Which Forex Major Currency Pairs Are the Best to Trade?

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Forex major currency pairs

Which Forex Major Currency Pairs Are the Best to Trade?

Forex trading offers much more flexibility than many traditional stock market markets. Since most Forex markets are made up of very liquid securities, you can place orders for them twenty-four hours a day and any time is a good time to place your order. In fact, just about any time of the day is a good time to trade currencies.

With that flexibility comes the challenges of tracking and following which currency pairs are the best ones to trade. There are too many currency pairs to be able to evaluate each one on a minute by minute basis. And even if there were, many people would struggle to keep up with the vast amounts of data and charting that the markets require.

So, what are the best options for those who wish to use currency pairs as a trading strategy? Here are a few of the top options:

Binary Options Trading – This is a very popular and widely used way to trade foreign currencies. The idea is simple, buy and sell the currency pair you like for a set amount of cash.

This gives you the availability liquidity you need to place and trade your orders. But for those that wish to use currency pairs as their main currency trading strategy, there are some difficulties with this system.

For one thing, a binary option has a huge financial risk attached to it, just like in any other investment. Because of that, the minimum return allowed on a binary option is not much more than a small percentage of the initial investment.

One of the most common trades for traders is the option to buy or sell. But there are few options that give that leverage. On the other hand, these options also carry a small risk, with very little payoff.

Scalping Currency Pairs – Many traders choose to take a position for a very short period of time. They may get out of a position only to start a new one as soon as the previous one expires. For instance, if the currency pair you’re trading is the dollar against the Swiss franc, you may be a little concerned about the market fluctuating sharply.

But instead of tying yourself up in a losing position for months, or even years, a scalper will take advantage of the volatility in major currency pairs and sell short at the highest possible price. The downside to this method is that when the currencies have gone back down again, you could be left holding a big loss.

Commodity Trading – This is another method that is becoming more popular for currency pairs. This involves buying a currency while it is weak and waiting for it to rise until the supply of that currency begins to decrease.

It’s important to note that this strategy may not be appropriate for every major currency pairs. The most popular commodities are the United States dollar and the British pound sterling.

Finally, always remember that learning the basics of foreign exchange trading doesn’t mean you need to spend all of your time studying various currency pairs. There are many other strategies that can be applied to other currencies.

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