Forex Trading- Forex simply means foreign exchange trading. It is all about buying and selling currencies in pairs. You need to have information about the currency in the pair that how much worth ful are they to each other. A currency pair quotes two currency contractions, followed by the values of the base currency which is based on the currency counter.
An international code is always there that specifies the setup of currency pairs. For an example, a quote of EURUSD 1.23 means that one EURO is worth $1.23. In this pair, the base currency is Euro (EUR) and the counter currency is the US dollar, Hence, every currency pair is listed in most currency markets worldwide.
Tell me a market that never closes during the working week which has the largest volume of the world’s biggest business and with people from all countries of the world participating every day?
Yes, the Forex Market. It is the global premier financial market, which mirrors the financial dynamics of the world trade pretty clearly.
When you start trading Forex online, you may find yourself stunned and confused by the absolute number of currency pairs.
With over than 200 countries in the world, you can find handful of currency pairs to indulge with trading, though, these currency pairs may not have the potential to deliver the great results to traders.
So, what are the currency pairs
Before examining about the best currency pairs, it is good to enhance our knowledge on the most popular currencies that can be found
• US Dollar (USD)
• Euro (EUR)
• Australian Dollar (AUD)
• Swiss Franc (CHF)
• Canadian Dollar (CAD)
• Japanese Yen (JPY)
• British Pound (GBP)
Although, there are lots of traders who trade in exotic currencies such as the baht or the Czech koruna, the majority of dealers trade the seven most liquid currency pairs across the world.
Let’s have a look at the major currency pairs
• USD/JPY (dollar/Japanese yen)
• GBP/USD (British pound/dollar)
• USD/CHF (dollar/Swiss franc)
• EUR/USD (euro/dollar)
• EUR/USD (euro/dollar)
• AUD/USD (Australian dollar/dollar)
• USD/CAD (dollar/Canadian dollar)
• NZD/USD (New Zealand dollar/dollar)
Now, the question is, what is the best currency pair to trade?
The answer is not easy, you cannot get the straight answer as it varies from trader to trader. Take some time and analyze different currency pairs which is best suits your strategy in the best possible way, it may depend on Forex session you take and may vary accordingly.
So, decide wisely which currency pair you should trade in Forex Market.