Which Frex pair is best to trade?
How can you get started Forex trading, and which currencies are worth converting? We’ve collected information on six of the most popular and profitable pairs:
When learning about Forex trading, many beginners tend to focus on major currency pairs because of their daily volatility and tight spreads. However, there are many other opportunities — from exotic FX pairs to CFD trading opportunities on stocks, commodities, energy futures, to indices. There are even indices that track groups of indices, and you can trade them as well.
Currencies are traded as pairs, and the movement of currency pairs measure the value of one currency against another. For instance, the EUR/USD currency pair measures the value of the Euro against the US dollar.
The most liquid currency pairs are the ones with the most supply and demand in the Forex market, and this supply and demand are generated by banks, businesses, importers and exporters, and traders. Major currency pairs tend to be the most liquid, with the EUR/USD currency pair moving by 90-120 pips on an average day.
By contrast, the AUD/NZD moves by 50-60 pips a day, and the USDHKD currency pair only moves by an average of 32 pips a day. The major Forex pairs tend to be the most liquid, and therefore provide the most opportunities for short-term trading. You can consider major currency pairs.