One of the best aspects of Forex markets is that they offer you with a plethora of trading choices. From trading hours to the currency pairs, you can choose pretty much every aspect of your trade. However, one thing to remember is that without the right trading pairs selected, even the best strategy might fail! Most beginners only narrow their focus on the USD/EUR, when in reality there are tons of other good pairs too!
Let’s take a look at what you need to know about currency pairs and the best ones in 2021:
To put it simply, Forex trading is the exchange of currencies. You buy a currency and then sell it later when it has a higher value, thereby making a profit. Now in the event of the currency going down, you end up losing.
Choosing the best currency pair
There are several currency pairs in the market. We will talk about the most prominent ones, because they are the ones with the highest profit ratio. However, you can also keep trading exotic pairs on the side to have a steady income – the best pair always depends on market conditions!
It is without doubt one currency pair you should always keep your eye on. It is the world’s leading reserve currency and one that is the most traded too. Since the USD belongs to the largest economy, and EUR to the second largest, it goes without saying that this pair is your bread and butter. Even if you wish to trade slow, always keep an eye on this currency pair and capitalize on any profitable developments!
Since the USD is the best performing currency, hope to see it paired with most currencies! Next in line is the USD/JPY pair, where you trade with the Japanese Yen. Unlike many pairs however, this one relies a lot on the political situation between America and Japan. So if you are planning on participating in USD/JPY trades, keep an eye on what’s happening in the background!
Given that Canada and the USA are neighbours, this pair is definitely a profitable one for you to work with. Many long-term FX traders trade the USD/CAD pair and make healthy profits from it. This pair is often referred to as the “loonie” and trades pretty well in most markets.
The Great Britain Pound and the USD are another popular pair you will find most traders indulging in. As a Forex trader, you have a variety of options to trade. But when you enter the markets for good and are looking for long-term profits, pairs like this one will come in handy since they bring you good returns! Also known as the “cable” this pair is a fan-favourite!
The “swissie” is maybe not as popular as the rest, but definitely plays a big role in long-term revenue generation. If you want to thrive as a Forex trader, keep this pair in mind. It negatively correlates with the EUR/USD and GBP/USD pairs so keep that in mind too! It is also known as the safe option for traders, so if you’re in a risky spot, bank on this pair!
Thriving as a currency trading is no less than a challenge. Many traders fail to multiply their revenue and some even go deep in losses! Keep all these events at bay with a reliable broker by your side. Reach out to WesternFX! The industry’s leading Forex broker, we will provide you with the best FX trading guidance and ensure that you take to the top in no time. Call us today to know more!