Foreign exchange is a lucrative market, where it is possible to gain huge profits. The markets are open 24/7 throughout the year due to the time differences between various countries. Moreover, it is the most liquid of all markets. Trading in currency may seem to be tough at the beginning. The sheer number of currency pairs available for trading will make you confused and overwhelmed.
If you are new to forex trading, start with research about what is foreign exchange and how currencies are traded. You can visit currency converter apps or websites to know about the prevailing rates of exchange and how they are calculated.
It is important to note that foreign exchange rates are always quoted in pairs. They denote the value of one currency needed to get Most of the converter apps or websites have a currency exchange calculator that helps you know the value of one currency in relation to the other. For example, if a quote reads EUR/USD 1.23, it means that you require 1.23 US $ to buy one Euro.
The Best currency Pairs
US dollar and Euro is the best currency trading pair in foreign exchange markets. This is the best pair to start trading in forex markets as the rate does not fluctuate frequently. Moreover, brokers charge the lowest spread for trading in this pair because of its popularity and volume of trade.
US dollar and Japanese Yen is another preferred currency pair for trading in foreign exchange. The rates are not volatile but follow a smooth trend, hence it is easy to trade in this pair. Moreover, the spread charged by brokers is very less.
This pair falls under the volatile category and involves greater risks. US Dollar and Great British Pound pair is highly popular among traders because of the large jumps in the exchange rate and profitable pips. However, it is easy to find market analysis for this pair due to its popularity among the traders.
There are many other currency pairs that offer scope for huge profits. Research about the exchange rates of different currencies using a currency converter app, and know the history about the price movements. Then choose a currency that you are interested in trading.