Currency Pairs for trading

In the forex market, a lot of trading is done with currency pairs. You buy one currency by selling another currency. Whatever the difference is in the currency pair prices, that is considered to be your profit and it occurs in the natural course of the market.

There are many currency pairs in the forex market. A currency that is most commonly traded can be matched with any other and this is how a pair is created for trading. However, all currency pairs are not always equal. Some are better to trade than other currencies. Check out this article to know which currency pair is the best one to trade with and why.

King of the Hill :

The most heavily traded currency pair is the EUR/USD, or the Euro-Dollar. This pair covers a huge part of the entire forex market volume. Many training products and system are actually focused on the EUR/USD alone, because it offers a lot of liquidity and volume and will set the tone for the entire market.

4 top Major Pairs :

Other than EUR/USD, there are 4 other pairs that are most worthwhile currency pairs to trade with. These are EUR/USD, GBP/USD, USD/JPY, and the USD/CHF. Hence, you can see that a total of 5 currencies make up the 4 top pairs, (Euro, British Pound, US Dollar, Yen, and Swiss Franc) and the Dollar is present in all of them.

When you trade with these pairs, there is a lot of liquidity, hence you will always find a buyer ready for transactions when you want to make with these pairs. The commission on these pairs is usually low. Brokers take a small spread because they make their profits in sheer volume. If you are trading with pairs that are less known, there are chances you will make bigger commissions which can eat into your profits.

Other common pairs :

The top 4 pairs mentioned above are the most liquid pairs. However, there are other 3 pairs that are also considered to worthwhile. They are AUD/USD, NZD/USD, and the USD/CAD and they offer competitive spread rates as well.

One Response to Currency Pairs for trading

  1. Marhta Lohmeyer says:

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