Yeah, it’ true; there have lots of trading instruments in Forex industry! But generally, new Forex traders start their trading process with major currencies! Here, we’ll take a closer look at each of Forex major pairs! In addition, major pairs are: EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD and USD/CHF.
1) The EUR/USD: (The most popular Fx trading pair)
No doubt, EUR/USD is the most popular trading instrument in Forex trading industry! Actually, the EURO area and the US area are the 2 biggest economics worldwide! That means, this trading pair is very reliable to use! As a result, almost all of new Forex traders start their trading through EUR/USD. In addition, another important point of this trading instrument is, overlap between the European and US trading session, so volatility momentum is very high on these sessions!
2) The GBP/USD: (The most dynamic Forex pair)
The GBP/USD is the most dynamic major currency among the Forex major pairs! Since, this major pair moves heavily so, proper money management policies as well as risk management policies and a stable trading mindset are very important when you will use GBP/USD trading pair. Interestingly, GBP/USD is known as “Cable”.
3) The USD/JPY: (The safe haven Forex currency)
Usually, in terms of improbability and uncertainty of Forex market, institutional investors shift for YEN! This is way, Yen is seen as so called ‘Safe haven’ trading instrument. In addition, it is also known as ‘Less risky’ Forex instruments to investors! Whatever, the Japanese economy relies on the rate of Yen and the Bank of Japan has stepped in again and again, this process lead to huge volatility in the Forex rate. (To be continued)