When starting to trade Forex, you should focus on the best Forex pairs for trading.
By “best” i mean those pairs that are widely traded, have the most liquid markets and have sufficient price movements (or, volatility) to be worth trading.
In addition, the bid-ask-spread for these currency pairs should not be too big, to cap the the trading cost ands allow for higher profits.
The following pairs are consistently recommended as best for trading in the Forex markets for meeting these requirements:
- EUR/USD (Euro/US Dollar)
- GBP/USD (British Pound/US Dollar)
- USD/JPY (US Dollar/Japanese Yen)
- USD/CHF (US Dollar/Swiss Franc)
- USD/CAD (US Dollar/Canadian Dollar)
- AUS/USD (Australian Dollar/US Dollar)
By limiting yourself to these pairs you can:
- reduce the amount of time spent searching for potential trades
- locate stronger and better trends developing among fewer pairs and
- make it easier to get into and out of a trade quickly.
You can go a step further, as well, and limit yourself to the two most liquid and widely traded pairs: EUR/USD and GBP/USD.
Choose one of these pairs and study it’s behaviour more intimate until you get a feeling for its moves, its “personality”. This will help you a lot with your future trading decisions.
