The best currency pairs to trade for beginners are not a walkover, as it might seem at first glance. The main factor is considered to choosing the best currency to trade and it is including volatility, spread, trading strategy and the level of difficulty of forecasting the course.
There is a huge variety of currency pairs available for trading in the forex pairs with the lowest spreads. Most often, it is ignoring the other instruments, traders open positions on all known EUR/USD and GBP/USD. These are one of the most traded currency pairs in the world.
There is a large number of other popular currencies. It is depending on the fundamental characteristics, currency pairs are divided into 3 groups the following:
Major currency pairs
Currency pair is most profitable in Forex and top traded currency pairs are including the U.S. dollar and the currency of one of the most significant and economically developed countries such as EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD, USD/CHF and USD/CAD.
Together they account for more than 70% of the total turnover of the Forex market. The top currency pairs are characterized by the highest liquidity of transactions, global popularity and a huge number of players.
Cross-currency pairs
Pairs are formed without the US dollar and this is the point of view of trading activity, they are behind.
This group is including the following popular currency pairs such as AUD/CAD, AUD/CHF , AUD/JPY, AUD/NZD, CAD/JPY, CHF/JPY, EUR/AUD, EUR/CAD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/NZD, GBP/AUD, GBP/CHF, GBP/JPY and NZD/JPY.
This list is not exclusive and there are more traded currency pairs. All of these popular cross-currency pairs are used in trading. For classic trend trading, the most preferred and the best currency pairs are EUR/JPY, GBP/JPY, AUD/JPY, and NZD/JPY.
Exotic pairs
Currency pairs have represented the intersection of currencies of countries less significant in economic terms with the U.S. dollar and between each of them.
The volumes of trading currency pairs are small and these names such as USD/RUB, USD/MXN, EUR/DDK, and many others.
These currency pairs are specifying by low liquidity, high volatility, high spread, and risks.
The profitability of transaction assets is one of the inevitably susceptible to decline. The exotic currency pairs are imperfectly amenable to technical analysis and forecasting. This pair of trends is very difficult.
