FX trading is not only business of the town but also has come out to be the talk of the town. Everyone is looking to bag oneâs share in this profitable niche. Making big money within moments can be a dream coming true and at the same time, losing the whole lot of investment can come out to be dreadful reality? Whether you are a novice or a professional FX trader, the thing of interest is to know the top forex pairs to trade where you have maximum chances of bagging profits and minimum possibilities of losing money.
There are different factors that can impact your decision on the best forex pairs to trade. You have to take into account the currency demand, economic analytic and forecast, liquidity, currency spread, level of confidence of the investors and many other ground realities. Well, throughout the course of FX trading, we get to know some of the best forex pairs to trade. Letâs check them out right away!
This is the most traded currency pair that boasts more than one third of the total volume of the forex transactions. This is because they are related with two major and highly transparent economies. They are easy to predict in most of the circumstances because of their high levels of liquidity. Exploiting the trade derivatives like CFDs and futures comes out to be quite handy while trading this currency pair. Ease and trust associated with this pair makes it top traded forex pair.
After EUR/USD, this comes out to follow as the second best traded forex pair accounting for almost 12 percent of the total FX volumes traded. This pair is highly volatile and unpredictable. Aggressive and professional traders always look for trading this pair to bag some really valuable short term gains. The US and UK markets, their economies and policies keep this pair in the good books of the forex traders.
Australia is one of the largest producers of gold and its importance is reflected in AUD/USD trading. It also involves lesser amount of liquidity. Due to the association with Gold, it is also called the commodity currency pair. The traders can relate ups and downs in gold prices with the forecast of this currency pair.
This is also a commodity currency pair whereby fluctuating oil prices impact it. Being one of the largest oil producers, Canadian currency highly depends on oil prices.
In addition to the above, cross currency pairs where USD isnât involved and exotic currency pairs involving less significant economies as compared with US, are also traded but the best forex pairs to trade are mainly the EUR/USD, GBP/USD, AUD/USD and CAD/USD.
Once you decide best forex pairs to trade, your next task should be to find a good repuated forex brokers to start demo trading. According to ForexEzy.com these are the top 5 forex brokers for 2016. You must choose a fx broker according to your personal needs and repuation of forex broker.
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