The Most Profitable Currency Pair
Trading in Foreign Exchange typically involves a currency pair. Usually, there are 2 different categories of pairs -- majors and minors. Currencies of two different nations are put against each other to form a currency pair. We assume that you are already clear about the concept of Forex market and the ways in which it operates. |
Understanding the involvement of the major active currencies involved is most important. Once you have chosen a particular pair, it then forms the base for trading purposes. It is almost impossible to trade and exchange with one currency.
There is a choice of currency pairs. You are required to be wise enough o understand which currency has more demand and which has more supply. Examples of currency pairs include EUR/USD, USD/JPY, USD/CHF and GBP/USD. These also fall under the category of majors in Forex. Beginners are advised to consider these pairs initially if they are in search for immediate profit. Slowly once you understand them you can further add additional pairs to your kitty. Currency pairs that show smaller spreads would yield more income as compared to larger spreads.
Always opt for the most favorable currencies since the costs would be less initially.
GBP/JPY is considered to be the fastest moving as well as profitable currency pair. The top most pairs include EUR/USD, USD/JPY and GBP/USD respectively. The other aspect for you to consider is with respect to the trend of currency pairs. Traders need to completely trust the charts and must decide on inner instincts rather than relying on someone else. Forex chart fluctuates every moment, and it is up to you to decide whether you would prefer to eye the most favorable pair or not.
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