There has been another influx of private traders into the market this year, with a focus on forex trading。Brokers are attracting new forex traders with highly leveraged, risk-free demo accounts and in-house training and educational materials provided by brokers.。

What is Forex Currency Trading？

Foreign exchange is a global market for the exchange of currencies, and the simplest form of foreign exchange trading is to guess which currency will rise and which currency will fall.。If you think the euro will fall against the dollar, you sell the euro and buy the dollar。

Conversely, if the euro is expected to appreciate against the dollar, you buy the euro and sell the dollar, and the forecast is correct and you make money。However, forex trading is not only profitable for traders through useful predictions。

Instead, forex traders need to accumulate and learn trading strategies in order to make a successful profit。

How many forex pairs should be traded？

For novice traders, more than 10 pairs is too much, maybe it can be expanded to 12 or even 15, but more than 10 forex pairs will make trading difficult。

As a new forex trader, your primary focus should be on process, not profits。Therefore, focusing on pairing one or two forex pairs at the beginning allows you to familiarize yourself with one or two markets at a time。

With maturity and experience in forex trading, you can increase the number of forex currency pairs that can be traded。
Now, let's take a look at the list of currency pairs available on the Forex market。

What are the best currency pairs to trade in the Forex market?？

There are about 180 fiat currencies in circulation and more than 1,500 listed cryptocurrencies, so there is plenty of room to buy and sell both real and virtual currencies。Cryptocurrency trading is a growing, popular and professional market, but most forex traders still focus on real-world currencies.。As a private forex trader, you can easily trade any currency pair offered by your broker。Many forex brokers will offer more than 50 currency pairs, some even offer 70。

Experienced traders can make money by watching the market closely and trading major, minor and exotic currency pairs, but most new traders will start with more common currency pairs。

The four most popular and best traded currency pairs on the Forex market are:

EUR EUR / USD USD

It is one of the important trading pairs due to its liquidity, as it trades globally。It is popular among advanced traders but not recommended for beginners。Because of its volatility, predicting its movements is not easy。Changes in a day can be many and happen quickly, so it is not suitable for people who are just starting to trade。Trading requires a lot of technical analysis and basic knowledge。

USDDollars/ JPY Japanese Yen

It's the hardest pair to predict, and it's influenced by Japanese and American news.。This currency pair is not suitable for beginners to trade because you need to understand its underlying dynamics and movements。However, if you consider using it, then it is best to use swing trading。In addition, much of the information from financial institutions and banks is inaccurate。

GBPPound Sterling/ USD USD

The currency is highly sensitive to news affecting EUR / USD USD and current UK politics。Many people like it because it triggers a stop loss when there is a resistance breakthrough and may be detrimental to the trader。Long-term trading works best and volatility is predictable, but it's best if you work closely with U.S. analysts。

USD USD / CHF CHF

It is unique in that it flows in the opposite direction to EUR EUR / USD USD。Compared with EUR EUR / USD USD and USD USD / JPY yen, it has the best liquidity; it is also not affected by news and does not often fluctuate too much。It is useful for beginners because you can use it to determine the trend of other currency pairs。It is ideal for novices because it is predictable and less volatile。

Other very common currencies to trade include Australian Dollar (AUD) and Canadian Dollar (CAD)。The most commonly traded currency pair (EUR EUR / USD USD) is significantly more traded than any other currency pair, and its global trading volume is often around 50% higher than the sum of USD USD / JPY JPY and GBP / USD USD。

These major currency pairs are usually active enough to be attractive to day traders and other short-term traders。They are volatile, price fluctuations occur continuously, and there are opportunities for profit and loss every day。

These currency pairs tend to have lower spreads, so trading conditions are more favorable, but that doesn't mean they are suitable for everyone.。

What are the secondary currency pairs that can be traded in the foreign exchange market?？

A minor currency pair is a currency pair that does not include the U.。In this category, the most commonly traded currency pairs include the euro, yen or pound sterling。Some common secondary forex pairs are:

• EUR EUR / GBP GBP
• EUR EUR / AUD AUD
• GBP Pound Sterling / JPY Japanese Yen
• GBP GBP / CAD CAD
• CHF Swiss Franc / JPY Japanese Yen
• NZD New Zealand Dollar / JPY Japanese Yen

These currencies also have short-term volatility and high liquidity, making them popular with day traders and other short-term traders.。It is understandable that forex traders located in one of the regions where these currencies are used usually prefer to use their base currency, and they can make many profitable trades using these so-called secondary currencies。

The US dollar is an important and valuable currency that every forex trader tends to know and monitor, but of course it is also possible to develop profitable trading strategies using secondary currencies。

What is Bizarre Forex Currency Pair？

Bizarre currency pairs include the currencies of developing economies.。They tend to be less traded and therefore less commonly obtained through forex brokers, although major brokers usually offer at least some foreign currency pairs。These include:

• AUD Australian Dollar / MXN Mexican Peso
• GBP GBP / ZAR South African Rand
• NZD New Zealand Dollar / SGD Singapore Dollar
• JPY Japanese Yen / NOK Norwegian Krone

Trading in exotic currency pairs is more difficult。They are less common, less liquid, and spreads tend to be higher。However, they can still be profitable, especially during periods of high volatility caused by unique world events.。

Often, the best traders to take advantage of profit opportunities in foreign currencies are those in regions where the currency is the base currency。If you pay close attention to world events that affect your region, you may be able to buy and sell your own currency during periods of market volatility and make a decent profit。Trading foreign currency pairs is certainly risky, but it can also bring greater benefits than major currencies。

What affects price movements in Forex trading？

Most forex traders will realize that there are several reasons for price fluctuations in forex trading。When trading forex, you should carefully review reports regularly issued by government agencies or the private sector。Economic reports, data and forecasts can immediately influence currency prices in the Forex market。

Of course, world events are also factors that have an impact on currencies。Elections, trade agreements and political turmoil are several factors that avid forex traders pay close attention to。Right now, for example, sterling is likely to fluctuate as Brexit negotiations progress or reach a stalemate, while uncertainty unnerves politicians and citizens alike, opening up potentially profitable opportunities for seasoned forex traders.。

Some questions to keep in mind:

• Technical analysis is key and still plays an important role in Forex trading。Fundamentals also play an important role, but most forex traders use a combination of technical indicators to monitor and predict price movements.。
• Checkpoint difference。Spreads are low for most major currency pairs, but not always。For example, due to the volatility of a particular currency pair, trading USD USD / GBP GBP will bring a higher spread, and wise traders always pay attention to this。
• Pay attention to leverage。Forex brokers usually offer very high leverage, which does not mean that using it all is a good trading strategy。Always use leverage according to a reliable, well-thought-out risk management strategy。

Conclusion

Having some currency pairs can respond to different events in global financial markets。

However, as a new trader, try to focus on 5 to 10 currency pairs, which will provide you with some quality opportunities every month。The more experience you have, the higher the currency pair should be。