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Which Currency Pair Is Most Profitable In Forex

By on May 28, 2021

The information in this site does not contain investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. The value of the Hong Kong dollar is pegged to the US dollar in a unique system known as a linked exchanged rate. The Hong Kong dollar is allowed to fluctuate within a band of HK$7.75 to HK$7.85 to US$1, and traders can take advantage of any price movements within this band. The yuan has largely been decreasing relative to the US dollar since the start of the US-China trade war. In turn, expensive oil means that the Canadian dollar will likely strengthen due to the close ties between the Canadian dollar and the price of oil.

which currency pair is most profitable in forex

On the daily timeframe, the difference between the fastest 0.49% mean change of GBP/JPY and the slowest 0.32% change of USD/CHF was not particularly big. On the monthly timeframe, forex trading the situation was different, especially when comparing the median change. The change of 2.46% for NZD/USD was more than two times bigger than 0.85% for EUR/GBP.


Are Major Forex Pairs The Best To Trade?

Operations account for about 12% of the total trading volume on the foreign exchange market. The pair pound/dollar is characterized by high volatility and instability of prices. Therefore, it is popular and the most traded currency amongst professional traders focused on short-term aggressive strategies. The pair quotes are sensitive to fundamental factors and statistical data on the state of the British economy and the actions of the Bank of England, as well as to macroeconomic data in the USA. “The Gopher” is a combination of the US dollar and the Japanese yen. It is one of the most popular forex pairs in the world due to the prominence of the JPY throughout Asia and the USD worldwide.

which currency pair is most profitable in forex

A Trailing Stop requests that the broker moves the stop loss level alongside the actual price — but only in one direction. Desktop platforms will normally deliver excellent speed of execution for trades. All the major currency pairs that can be found in the modern world are equipped with tight spreads. In general, knowing your country’s political and economical issues results in additional knowledge which you can base your trades on.

How To Trade The Forex Market

We have mentioned spreads a few times throughout this guide on how to make money. For those unaware of this term, the spread is simply the difference between the bid and ask price of the pair you are trading. For instance, a short-term trader will focus on the most traded currency pairs with the tightest bid/ask spread. CHF is the official currency of Switzerland and it has the highest ranks for being more traded in the forex market. Step by step process on calculating and creating a currency pair correlation report from start to finish.

How Much Money Can I Make Forex Day Trading?

Fundamental analysis is analysis that is based on economic conditions, both within specific countries and globally. If you want your day trading and swing trading the currency market exotic currency pair to make you a whole bunch of money, then you should definitely make sure it is volatile enough to work well.

  • Now that you have a funded eToro account, you can proceed to search for the forex pair that you want to trade.
  • This is because exotics offer more trading opportunities as they are much more volatile than their major and minor counterparts.
  • For example, in most days, traders receive data from either the EU or the EU countries and from the United States (We touch this point in our “RingTheBell“).
  • For example, if American interest rates are low, USD would probably weaken against AUD and it would cost more US dollars to buy one Australian dollar.
  • We talk about how stop-loss and take-profit orders can mitigate the risks of trading forex later in this guide.
  • But remember, while high volatility might mean big payouts, it also means big losses if you turn out to be not so lucky.
  • If you want to attempt to make money using forex right now – in the tutorial below we show you how to get started with eToro.
  • As we have already said, when deciding which currency pairs to trade, you will want to consider your trading approach.

Work only with well-known forex providers to lessen the chance that you lose money in a hack or breach. Before you begin forex trading, you’ll need to choose a broker to execute your trades for you. Some of the qualities you’ll want to search for when choosing a forex broker include. Yen is considered to be held under a “dirty float” regime thanks to the Japanese government’s policy of active stability intervention.

What People Think About 4 Keys To Profitable Forex Trend Trading

I’ll admit that trading currencies is quite different from purchasing a home, but the idea is the same – you need to understand where your money is going. Much in the same way as the Fed and ECB, the Bank of Japan sets the interest rates for the Japanese economy which, in turn, affects the value of the yen relative to the US dollar. The price dynamics of USD/JPY can be predicted by focusing on the important forex trading economic data. By the way, the prize of spectator sympathies, no doubt, would also have been accrued to it. It accounts for over one-third of the total volume of transactions on Forex. This is due to various factors, the main of which are the scale and transparency of EU economies and the US. TheEUR/USDcurrency pair tends to have a negativecorrelationwithUSD/CHFand a positive correlation with theGBP/USD.

Now that you have a funded eToro account, you can proceed to search for the forex pair that you want to trade. The easiest way to do this is to use the search box at the top of the page.As we covered earlier, it’s best to stick with major pairs when you are first starting out. There are many ways to approach the forex trading space – with several strategies focused on specific durations. For example, scalping involves opening and closing multiple positions throughout the day with the view of making small but frequent gains. If you do not want to rely on a third-party trader or robot, you will need to learn the ropes of technical analysis. This means being able to read and interpret charts and pricing trends.

Best Currency Pairs To Trade

Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface. , the foreign exchange market, also known as the currency or foreign currency market, is where the money is. By comparison, the approximately $700 billion a day bond market and $200 billion a day in stock trading worldwide appear relatively small in size. The total daily value of all the stock trading in the world equals just about one hour’s worth of trading in the forex market every day. Investors can indeed generate profits even with their currency pairs are making small moves. This is known as scalping, and you must be prepared to take a considerable measure of risk in order to reap in small benefits.

If you are not in a position to take any risks, you can think of selecting this as your best Forex pair to trade, without it causing you too much doubt in your mind. To simplify things, here are the ten most traded forex pairs trading courses online on the market. As most forex traders already know, scalping strategies involve short-term transactions to bring profit. It is unlikely that someone with a profitable signal strategy is willing to share it cheaply or at all.

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Nowadays, in this category we can include EUR/USD, USD/CHF, GBP/USD, and USD/JPY. These are the major pairs traded by the majority of the banks all over the world and also by all important institutions and traders, being the most followed by scalping fans. What is important regarding this category of currencies for scalpers is that they move slowly in the markets and that they have the biggest amounts of trading in terms of volume. Together they account for more than 70% of the total turnover of the Forex market.


IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not stock market simulator have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.


The number of trades done in this market is higher than any other currency pairs. The fourth currency pairs, which are highly liquid and are highly stocks trading training profitable are the AUD/USD and GBP/JPY. The turnover of this pair is higher than other minor currency pairs because of its high volatility level.

Most Traded Currency Pairs

This simple risk-controlled strategy indicates that with a 55% win rate, and making more on winners than you lose on losing trades, it’s possible to attain returns north of 20% per month with forex day trading. Most traders shouldn’t expect to make this much; while it sounds simple, in reality, it’s more difficult. While trading a forex pair for two hours during an active time of day it’s usually possible to make about five round turn trades using the above parameters. If there are 20 trading days in a month, the trader is making 100 trades, on average, in a month.

Technical analysts believe that the collective actions of all the participants in the market accurately reflect all relevant information, and therefore, continually assign a fair market value to securities. You should be able to evaluate the trading charts closely in order to identify a good entry point. Don’t be swayed by emotions to trade beyond your profit or loss target. If you were to answer the question of what is the most trending currency pair based on all the data in this guide, it would make sense to say that it is either GBP/JPY or NZD/USD. However, it should be noted that the latter usually involves lower spreads. It means that an average candle on these pairs’ charts is likely to be longer than on the charts of other currency pairs.

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