Which forex currency is best for beginners?

fintechnews.sg - Which Forex Currency Is Best for Beginners? - Fintech News Singapore

Is a Trixie a good bet?

Trixie betting is a great way to hedge your bets a little in case one of your selections doesn't win and can prove to be lucrative if they all come...

Last updated Sep 30, 2020

What are 7 5 odds?

What does 7 to 5 odds mean? 7-5 Betting Odds means that out of 12 potential outcomes, the 7/5 odds are that there will be 7 of one kind of outcome...

Last updated May 2, 2019

Make Your Bookie Cry And Pull The Hair By Generating $23,187

Promotion

Forex trading has gained a lot of attention in the last couple of years. However, as more people try to find different ways to make money in forex trading, their inexperience in this field is becoming the reason behind losing their capital. While forex trading has gained a lot of traders, they still need to understand the complexities behind trading in a pair. Contrary to popular belief, it is not easy to select the best currency pair for your investment. A large number of beginners jump into forex trading without doing homework and invest in a pair that hardly gives them any profit. If you are a beginner and don’t want to make the same mistakes, choose the currency pair carefully.

What Is A Currency Pair?

A currency pair is the value of one country’s currency compared to another country’s currency. When you trade between a pair, you intend to make a profit out of the difference. In other words, you try to compare the value of the QUOTE and BASE of the currency. The Quote is the value of the currency at which the trader will sell, and the Base is the value at which another trader is willing to buy. So far, it has been easy. The difficulty starts when a beginner trades without predicting the fluctuation in the price.

Types Of Currency Pair

Forex trading can be divided into the following categories.

Majors

The majors are generally the most popular type of currency pair the world trades. These are currencies from first-world countries and are highly valued. In addition, they will always include US dollars and are generally the most liquid. Because of these features, it allows traders to trade in them freely without worrying about their liquidity. Majors have the highest liquidity of all the types mentioned below. As these currencies are popular for any investor, they are easy topics of research and investment. Perhaps, this is also the reason why this category is crowded with investors.

Minors

Minors do not include US dollars, but it does include other currencies like EURO. The only difference between Major and Minor is that Minor has lower level liquidity, and generally, there is less available data on these currencies to research. Trading minor currency is, therefore, less competitive. On the other hand, this gives the investors an advantage to invest and make a profit.

Is winning the lottery stressful?

Winning is understandably a life-changing moment that can cause stress or excitement, which can lead to rash decisions. Mar 21, 2019

Last updated Dec 3, 2019

Do bookies lose if Favourite wins?

Each week, many punters betting on football put a selection of favourites in their accumulator. If the favourites all win, the bookie pays out. Feb...

Last updated Jan 21, 2020

Promotion

Crosses

Crosses are any currency pair that doesn’t include the US dollar.

Now, you must be wondering if it is similar to the minor. Well, no! In minor, at least one major currency is involved in the pair. But in crosses, both currencies are minor.

How To Find The Best Currency Pair To Trade?

When it comes to selecting the right pair for your investment, it is important to consider the following factors.

Liquidity

Liquidy is the key factor that decides which currency to trade. As a trader, you would want to trade in a currency that can easily be bought and sold. The exception to this rule is traders who seek to take advantage of fluctuating performances. This method of making a profit is called Scalping. And involves taking small profits several times throughout the day of trade.

Price Stability

The price stability of any currency is linked to the health of the economy. A country with a better economy will show better stability in their country’s money. So, when you are looking for a currency pair to trade, look for a currency that belongs to a healthy economy.

Predictability

Predictability comes down to how much information you have about a particular currency. The benefit of trading major currency pairs is that you will have enough information to research and make calculated decisions. Lesser global currencies are hard to predict because they are new to the forex exchange and have less information to offer.

What Time Of The Day Do You Trade

Forex trade is open 24*7. That means you can trade in forex any time you like. The flexibility that you get in trading play a major role in determining the price. For instance, trading during the day and night will give you different experiences with the same pair. In addition, if you are trading in different currencies, you need to be aware of their region and when that region is active. For instance, you might be a night trader in the USA. In that case, Europe and the Middle East may be close. Therefore the only option left is the USA and Asia.

Major Currencies With The Best Trading Potential

Which boxer is a billionaire?

Floyd Mayweather Jr. Floyd Mayweather Jr. is a world-renowned boxing champion and promoter known for not shying away from flaunting his wealth...

Last updated Jan 17, 2022

When should you stop sports betting?

Signs of a Sports Betting Addiction Unable to control the amount you spend on betting. Placing bets as an escape from difficult situations or...

Last updated Jun 2, 2018

Promotion

USD.

EUR.

GBP.

NZD.

AUD.

JPY.

CHF.

All the above-mentioned currencies belong to the top currencies and can form a pair for trading. There are 27 different pairs that you could combine to make the majority of the forex trading. One thing to keep in mind when you are trading in forex is its trading sessions. With the major markets centered around Asia, Europe, and the United States, the time zone of these countries vary a lot. Because of the time zone differences, it is important to consider the trading session. For instance, trading during the night will give you a different experience than trading during the day. That being said, make sure that the location, market opening time, closing hours, and the market suit you.

Which Is The Best Pair To Trade For Beginners?

If we are talking about a single pair that is the safest option to trade for beginners, it will definitely be USD/EUR. This pair is not only the easiest but also a stable currency pair to trade. USD/EUR is the most traded worldwide because of its high liquidity and light spreads. But because many investors invest in this pair, the pair is the most volatile in nature and is really hard to predict. Furthermore, all the major banks and financial institutions use this pair as a major trading instrument, which adds more to its volatility. Although USD/EUR is the most traded pair, you don’t have to go for it. There are other pairs as well that can give you profit. The only thing you need to do is do thorough research and find optimal entry and exit points.

Featured image credit: Edited from freepik here and here

fintechnews.sg - Which Forex Currency Is Best for Beginners? - Fintech News Singapore

What is the best online casino?

Red Dog: Best online casino overall. Ignition: Best for poker. Bovada: Best for betting. Slots.lv: Generous welcome bonus. Bitstarz: Best for...

Last updated Jul 1, 2020

Who is the best technical skills in football?

Revealed! The top 10 most skilled footballers in the world right now Ronaldinho. Ronaldinho is in a league of his own when it comes to ranking the...

Last updated Nov 23, 2018

Promotion

What does it mean when odds are 9 5?

What does 9 to 5 odds mean? 9-5 Betting Odds means that out of 14 potential outcomes, the 9/5 odds are that there will be 9 of one kind of outcome...

Last updated Jul 18, 2022

Promotion

Does everybody get withdrawals?

Generally speaking, everyone can expect to experience some form of withdrawal symptoms within two to three days of their last substance...

Last updated Aug 23, 2022