Choosing currency pairs for Forex, you can come across a lot of recommendations and whole stories about the impressive experience of each trader who is ready to share his impressions. For any currency trader, both for an experienced trader and for a beginner, the choice of a currency pair is individual.
Each pair is most active at a specific time. For the Pound and the Euro to the Dollar, this is the work of the American, European and English economies. At night, Asian traders begin to work and these tools give out many false signals. The period of active work of national banks of different currencies is a trading session.
This is also one of the main differences between different pairs. This concept means how much a certain pair fluctuates at a particular time. That is, a couple downloads, and these jumps can be of any size. There are fairly calm couples, but there are also regularly jumping. GBP / JPY and GBP / USD - these pairs always fluctuate first in terms of fluctuations.
If your strategy involves such fluctuations, you can use these tools. EUR / CAD, EUR / AUD - are characterized by great calm, and USD / CHF, GBP / CHF, EUR / USD and USD / JPY - practically do not jump. A large number of merchants prefer them. Almost complete calm is observed at EUR / CHF and EUR / GBP.
Currency pairs can be divided:
The main pairs are those in which the dollar and the currencies of large stable countries are present. This is the Canadian, New Zealand and Australian dollars, euros, Swiss francs, British pounds, Japanese yen.
Cross rates - here, on the contrary, there is no dollar. The most popular pairs from this category are those in which the yen is present. Although, for beginners it is better to postpone them for later, since they may turn out to be quite unexpected, but not in a pleasant sense. First you need to gain experience in technical forecasting.
Exotic pairs - there is a dollar and currencies of countries whose names are unfamiliar to many people. Predicting them is not very simple, liquidity is low, in contrast to the spread.
Currency pairs can be divided:
The main pairs are those in which the dollar and the currencies of large stable countries are present. This is the Canadian, New Zealand and Australian dollars, euros, Swiss francs, British pounds, Japanese yen.
Cross rates - here, on the contrary, there is no dollar. The most popular pairs from this category are those in which the yen is present. Although, for beginners it is better to postpone them for later, since they may turn out to be quite unexpected, but not in a pleasant sense. First you need to gain experience in technical forecasting.
Exotic pairs - there is a dollar and currencies of countries whose names are unfamiliar to many people. Predicting them is not very simple, liquidity is low, in contrast to the spread.
