What are the Best Currency Pairs to Trade

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What are the Best Currency Pairs to Trade?
Theforexsecret.com
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Introduction
Can you name a market that never closes during
the working week? Which market has the largest
volume of the world's business? In which market
people from all countries of the world can
participate every day?
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There will be one answer that is the Foreign
Exchange Market (Forex). There is a famous
movie named 'Wall Street' in that movie there is
a great saying that 'money never sleeps'. No
matter what time you are in there will be
transactions 24 hours of the working day. This
market has the capacity to facilitate the
exchange of major currencies from all over the
world. As a result, it is the center of attention
of all the major actors.
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In the forex market, there is a trade-off among
two major currencies pare of two different
currencies. When you will trade online you will
be surprised by yourself with the number of
currencies available in the Meta Trader terminal.
Now the question is what is the best currency
to trade. There is no specific answer. It varies
from trade to trade. Through trial and error, you
have to find out which currency is best for your
strategy.  This article is going to explaining
different currency pairs and it will help you
which currency pair is best for your strategy. It
will also explain what are the major currency and
what are the minors.
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What are Currency Pairs?   Forex is all about
buying and selling currencies in pairs. To get in
this business you need to know each pairs
relative price. This relevant price defines the
currency price. A currency pair is named after
two currency abbreviations. One of them is
considered as the base currency. There is an
international code that determines the currency
price. As an example, if we say EURUSD 1.29 that
means the price of the euro is 1.29. The first
currency (Euro) is considered as base currency
the other (US Dollar ) is considered the counter
currency. Each of these currencies pares is
listed in all the markets around the world.
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What are the Best Currency Pairs to Trade?   With
over 200 countries in the world, you can find a
handful of currency pairs to engage with
trading. But there is no surprise that the US
Dollar is the most dominated, strongest
and widely traded currency in the world.  
The reasons are because of the big size of the US
economy and its political influences. As a
result, it is preferred as a reference point for
most of the currencies in the world. If we look
at the reserve currency, the US Dollar is the
most used one after gold.     The following
currency might not be the best currency pares for
trading but these are one which has high
liquidity.
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     EUR/USD (Euro US Dollar)         
USD/JPY (US dollar Japanese Yen)        
GBP/USD (British Pound US Dollar)       AUD/US
D (Australian Dollar US Dollar)      USD/CHF (U
S Dollar Swiss Franc) USD/CAD (US Dollar
Canadian Dollar)  
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The currency pares keeps fluctuation in relation
to each other as the amount of money keeps
changing from one currency to another currency.
The price also has relations to the financial
power and trade volume of a country. So the price
is the most volatile one which fluctuates. So
does it make the best currency? No, a trader can
either make money or lose money on this
fluctuation. The rest of the currency pares have
low volatility compared to the first one.    
Analysis of the Best Currency Pairs to Trade
Let's take a look at the currency pairs below
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USD/EUR is said to be the most popular currency
pair. On top of that, the spread is very low
for Forex brokers. This USD/EUR is closely
related to the Technical Analysis. This
currency is not too volatile that is the best
thing about it.  If you want to avoid risk then
it can be the best currency pair for you because
it will not cause much doubt in your mind. You
can get lots of news regarding this pare which
can help you to avoid novice mistakes.
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USD/GBP  This currency pare Profitable pips and
it has a big change in price which contributes to
the popularity of this currency. But at the
same time, you should keep in mind that
large profit comes with a big risk. We can put
this currency into the volatile category.
Whatever some traders with risk-taking attitude
and good knowledge of this currency feel
comfortable to trade.
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USD/JPY  This is another popular currency which
is very popular in the Forex market. Generally,
it has low spread and if you compare it with
other currency you will find a smooth trade in
this currency. It also has a lucrative
opportunity to trade.
Most of the currency you will find with a tight
spread in the international market. But you cant
apply this to USD/GBP because of the volatility.
It is better to avoid currency with a high
spread.   The recommended spread should be around
0-3 pips. When it exceeds 6 pips it becomes
expensive that can cause greater losses.
Special Pairs (Or Exotic Currency Pairs)   So,
what is the best currency pair? The currency you
know best is best for you to trade. It will be
very useful to you if you can trade in your local
currency.
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Because you collect batter knowledge (political
and economic issues) about the currency. But if
your local currency is not included in the major
one, the US dollar could be the best counter
currency.      You can collect Forex-related
information from the Forex calendar, which also
lists predictions and forecasts regarding the
major currency pair.     If you feel confident,
it is also recommended to consider trading the
pairs that contain your local currency (also
known as 'exotic pairs'). In those cases, your
local currency pair will be countered against USD
so you would need to stay informed about this
currency as well.
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Conclusion
  The changing aspects of foreign exchange
trading is an interesting subject to study, as it
can provide a boost to the global economy with
the rise and fall of financial fortunes. As
globalization has become more and more
borderless. You should be informed about the most
pressing issues around the world, the response of
these pairs is closely interconnected. Make
sure you study the foreign exchange market
extensively before you invest there. There are
many Forex pairs available for trading and we
highly recommend you to study before you choose a
particular one to deal with.
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As Forex trading is risky, try it first on a Demo
account with a realistic balance which means most
traders use million dollars to trade but in
reality, they might have 100 dollars to trade.
Another reason is when you are in demo account
time pressure works on the other hand when you
use real account then emotions and real pressure
works. So identifying the best currency pair to
trade is not easy. The best way to accomplish
this is through hands-on experience.