kochtgr Posted April 16, 2011 Share Posted April 16, 2011 The two main features you need to look at when you want to know which currency pair is the best for your forex trading strategy are the trading volume of the currency pair and the fundamentals of the economies behind the currencies. 1. Trading Volume of The Currency Pair If you are into forex trading for quite a while, you have probably heard that you should choose the currencies that are traded the most. The basic reason for that is that these currencies are highly liquid which means that you will enter your trades exactly where you want and you will not suffer often from slippage. Another important reason is that brokers offer tighter spreads and lower fees for these currency pairs because there is strong competition between them and additionally the majority of traders trade with these currency pairs. The most traded currency pairs are 3 and US dollar is included in all of them. The pair with the highest volume is Euro and US dollar or EUR/USD, second in volume is the Japanese Yen and US dollar or USD/JPY, and the third one is the British pound and US dollar or GBP/USD. 2. Fundamentals Of Currency Pairs The correlation between two countries economy is a very important factor, which determines how the currency pair of these countries behave in the forex market. For example, the pair of Euro and British pound usually does not make big moves because the economies of Eurozone and Great Britain have a strong correlation and they have common economic interests. On the other hand, pairs like EUR/USD and USD/JPY tend to be more volatile because the correlation of the economies behind the currency pairs is not so strong. Source: Choosing Currency Pairs Quote Link to comment Share on other sites More sharing options...
boniez Posted April 24, 2011 Share Posted April 24, 2011 choosing currency pair is important, especially for major forex pair. we should choose that as beginner cuz just have a less spread. but dont use currency pairs that have a large spread Quote Link to comment Share on other sites More sharing options...
arhabib Posted April 20, 2013 Share Posted April 20, 2013 I think we should follow fundamental analysis for JPY/USD pair. Quote Link to comment Share on other sites More sharing options...
shoaybkhan Posted July 29, 2013 Share Posted July 29, 2013 Choosing Currency pair should be the first priority in spread terms. Quote Link to comment Share on other sites More sharing options...
euro Posted October 5, 2013 Share Posted October 5, 2013 Good post. I think you're right we must invest in most traded currencies as they're in demand and give us profitable trends to trade. I think we should avoid high spread, low demanding pairs and also high slippage pairs and less traded pairs to avoid losses. Euro/usd is my choice or also gbp/yen or euro/yen or usd/yen are my choices as well. I think we must choose carefully in order to make a profit. Quote Link to comment Share on other sites More sharing options...
Thayungsta Posted October 12, 2013 Share Posted October 12, 2013 to chosen currency pair is like a fundermental course we need to follow Quote Link to comment Share on other sites More sharing options...
Thayungsta Posted October 12, 2013 Share Posted October 12, 2013 sometime we need to consider the facts of currency pair as a beginner Quote Link to comment Share on other sites More sharing options...
euro Posted October 15, 2013 Share Posted October 15, 2013 I say go with the popular, demanding ones since they will help you gain more profits. Even popular one will have bad times as the market fall so you should be careful cause no pairs are golden shield. They have their good times and bad times so beware of that. Euro/usd have been performing really poor lately due to US white house shut down. But it will get better next month or so or at least I know we can go short on usd. Choose low spread pairs, highly demanding and highly traded so to reduce your risks. Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 26, 2013 Share Posted October 26, 2013 to select the pair certainly in early trade as it concerns our ability to perform analysis with this pair and the pair is in understanding the trade will increasingly make us better in the analysis sometime we need to consider the facts of currency pair as a beginner Quote Link to comment Share on other sites More sharing options...
surya77 Posted February 8, 2014 Share Posted February 8, 2014 for newbies may I suggest to trade AUDUSD or Japanes Yen, why? this Two we know is safe haven currency in other word is anti crisis, remember Australai is natural resource economic powe and Japan is Technology and Industrial background. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 24, 2014 Share Posted November 24, 2014 We must be careful when it comes to choose currency pairs, because with only one mistake the pair that we choose will lead us to demise. I suggest EURUSUD as the most stable yet the most predictable pairs compared to the others. GBPUSD and USDJPy following if you want more pairs with additional income. Quote Link to comment Share on other sites More sharing options...
eaglehyipmonitor Posted December 4, 2014 Share Posted December 4, 2014 i think EUR/USD is mostly used in the world .mostly people like to deal in this pair. Quote Link to comment Share on other sites More sharing options...
myregister Posted December 8, 2014 Share Posted December 8, 2014 i think EUR/USD is mostly used in the world .mostly people like to deal in this pair. That is major pair since the liquidity is high that is why many traders keep trading with it. EURUSD including as one of them, but there are others which also contain potential like USDJPY, AUDUSD, or GBPUSD. You should choose between them and try to diversify your currency pair. Quote Link to comment Share on other sites More sharing options...
Alice Frampton Posted February 17, 2015 Share Posted February 17, 2015 It’s a big choice that of choosing currencies because if we go with wrong one it can be really bad as an unknown pair can do serious damage, hence it’s crucial that we stick to few pairs and that also mainly that we know well about and that is why I only prefer EUR/USD or maybe EUR/JPY. These are pairs that I understand the most so I trade only with them and the other major advantages is to have very low spread of just 0.2 pips with OctaFX broker as they have this low spread for all major pairs, hence even if we try to trade on others yet it’s not so difficult policy to work out especially if we have even little knowledge. Quote Link to comment Share on other sites More sharing options...
myregister Posted February 22, 2015 Share Posted February 22, 2015 When choosing currency pair the one should be careful. Make sure you have one major pair in your arsenal if you prefer to choose currency pair which is not major one like GBP/JPY or even like CNY/USD or something like that, since major pair mostly easier to predict. Quote Link to comment Share on other sites More sharing options...
shemoalaa85 Posted May 18, 2015 Share Posted May 18, 2015 choosing currency pair is important, especially for major forex pair Quote Link to comment Share on other sites More sharing options...
pepy Posted May 21, 2015 Share Posted May 21, 2015 Of course for most traders around the world i am sure they will prefer EURUSD that will give them more benefit compared to the others, even Yuan and few other currencies is emerging right now but that does not mean those currency will take over EURUSD as the most popular one. Quote Link to comment Share on other sites More sharing options...
myregister Posted September 23, 2015 Share Posted September 23, 2015 EURUSD and GBPUSD, i can say those two at the right time could bring more benefit and also overall the volatility is high rather than USDCYN or AUDUSD even USDJPY. Cross pair also good but the volatility is totally extreme and sometimes has high spreads. Quote Link to comment Share on other sites More sharing options...
Vaabum Posted April 22, 2022 Share Posted April 22, 2022 I try to use those pairs that bring the maximum profit at the moment. I think this is quite the right choice. Quote Link to comment Share on other sites More sharing options...
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