Every trader needs to know the best currency pairs in Forex to make sure they can make the most of these pairs. Even though you can trade any currency pairs in the Forex market, some of them are just considered better to trade than others.
That’s why it is better to know which currency pairs are better than others, especially in your case. Some currency pairs like AUD/USD and NZD/USD are considered popular nowadays because they provide a lot of trading opportunities. The EUR/JPY pair is also known to be trending these days.
Knowing which currency pairs are currently trending is not the only thing you should do. You also need to know the correlations between the currencies involved in the pairs. By understanding the correlations, it would be easier to analyze and forecast the price movement of the respective pairs.
Before identifying the best currency pairs in Forex, it is also essential to know if there are three categories of pairs in the market, including major, exotic, and cross currency pairs. The major pairs are commonly popular and traded by many Forex traders.
Tips on How to Select the Best Forex Currency Pairs
Then, how to choose the right currency pair to be traded in the Forex market? Beginners are generally advised to choose the major currency pairs because these pairs are generally more stable than others. However, in general you can use the following tips to determine the right choice.
1. Opt for a low-risk currency pair
Choosing the right currency pair can reduce risk in the Forex market. If you are looking for one that matches this parameter, a currency pair like EUR/USD could be the right candidate. Why? Because this currency pair tends to be stable and does not show significant fluctuations.
Due to low fluctuations, the risk of trading on the best currency pairs in Forex is also low. You also do not need to worry about the potential profits because these currency pairs tend to make traders gain more profit with their commonly low spread.
2. Go for a dynamic currency pair
If you are more interested in something more challenging, go for more dynamic currency pairs. For example, you can choose GBP/USD which is known to be more dynamic than EUR/USD. This pair also has a fairly low spread of around 2 pips, offering a pretty promising profit.
3. Understand the risk of each currency pair
Whatever currency pair you choose, make sure you understand the risks and correlations. If you do not dare to take a big risk, it is better not to try a currency pair like GBP/JPY because this pair is very dynamic.
Trade the Best Currency Pair with the Best Forex Broker
Have you decided which currency pair to trade in the Forex market? Once you found the best currency pairs in Forex, it would be better to meet a reliable broker and open an account. However, if you are new to Forex market, learn further would be a wiser choice.
Fortunately, there is Didimax’s Forex broker that allows you to start trading in the market while learning with professional and experienced mentors. With several trading courses provided, traders in Didimax broker can learn further about the Forex market without paying anything.
This
best Forex broker in Indonesia allows you to take online webinars and seminars for free on its portal. You even have an opportunity to join private training session for a more engaging course with an expert in the market.
To conclude, knowing the best currency pair to trade in the Forex market is not enough. You need to learn the market further to improve your winning opportunities. You can consider joining with educational programs offered by Didimax while trading the best currency pairs in Forex.