Best Currency Pairs to Trade with Forex

Most of the information new traders will find in regards to trading secrets pertains to the major forex pairs and the very best times of day to trade them. Unfortunately, this information may offer some benefits, but there is not much that we teach new traders go to make money trading these specific currency pairs. As with any market, there are lead indicators that can be very useful. For short term traders, it is important to make sure trades are made in the direction of the broader markets. The best bet for any trader, new or experiences is to trade the stocks or currencies that are outperforming others in the overall market.

With the Forex market, the lead indicator that traders should focus on is the Dollar Index. This is an index that will measure the current value of the US Dollar compared to six popular foreign currencies. This can provide details as to what trades will be the best. One of the most asked questions by new traders pertains to what the best currency pairs are to trade and while there is not a definitive answer, traders can make their decision based on their own trading styles. For day traders, EUR/USD will have the lowest spread and it is the preferred option for most day traders. Other top options are GBP/USD and USD/JPY.

For those that prefer long time frames and do not enjoy day trading, there are more options that are available. The best thing to do is to analyse trends and get the latest information on any currency value changes. As a long term trader, there can be many changes in value over the term of the trade, so it can be a bit more difficult to choose which pairs are the best for trading.

New traders will often stick to the most popular, which means the EUR/USD trade will be preferred. As traders gain more experience and start to understand trends, they will see that there are multiple options and there really is no best currency pair. It will all depend on the style of the trader as well as their trading budget. Over time, new traders will come to learn what pairs will provide better chances at getting returns, but there is no cardinal rule as to what pairs to begin trading.

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