What currency pairs are worth to be trading
Trade in the Forex market is carried out in currency pairs. You buy one currency, selling another. Profit is realized through the difference between the currency pair prices, which change at work of the original movement of the market.
There are a variety of currency pairs. In principle, any currency can be matched with other to form a currency pair that can be traded. However, not all currency pairs are equal and some of them are better for trading than others. In this article we will discuss which currency pairs are best traded and why.
The king of the hill
The most actively traded currency pair in the world is Euro-Dollar pair. Trading only on this pair you can earn a good deal of money. In fact, most of the training materials are focused on trading with the help of EUR/USD. This pair has liquidity and volumes, and also gives tone to the entire market.
Basic currency pairs
But EUR/USD is not the only currency you can trade with. In fact, there are 4 most popular currency pairs. These are EUR/USD, GBP/USD, USD/JPY and USD/CHF. As can be seen, 5 currencies in total make 4 currency pairs and US Dollar is present in all of them.
Other general pairs
While the 4 above-mentioned pairs are the most liquid, 3 other pairs are also quite often used for trading. These are AUD/USD, NZD/USD and USD/CAD. They are also quite common and offer competitive prices and low spreads.
Other pairs are usually called exotic pairs. And if you do not have concrete reasons for trading on exotic currency pairs, then we do not think that they should be traded. The commission here is much higher and liquidity is not high enough.