Among more than 200 countries of the world, you can find a very large number of currency pairs to participate in Forex trading. However, not all currency pairs can give traders the best results. Which currency pair is best for trading? Which currency pair is worth trading the most and why? Let's try to answer these questions in this article.
Before analyzing the best pairs of currency trading, we should identify the most popular currencies for trading in the Forex market. These include:
These currencies make up some of the most popular currency pairs. If you choose any of the currency pairs that we are going to discuss below, you will greatly simplify the trading for yourself, since a lot of expert analytical tips and data are available on them.
Let's take a closer look at the currency pairs presented below:
EURUSD - it can be considered the most popular currency pair. In addition, she usually has the lowest spread among Forex brokers. For this currency pair, it is quite easy to conduct basic fundamental and technical analysis. The main advantage of this currency pair is that it is not too prone to volatility. If you are not a fan of big risks, then you should think about choosing this currency pair as the main one in your trading. You can also find quite a lot of information about this currency pair, which will help you avoid newbie mistakes.
GBPUSD - profitable points and possible big leaps have made a big contribution to the popularity of this currency pair. However, you should keep in mind that higher returns are associated with greater risk. This is a currency pair that can be categorized as highly volatile. Nevertheless, many traders prefer to choose it as their best currency pair for Forex trading.
USDJPY is another popular currency pair that you can regularly see in the world of Forex trading. This factor is associated with low spreads, as well as the fact that, as a rule, for this pair, you can more safely follow along with its trend, in comparison with other pairs. The pair can also provide traders with very profitable profit opportunities.
All major currency pairs that can be found in the modern world of currency trading are characterized by rather narrow spreads. However, this fact is not applicable to the GBPUSD currency pair due to its volatility. It might be better to avoid currency pairs with high spreads. The trading spread recommended by experts is about 0-3 pips. When it exceeds 6, a trading pair can become too expensive, which can lead to large losses.
However, this does not mean at all that you should completely avoid pairs with higher spreads and / or volatility. The best way to trade wisely and efficiently is to competently manage risk in your trading and avoid emotional behavior, which, coupled with technical and fundamental analysis, will allow you to trade profitably in the foreign exchange market.
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