Foreign exchange is a relatively stable market, with most currency pairs moving less than 1% daily, meaning the value changes very little. However, because of this low level of volatility, many Forex traders utilize the huge leverage to greatly increase the value of these price movements. This article will briefly describe what currency pairs are, and will assist you with identifying the best Forex pairs to trade. It will also explain what Forex majors are and whether they will work for you. What Is Forex Trading? Forex trading – or foreign exchange trading – is all about buying and selling currencies in pairs. Other benefits of trading cross pairs include: 1. Carry Trading. This fundamental strategy is perfectly applicable to cross currency pairs. A trader may short sell the currency with a lower interest rate to buy a currency with a higher interest rate. The difference between these rates constitutes their swap or the profit they gain. For example, if you see EUR/USD = 1.1046, it means that you will need 1.1046 U.S. dollars (quote currency) in order to buy one euro (base currency). When trading forex, traders buy one currency and sell another at the same time. Currency pairs have two prices: the bid price and the ask price, which form a forex quote. Forex: IQ Option offer forex trading on a small number of currencies. Spreads are on the high side and the brand do not excel in this area: Forex.com are a leading forex broker. Offering the largest range of currency pairs (80+) and some of the tightest spreads in the industry. GBPUSD Spread; 5 pips: 1.0 Var: EURUSD Spread; 14 pips: 0.7 Var Some platforms such as IQ Option offer lucrative forex trading options, and free demo accounts, a must-have tool for forex beginners. Forex Pairs to Trade. It should be noted that each of the fiat currency pairs essentially reflects the economies of the two nations. This makes managing a currency pair to be a complex and taxing process. It is best pair to trade IQ Options so it could be an excellent choice for beginners. This pair has the best liquidity and also the highest flow. AUD / USD and USD / CAD. Here, liquidity is less and there can be unexpected turns. These currency pairs depend on the prices of oil and gold, so it should be taken into account. GBP / USD The main highlights of Forex trading: Firstly, sign up to IQ Option trading platform. If you are a newbie in Forex trading, we recommend you to start with a Demo account (with rechargeable virtual $ 10 000), so you don't have to worry about losing your real money. Trading currencies is a very lucrative career and many forex traders will agree to that statement. Currencies traded by these forex traders always come in pairs because you automatically buy a currency while selling a different currency and vice-versa. When trading digital options on IQ Option, you can choose among different financial instruments. These include forex, commodities, stocks and cryptocurrencies. 92% of traders opt to trade forex options compared to the other markets. The main reason is that these options have better returns that usually exceed 80%.
[index]