Forex currency pairs

When you trade Forex you will hear the term Forex currency pairs, if you are new don't let this confuse you, it will become second nature soon enough. The reason they're pairs is because there are two of them, and they are constantly fighting each other. The Euro against the United States dollar looks like this EUR/USD when you trade it. The base currency is the first one you see, so that means the Euro is the base currency in this pair, this is the most traded pair out of them all.

All currencies have a spread, that is the difference between the bid and ask price, the major currencies have the tightest spreads and the exotics have wider spread because of fewer people trading them or less speculation. We trade mostly the major currencies in the live trading room, more than enough liquidity to get the job done. Here is a list of 16, the first six are the majors. EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, EUR/JPY, GBP/JPY, AUD/JPY, EUR/GBP, EUR/CHF, EUR/AUD, NZD/JPY, NZD/CAD, CHF/JPY, EUR/CAD.

If you are new and can't figure out what currency to trade, have a look at some charts, and you will soon learn that the ranges of the currencies are very different. The GBP/JPY has to be one of the favorites of the exotics, because of the large pip ranges in a short time, but you will have to deal with the wider spread.

My favorite currency pairs are the USD/CHF and the GBP/USD, l guess it's just whatever you get used to.

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