Invest in Currency Market

On the currency market, one can trade a great variety of currency pairs, which are basically divided into three major groups:

• Majors are the most popular pairs featuring the USD and currencies of other influential countries (EURUSD, GBPUSD, USDJPY, etc.).
• Crosses are the pairs without the USD (AUDCAD, EURJPY, AUDNZD, etc.). As a rule, they are less active than majors, but may sometimes behave quite surprisingly while being traded.
• Exotics are low-liquid pairs with large spread, movements of which are not easy to forecast. These pairs feature the USD and currencies of the countries, which are not among advanced global economies (USDRUB, USDMXN, etc.).

Several criteria may influence the choice of currency pairs for trading:

• The pair must be easily analyzed and forecasted, while force-majeure risks must be dialed down.
• When it comes to intraday trading, it’s better to choose highly-volatile currency pairs.
• Consideration must be given to the time for trading. For example, USDJPY is more active during the Asian trading session, while EURUSD – during the European and American ones.
• It’s not recommended to choose pairs with large spreads.

Every trader chooses trading instruments based on their trading strategies, experience, and attitude to risks. The most popular currency pairs with beginners are EURUSD, GBPUSD, AUDUSD, and NZDUSD, while more experienced traders prefer a wider range – EURUSD, GBPUSD, AUDUSD, NZDUSD, USDCHF, USDJPY, EURJPY, GBPJPY, and AUDJPY.