Best Currency Pairs To Trade – Best Currency Pairs to Trade in Africa Trading the forex market is difficult and this is the proof why many beginners lose a large part of their investments.
The best place to start is to understand what you are looking for and the best currency pairs to trade. Currency pairs are quotes where two different currencies (base and quote) are used. In this case, the value of one currency is appreciated against another currency.
Best Currency Pairs To Trade
Contrary to what many show when looking for board traders, trading in the forex market is difficult and this is the proof of why many beginners lose a large part of their investments. At worst, some lose all their investments.
Currency Pair Correlations — Forex Trading
The pairs listed here represent some of the world’s largest economies. These are known as majors and are considered popular by traders due to their volumes, tighter spreads and reliability. The world’s leading currency pairs with the highest trading volume in the forex market are:
The Euro/USD currency pair is also known as the fiber and is the most traded currency pair in the world. Many banks, financial institutions, funds and retail traders prefer this above pair because it has the highest liquidity and reasonable volatility and is backed by a reliable economic system.
This pair is also known as the Gopher and is characterized by stable long-term trends. Unlike other currencies, it has a low exchange rate and very predictable trends. For traders, this pair offers brilliant and profitable opportunities and accounts for 17 percent of the forex market trades. It is the second largest pair in the currency market.
This combination is called an odd currency pair because it contains the US dollar and a developing country currency. Novice traders are advised to avoid exotic pairs as they have low liquidity and high volatility with high spreads and risks.
Sentiment Analysis For Forex Trading
This pair is predictable, so a good choice for beginners. It is the least volatile of all currency pairs. To make the most of it, traders must be interested in influential factors, including recessions and economic crises, which play a large role in the value of currencies. Also known as Loonie.
The GBP/USD pair is called a cable and is an ideal pair for beginners. Its movement is straight and stable, but its volatility is greater than that of fibers. The couple makes profitable points with detailed market analysis. Beginners should be wary of the high risk associated with this pair.
The currency pair tends to compare negatively with the EUR/USD and GBP/USD pairs. For starters, however, the Swissy is more predictable than the other pairs listed here. One thing to note is that the pair can be difficult for traders who only use technical analysis in their trades.
Due to the strength of the Swiss economy, the franc is a safe haven for currency traders in case political and economic uncertainty affects other currencies.
How To Choose Currency Pair You Should Trade At Olymp Trade?
In addition to majors, there are also minors, also known as cross-currency pairs. These cross-currency pairs refer to all other major market combinations such as EUR/GBP, EUR/CHF and GBP/JPY.
When choosing the best currencies to trade, it is best to focus on one or two currency pairs and no more.
In Africa, as in the rest of the world, foreign exchange trading is highly competitive and the continent has recorded rapid growth over the past two decades. This is due to the fact that more Africans are becoming more aware of what Forex trading entails.
Mobile devices and other Internet technologies have significantly fueled the growth of foreign exchange trading on the continent, making the sector one of the most dynamic in Africa.
Best Currency Pairs To Trade In Each Trading Session
There are an estimated 1.3 million forex traders in Africa, with South Africa and Nigeria leading the way and also controlling a large portion of the total.
Kenya, Tanzania, Angola, Namibia and Egypt are other countries where forex trading is winning. With this growth, international forex brokers including XM Forex Trading, IQ Option, ForexTime (FXTM), IC Market and Olymp Trade have established themselves in these countries.
Although currency exchange has not yet spread across the continent, it is not banned in any African country. However, some governments have imposed minor restrictions that do not prohibit currency exchange. Restrictions are designed to prevent fraud and other scams.
The most notable restrictions are the maximum transaction amount and the maximum amount that can be held in their forex account. Some African countries prohibit trading with unlicensed forex brokers, and in many countries you can only trade individually and not for anyone else.
Best Forex Pairs To Trade During Each Session
To ensure that your forex trading investments are safe, you should avoid unlicensed forex brokers, as currency scams are rife in African countries like anywhere else.
Again, caution should be exercised when investing large sums unless they fully understand the forex market. With interest in forex trading on the rise, the only guess is that countries without sound regulatory policies will work on them to allow traders to trade safely.
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The Best Forex Trading Pairs In Africa
From real estate to stocks to forex, markets around the world have been affected by the coronavirus. Here we explain the impact of the coronavirus on currency pairs and what the biggest winners and losers have been.
The volatility of the US dollar (USD) has increased during the pandemic, as have several leading currencies, including the euro (EUR) and the British pound (GBP). However, as the world’s unofficial reserve currency and “safe haven”, the USD performed better than some other currencies as investors readily bought the USD during the pandemic.
For example, the USD actually appreciates against the GBP, the New Zealand dollar, the Canadian dollar, the Mexican peso, and the South Korean won. But it has underperformed other popular currencies, particularly the euro and Swiss franc, which are safe havens in their own right.
In the following sections, you will find the ten USD currency cross pairs that were the strongest and weakest according to the performance of the USD against the base currency.
The Best Cryptocurrency Pairs To Trade For The Biggest Profit
For comparison, there are always two currencies in one currency pair. The base currency is on the left and the quote currency is on the right. The quoted price of a currency pair is always how much of the quoted currency it would take to buy one unit of the base currency.
For example, in the CHF/USD pair, the base is the Swiss franc (CHF) and the quote is USD. If the pair rises, it means that the USD, the quote currency, will weaken against the CHF, as more dollars are needed to buy one Swiss franc.
The table below contains data on the best performing USD currency cross pairs between December 31, 2019 and July 31, 2020. These pairs include base currencies that strengthened against the USD.
The table below contains data on the worst performing USD currency cross pairs between December 31, 2019 and July 31, 2020. These pairs include base currencies that weakened against the USD.
Most Traded Currency Pairs In Forex 2020
The Venezuelan Bolivar is in a 100% loss as the currency’s inflation increased by a negative 4099% from July 2019 to July 2020.
Unlike the previous two sections, which offer the ten absolute best and worst US currency crosses between December 31, 2019 and July 31, 2020, the table below shows the performance of ten popular dollar currency crosses – and whether the US has strengthened or weakened against the other base pair.
A profit indicates that the USD has weakened against the base currency in the pair, and a loss indicates that the USD has strengthened against the base currency.
The full impact of the coronavirus on Forex remains to be seen. Commodity currencies such as the Australian dollar, New Zealand dollar and Canadian dollar all felt the impact
Currency Pairs Correlation Strategy
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