quote EUR/USD 1.25 means 1 EURO = $1.25 US Dollars. EUR is the base currency and the counter currency is a dollar.
Which is FX major pairs?
The strongest and dominant pair that is widely transacted is the US Dollar. The basic reason for its popularity is the US economy’s large size. Actually, there is no such list as major currency pairs. People discuss majors that are actively traded and most liquid. It does not mean they are best but are commonly traded.
Common majors are –
Manor currencies are volatile because the trade volumes between the two countries keep constantly changing. The pairs are connected with countries having great financial power and conducting trade in high volume worldwide.
The price fluctuations can be the largest! Are they the best? Not necessarily, traders can profit and even lose on the fluctuations. Major currencies mentioned above have the best trading conditions because their spreads are low, but still, it does not define them to be the greatest FX pairs for every trader.
If you desire to become a successful FX trader then understand the different currency pairs in-depth.
- EUR/USD – It has the lowest spread and is connected with technical analysis. It is not very volatile, so traders who wish to avoid a lot of risks can find this a great option.
- GBP/USD – It has grown popular because of profitable pips. Remember high profits accompany huge risks. It is a highly volatile currency pair but traders prefer it as there is a lot of market information available on the internet.
- USD/JPY – It offers low spreads and follows a smooth trend. Besides, it has the capability to offer profitable opportunities for traders.
Trading experts recommend going for spreads around 0-3 pips. If it surpasses 6 pips, the trade turns expensive and can cause huge losses. This does not mean you need to avoid high spread. Exercise risk management properly and trade smartly to lessen trading risks as much as possible.
Minor FX pairs
Minor Forex pairs have wide spreads and low liquidity. Examples of minor currency pairs with sufficient liquidity are –
Exotic FX pairs
Exotic pairs are currencies from developing economies and are least liquid but even have large spreads. Exotic pairs example includes –
To learn trading skills using a Forex Demo Account takes time, patience, discipline, and passion. ADSS is the best brokerage platform that helps customers to hone their technical analysis skills using tools and resources made available.