Forex trading is all about the exchange or conversion of one currency for another. Unlike traditional stock trading, the forex market remains open for longer—it operates for 24 hours a day and is open from Monday morning in New Zealand to Friday afternoon in New York. This makes fx trading a more viable choice for those who prefer or can only work from the standard trading hours of 9:00 am to 4:00 pm. No matter where you are in the world and as long as you remain up to date with the latest forex trading news, you can buy and sell currencies at your own convenience.
Before you get started in fx trading and before you decide on the best forex trading platform to use, you must choose the currency pairs in which you’ll trade. Here are some of the most profitable pairs, which are sure to give you the most chances of success:
- USD to EUR
Converting US dollars to European euros is one of most widely done transactions in the forex market, and this pair is the top most widely traded pair. Right now, the euro is recognized as the official currency of the majority of the European Union member countries, such as Austria, Germany, Ireland, Greece, Italy, Malta, Portugal, Spain, and more. The USD-EUR pair is one that is greatly influenced by political changes that affect either one or both of these currencies in relation to each other.
- USD to JPY
The Japanese yen is the official currency of Japan and is regarded as a reserve currency next to the USD, the euro, and the GBP. The value of the yen experiences a regular number of fluctuations, but certain policies of the Japanese government keep the exchange rates under control, such as their practice of buying and selling the currency in mass quantities. They do this in order to keep the export market in a competitive condition. If you’re interested in exchanging USD to JPY, you can capitalize on these fluctuations and earn large profits by knowing exactly when to buy in.
- GBP to USD
The British pound sterling is the UK’s official currency; like the euro, it is used in a number of countries, such as Scotland, Wales, and England. Although the UK was an official member of the European Union until just recently in 2016, it never actually switched over to the euro, unlike other Western European countries.
The GBP is the world’s third most traded currency, right after the USD and the euro. In recent years, two major events have greatly shaken up and influenced the GBP—the 2007–2008 recession and Brexit in 2016. The latter event caused the GBP to lose value by as much as 10% in one day and 20% in months.
Despite these developments, the USD-GBP currency pairing is still one of the strongest and most widely traded pairs in the world.
- AUD to USD
Australia is home to the Australian dollar currency, and its pairing with the USD is the sixth most widely traded pair in the global market. The AUD ‘s value is closely associated with that of the Canadian dollar, due to Australia and Canada’s interdependent economies and commodities market. If you’re interested in exchanging USD for AUD, make sure you keep track of the price of coal and iron ore, as these are the commodities that Australia mainly exports.
