Forex offers a trader a wide range of options, including the ability to operate with shares, commodities, currencies, and more. Every category has a wide range of options, so a trader can pick one or more that appeal to him the most. Several traders favor dealing in different currencies. Every bid in the foreign exchange market is made using dollars (USD). One form of currency is a good, while the other is money. You purchase the second half if you sell the first, and vice versa. That can be done automatically if you utilize a forex forecaster.
When traders use currency pairs, the same thing occurs. Before purchasing a pair, they first sell one. When the price is high, they sell it, and when the price is low, they buy it.
3 groups of pairs
1) Majors
· Include all pairs if there is a dollar of USA:
· Euro (EUR) + US dollar
· Great Britain pound (GBP) + USD
· Australian dollar (AUD) + USD
· New Zealand (NZD) + USD
· USD + Japanese yen (JPY)
· USD + Swiss franc (CHF)
· USD + Canadian dollar (CAD)
· There is no difficulty to work with them, except USD + CAD, because of a problem to forecast by forex advisor only night scalping will assist to deal with this pair.
· USD/CHF has a weak stability of changing
· USD/JPY requires a more profound analysis
· Central bank intervention often takes place in last 2 pairs
2. Crosses
· Pairs without USD
· Less active
· Australian dollar (AUD) + CAD, CHF, JPY, NZD,
· Canadian dollar (CAD) + Japanese yen (JPY)
· Swiss frank (CHF) + (JPY)
· Euro (EUR) + AUD, CAD, CHF, GBP, JPY, NZD
· Great Britain pound (GBP) + AUD, CHF, JPY
· New Zealand dollar (NZD) + JPY
· Preferable couples are with yen, except with CAD and CHF.
· Crosses have many surprises: not recommended for beginner traders with little experience in technical analyses.
3. Exotics
· All other combinations of currencies like USD + RUB, USD + MXN, CAD + DDK and so on
· Exotics are unpredictable, that is why it is stressful to deal with them
· Experienced traders like taking risks sometimes and choose exotics, but their approach must be rational and they should know for sure what to do.
· Which currency pairs are most useful？
· There is a belief that every currency pair with a strong signal is suitable for trading. Some people develop a special bond with one pair and only use it. That is not a successful forex tactic. People are constrained when they pass up free opportunities.
· In actuality, there are a ton of options. When trading currency pairings, the regulations are the same for all transactions. A breach of the support line serves as a sell signal. It is worthwhile to locate a solid support line and enter a short position following the breakout. A trader should set a stop loss before trading.
When to trade？
When a pair makes an intense signal.
There are 3 main sessions:
· London – works from 8 am to 4 am GTM
· New York – works from 8 am to 4 pm EST
· Asian – from 7 pm to 3 am EST
In the event that both the London and New York stock exchanges are open, the currency market is the most volatile (from 8 am to 1 pm EST). Then, once the New York Stock Exchange closes at 4 p.m. EST, currency moves incredibly slowly. Yet, after a few hours, the markets in Japan and Australia open for business, and the forex is once more bustling with activity.
In order to be able to predict what might happen during a specific period of time, traders typically adhere to an economic calendar. All pairings begin moving when the forex market is open. It doesn’t really matter which session is active at the moment. A trader has the option to favor any pair that he believes would be successful.
Everyone chooses for himself what they wish to work with. If he has the right tools and the ability to focus his attention, he can analyze only one, two, or more.