If you are interested in Forex trading, you will want to know which currency pairs are the best to start with or to buy and sell even after you are a professional. We will explain the matter in depth and also give you the answer to which currency pairs I need to trade question.
Currency pairs: Basics
On Forex, all currencies are presented in currency pairs. As you can see, there are two of them and the value is presented as the relationship between their prices. Currency trading is commonly expressed in values such is EURUSD 2.14 which simply means that one EUR has a value of $2.14. This is just a plain example and the situation will be different once you start trading. This example also teaches you that EUR is the primary currency in the equation.
It isn’t a secret that the two best currencies to trade are EUR and USD. United States dollar is the most common currency in the world and it represents the biggest economy. As such, it is likely that you will use it for trading at one point. On the other hand, euro is a currency of the European Union, which also has a massive economy and also one of ‘’stronger’’ currencies in the world.
We already covered USD and there is no need to explain it once again. But, JPY stands for Japanese Yen and you will see that it doesn’t have a high value. On the other side, it is one of ‘’weaker’’ currencies on the planet. But, the Japanese economy is massive and it changed all the time. All of this made JPY a currency to pay a close attention to.
GBP stands for Great Britain pound and it is one of the strongest currencies available on the planet. It is also stable and rarely affected by the changes across the world. In a relationship with the USD, this currency pair has been one of the most important and the most profitable for a long period of time.
CHF is a Swiss franc and this currency is native to Switzerland a small country in Europe. However, Switzerland is commonly ranked as one of the richest counties in the world and as such trading using CHF is more than just recommended. Basically, you will have a reliable and strong currency paired with USD which is the most common on the planet.
The final word
We gave you the best examples of currency pairs that should assist you with Forex trading. There is a generic rule we can mention in our conclusion. All major currencies, when paired, are the best currency pairs to trade on Forex. After all, they are the most common, they are the strongest and they are the most profitable choice you will be able to make. Also, they are the safest to choose from.