Experiences in forex trading, by a special way.

November 14, 2022

Best Currency Pairs To Trade Forex

Which currency pair to trade forex? What is the best currency pair? Which currency pair to choose when trade forex? This article will answer those questions.


In the forex market, there are 7 major currency pairs and 21 minor currency pairs.

7 major currency pairs:
They are currency pairs between USD and 7 currencies of countries as shown in the image above. They are divided into 2 groups, xxx/USD and USD/xxx, including:
Eur/Usd: Euro currency and US Dollar.
Gbp/Usd: British Pound and US Dollar.
Aud/Usd: Australian Dollar and US Dollar.
Nzd/Usd: New Zealand Dollar and US Dollar.

USD/Jpy: US Dollar and Japanese Yen.
USD/Cad: US Dollar and Canadian Dollar.
Usd/Chf: US Dollar and Swiss Franc.

21 minor currency pairs (cross pairs):

They are currency pairs between 2 out of 7 currencies, which do not contain US Dollars. Includes: EUR/GBP, EUR/JPY, GBP/JPY, AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, CHF/JPY, CAD/JPY, CAD/CHF, EUR/AUD, EUR/CAD , EUR/CHF, EUR/NZD, GBP/AUD, GBP/CAD, GBP/CHF, GBP/NZD, NZD/CAD, NZD/CHF, NZD/JPY

Of course, a forex broker will have hundreds to thousands of products for you to trade. From currencies of countries other than the above 8 (eg Singapore dollar, RMB,...), to products of the resource/metallic group such as gold, silver, oil, ... agricultural products such as coffee, wheat, corn,... However, this article only talks about the MAJOR products traded in the forex market, with the largest trading volume, that is GOLD (with trading code Xau/Usd) and 28 currency pairs mentioned.

Read more: How to use metatrader4

Some tips on choosing currency pairs to trade:

- Should prioritize trading 7 major currency pairs, these currency pairs often have very low spreads. Typically Eur/Usd and Usd/Jpy.

- Priority should be given to trading 7 major currency pairs, these currency pairs often have very low spreads. Typically Eur/Usd and Usd/Jpy.

- The most "gentle" moving currency pair is probably Eur/Usd. This currency pair is the number 1 choice for traders who are new to forex trading.

- The most unpredictable moving currency is the British Pound (Gbp/xxx or xxx/Gbp). Caution should be exercised when trading currency pairs containing the British Pound.

Some principles and notes when trading currency pairs in forex:

- Do not buy or sell at the same time 2 main currency pairs belonging to 2 different groups: As shared, 7 major currency pairs are divided into 2 groups of Usd/xxx and xxx/Usd. You should not both buy Usd/xxx and buy xxx/Usd, or you should not both sell Usd/xxx and sell xxx/Usd. Because these two groups often move in opposite directions (one group increases, the other decreases).

- Usually Gold (Xau/Usd) will move in the same direction as the xxx/Usd currency pair.

Best regards,

CaPhiLe.Com

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