In general, the process of trading many currencies is the Forex market. One of the forex trading strategies is always done by a pairs system is this method. In getting the core of Forex, you need to know the best pairs to use in trading. As a trader, it is a must that you know about these pairs and undertand them as well. The best pairs are listed below:
– EUR/ USD (Euro/ US Dollar)
– GBP/ USD (British Pound/ US Dollar)
US Dollar/ Japanese Yen – USD/ JPY
– USD/ CHF (US Dollar/ Swiss Franc)
(US Dollar/ Canadian Dollar – USD/ CAD
(Australian Dollar/ US Dollar – AUS/ USD
The most commonly used base currencies are the following:
Euro- EUR/ CAD, EUR/ JPY, EUR/ CHF, EUR/ GBP, EUR/ USD
British Pound – EUR/ USD, GBP/ JPY, GBP/ CHF, GBP/ USD
US Dollar – USD/ CAD, USD/ JPY, USD/ CHF
The first currency of the pair which is called the base currency, is the one being compared to the second currency. The second currency, or the currency being compared with the base currency on the other hand, is called the counter or quote currency. The base currency is always equal to 1 monetary unit when one is making a comparison between currencies.
Putting a restriction on the pairs will lessen the time used more than what is expected in trades with such nature. By this, you may also determine the currency which is tougher in the market. It also will help you to make an analysis on the trend of the market. It would also be simple and effortless to penetrate in and out of trade aptly.
However, you may also focus on different forex trading strategies by taking the traded pair EUR/USD and GBP/USD which is the best pair in the Forex market.