Introduction to Major Currency Pairs
One of the most important things to understand when you want to enter the forex market is currency pair. There are several major currency pairs commonly traded by forex traders. In this part, we are going to take a look at these major currency pairs and the average daily range of these currency pairs. Shall we get started?
The first and probably the most traded currency pair is EUR/USD (Euro vs. US Dollar). It is a very liquid currency pair with an average daily range of 100 pips. If you are relatively new to forex trading, this is the best currency pair to study first. Not only will you be able to understand EUR/USD quickly, you can also find a lot of forex trading strategies designed for trading EUR/USD.
GBP/USD or Great Britain Pound vs. US Dollar is another widely trader currency pair. The risks of trading GBP/USD are often considered high because the pair is very volatile and has a daily range of 150 pips. Until you have certain amount of experiences trading forex, you should avoid trading GBP/USD.
USD/JPY is also a popular currency pair. The US Dollar vs. Japan Yen pair is often considered unique, because you can see its movement quite the opposite of general market movements frequently. With a daily range of 100 pips, you can certainly make big money trading USD/JPY once you mastered this currency pair.
Now that you know several popular currency pairs, you can look into the right forex trading strategies for each of them and get started right away.