Have you ever thought about why Forex trading is one of the most popular sources of income online? It’s no secret that many traders find it challenging and exciting to earn money in this way. Nevertheless, only 5% of traders are seriously making a profit from it.
Why is there a high figure, like 95% of failure rate, when Forex is not so difficult to learn? Well, in principle, Forex is simple, but many traders have to overcomplicate and overthink it.
One of the most significant issues for traders is what is the best and the most accessible currency pair for trading? There are many reasons why trading forex with a specific currency pair at a given time is always a good idea.
However, before we get into the top currency pairs for trading, let’s see what Forex trading is, in the first place, shall we?
Forex trading – detailed explanation on how it works
Forex represents an acronym for foreign exchange and the most lucrative financial market on the planet. There is over $6.6 trillion that is being traded for five working days, nonstop. There are endless opportunities for making money with Forex trading.
To make Forex trading your profitable career, you need to develop a training plan, find a reputable broker, and start with a demo account where you can practice trading. Forex currency trading stands for buying and selling foreign exchange currencies.
How do traders make money from trading?
Forex traders are making money thanks to the price fluctuations during market opening times. You need to know that a currency pair includes two abbreviated currencies, such as EUR/USD.
All other Forex currency pairs abbreviate like that. In this case, where the EUR is the first currency, it is called the base currency. USD, in this case, is the quoted currency because it comes second.
What happens when a trader is trading Forex?
When a trader trades Forex, you get to see two different prices for the base currency and the quote currency. For example, the currency pair EUR and USD may show as 1.19352/1.9311.
The first price will be if you buy the Euro, while the second price is accepting the dollar. However, don’t get confused because the base and quote currency on the trading platform may show up as BUY/SELL.
Let’s say that you want to buy the Euro because you believe that the Euro is stronger than the dollar, and you expect it to rise. If you submit a sell order, you expect that the dollar is more substantial and that the Euro price will fall.
The TOP 10 currency pairs at the moment
So, here is the list of the top 10 currency pairs on the Forex trading market at the moment:
The United States of America, Japan, Canada, Europe, Switzerland, and New Zealand are financially powerful with global high trading volumes. Their currencies have high volatility and good liquidity, which are the two essential and mandatory elements of suitable Forex trading.
However, if you are just a beginner, avoid trading with significant currencies. Instead of that, start with the demo account, then switch to more minor currencies until you gain enough experience and knowledge to do the most significant currency pair trading. Good luck!