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How to select the Best Currency Pair for Investment?

skihav
Feb 23 at 13:59
801 posts
Only analyze. This is not easy enough, but this is how a trader gains experience.
ceceliagreerr
Mar 01 at 06:50
30 posts
If you are planning to select a currency pair for trading in the forex market, I’d suggest you go for a liquid pair as they are combinations of two large economies and offer stability to a certain extent as well as are liquid and facilitate lower spreads in comparison to the illiquid pairs. Some of the heavily traded currency pairs are USD/EUR, JPY/USD, AUD/USD, GBP/USD etc.
Gavinrarad
Mar 03 at 13:07
23 posts
All the currency pairs might be considered as the best ones. It doesn't matter which one you would choose, the matter here is that your strategy would work for this currency pair or maybe couple of such ones. I believe traders shouldn't concentrate their attention on such minor things. They mean nothing.
To my mind, such a choice is inherent to stocks for example or maybe ETFs and something like that. In this case you can ask which stock or at least which industry is the best. Here the answer is simple, the bet industry for stock market is IT.
Always remember about the diversification of your portfolio, it has to be variable.
croisssan
Mar 03 at 16:37
939 posts
Sometimes I use tips from Amarkets analysts for work. It seems to me that sometimes they give quite useful information.
Diptote
Mar 10 at 07:22
15 posts
Broadly, currency pairs are divided into 4 types - major, minor, regional and exotic. While choosing a currency pair, traders should choose pairs that have high liquidity and less volatility. Out of the four categories, major pairs make the best currency pairs to trade. They include pairs like EUR/USD, USD/JPY, USD/CAD, and GBP/USD.
skihav
Mar 10 at 09:42
801 posts
As an option - try to solve it on a demo account. I think that this is the most correct option for testing.
Briosody
Mar 11 at 05:36
44 posts
There are many factors to consider before choosing a currency pair. Some of those factors are-

- Liquidity: pairs with high liquidity and low/medium volatility are best pairs to trade

- spreads: choose pairs with low spreads. It reduces the cost of trading.

- Volatility- avoid highly volatile pairs. They make trading risky.
Thus, you should do your own research. You can also consider other factors like your trading style and goals while choosing currency pairs. According to me, EUR/USD, USD/JPY, and GBP/CHF make excellent pairs to trade.

Gewgaw
Mar 14 at 06:38
34 posts
A trader should consider looking into the liquidity and volatility of the currency pair they want to trade. Traders should prefer trading pairs with high liquidity and low volatility. The major currency pairs are most popular among traders and are more stable than minor and exotic currency pairs.
Akasuki
Mar 16 at 12:22
564 posts
TanEric posted:
Can anyone help me in knowing the best currency pairs for trading in the forex market? I am dilemma please help me or share any link which could help me in knowing that.
If you are a newbie; then start with EURUSD trading pair! Don’t focus on the multiple pairs in your early stage of trading! Besides, try to avoid the exotic trading pairs!
skihav
Mar 16 at 17:01
801 posts
I think that the most correct option is to try to do something on a demo account. This is pretty important.
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