Pares de divisas

Pares de divisas

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Pares de monedas Una garantía con un precio que depende o deriva de uno o más activos subyacentes. Un asesor de política económica que promueve políticas monetarias que implican el mantenimiento de tasas de interés bajas, creyendo que. Activos altamente líquidos mantenidos por instituciones financieras para cumplir con obligaciones a corto plazo. Coeficiente de cobertura de Liquidez. La ventaja competitiva que una empresa tiene sobre otras empresas de la misma industria. Este término fue acuñado por renombrado. Un crédito fiscal en los Estados Unidos que beneficia a ciertos contribuyentes que tienen bajos ingresos de trabajo en un año fiscal determinado. Pases de divisas comerciales Copyright 2015 FX Academy Ltd Riesgo: FX Academy no se hace responsable de ninguna pérdida o daño resultante de la confianza en la información contenida en este sitio web, incluyendo noticias de mercado, análisis, señales comerciales y revisiones de brokers de Forex. Los datos contenidos en este sitio web no son necesariamente en tiempo real ni precisos, y los análisis son opiniones del autor y no representan las recomendaciones de FX Academy ni de sus empleados. El comercio de divisas en margen conlleva un alto riesgo y no es adecuado para todos los inversores. Como producto apalancado, las pérdidas pueden exceder los depósitos iniciales y el capital está en riesgo. Antes de decidir negociar Forex o cualquier otro instrumento financiero, debe considerar cuidadosamente sus objetivos de inversión, nivel de experiencia y apetito por el riesgo. La correlación de pares de monedas en el mercado Forex: Pares de divisas cruzadas Como comerciante de divisas, si comprueba varios pares de divisas diferentes para encontrar las configuraciones de comercio, debe tener en cuenta la correlación de pares de divisas, debido a dos razones principales: 1- Evita tomar la misma posición con varios pares de divisas correlacionados al mismo tiempo y así no aumenta el riesgo. Además, evita tomar posiciones opuestas con los pares de divisas que se mueven unos contra otros, al mismo tiempo. 2- Si conoce las correlaciones de pares de divisas, puede ayudarle a predecir la dirección y el movimiento de un par de divisas, a través de las señales que ve en los otros pares de divisas correlacionados. Ahora explico cómo la correlación de pares de divisas ayuda. Empecemos con los cuatro principales pares de divisas: EURUSD; GBPUSD; USDJPY y USDCHF. En ambos de los dos primeros pares de divisas (EURUSD y GBPUSD), el USD funciona como el dinero. Como saben, la primera moneda en pares de divisas se conoce como la mercancía y la segunda es el dinero. Así que cuando usted compra EURUSD, significa que usted paga USD para comprar Euro. En EURUSD y GBPUSD, la moneda que funciona como el dinero es la misma (USD). La mercancía de estos pares está relacionada con dos grandes economías europeas. Estas dos monedas están altamente conectadas y relacionadas entre sí y en el 99% de los casos se mueven en la misma dirección y forman las mismas señales de compra / venta. Recientemente, debido a la crisis económica, se movieron un poco diferente, pero su sesgo principal sigue siendo el mismo. Qué significa eso? Significa que si el EURUSD muestra una señal de compra, el GBPUSD también debería mostrar una señal de compra con pequeñas diferencias en la intensidad y forma de la señal. Si analizas el mercado y llegas a esta conclusión de que debes ir corto con EURUSD, y al mismo tiempo decidiste ir por mucho tiempo con GBPUSD, significa que algo está mal con tu análisis, y te equivocas al menos con uno de Sus decisiones. Por lo tanto, no debe tomar ninguna posición hasta que vea la misma señal en ambos pares. Por supuesto, cuando estos pares realmente muestran dos direcciones diferentes (lo que rara vez ocurre), será una señal para el comercio EUR-GBP. Te diré cómo. Por lo tanto, USD-CHF y USDJPY se comportan de manera similar, pero no tan similares como EURUSD y GBPUSD, porque en USDCHF y USDJPY, el dinero es diferente. El franco suizo y el yen japonés tienen algunas similitudes porque ambos pertenecen a los países consumidores de petróleo, pero el volumen de los oficios industriales en Japón, hace que el yen sea diferente en comparación con el CHF. Generalmente, cuando analizas los cuatro pares de divisas principales, si ves señales de compra en EURUSD y GBPUSD, deberías ver señales de venta en USDJPY. Si también ve una señal de venta en USDCHF también, entonces su análisis es más confiable. De lo contrario, usted tiene que revisar y rehacer su análisis, o al menos esperar a otra configuración de comercio. EURUSD, GBPUSD, AUDUSD. NZDUSD. GBPJPY. EURJPY, AUDJPY y NZDJPY generalmente tienen la misma dirección. Simplemente su patrón de movimiento a veces se vuelve más similar entre sí ya veces menos. ¿Qué prefiero? Si encuentro una señal de venta con EURUSD y GBPUSD y una señal de compra con USDJPY, prefiero tomar la posición corta con uno de los EURUSD o GBPUSD porque los movimientos a la baja son generalmente más fuertes. No tomaré la posición corta con EURUSD o GBPUSD y la posición larga con USDJPY al mismo tiempo, porque si cualquiera de estas posiciones va contra mí, la otra hará lo mismo. Así que no doblo mi riesgo tomando dos posiciones opuestas con dos pares de divisas que se mueven uno contra el otro. Cuando hay una señal formada con un par que tiene que ser confirmada para formar una configuración comercial, me refiero a los pares de divisas correlacionadas o pares de divisas cruzadas y busco la confirmación. Por ejemplo, veo una Divergencia MACD en USDCAD gráfico de cuatro horas, pero no hay una ruptura de apoyo cercano en USDCAD cuatro horas o un gráfico de una hora. Quiero tomar una posición corta, pero sólo necesito una confirmación. Si espero la confirmación, puede llegar a ser demasiado tarde y puedo perder la oportunidad. Comprobar un par de divisas correlacionadas como USDSGD y si veo un desglose de soporte en él, tomo la posición corta con USDCAD. Ahora la pregunta es por qué no tomo la posición corta con USDSGD y uso su apoyo a la ruptura para ir corto con USDCAD? Lo hago porque los movimientos de USDCAD son más fuertes y más rentables. Yo uso USDSGD sólo como un indicador para el comercio USDCAD. Sucede que usted toma una posición con un par de divisas, pero no funciona correctamente y no sabe si fue una buena decisión o no. Por otro lado, no ve ninguna señal aguda en ese par de divisas para ayudarle a decidir si desea mantener la posición o cerrarla. En estos casos, puede comprobar un par de divisas correlacionadas y buscar una señal de continuación o reversión. Le ayuda a decidir sobre la posición que tiene. A veces, algunos pares de divisas correlacionados no se mueven de la forma en que se supone que. Por ejemplo, EURUSD y USDJPY subir al mismo tiempo, mientras que por lo general se mueven entre sí. Puede ocurrir cuando el valor del euro sube y el valor del USD no tiene un cambio significativo, pero al mismo tiempo el valor del JPY disminuye, por alguna razón. En estos casos, puede utilizar la siguiente tabla para encontrar y cambiar el par de divisas que su movimiento se intensifica por un movimiento inusual en otros dos pares de divisas. En este ejemplo, si EURUSD y USDJPY suben al mismo tiempo, EURJPY subirá mucho más fuerte (véase el gráfico siguiente). O si sube EURUSD y AUDUSD baja al mismo tiempo, EUR / AUD sube fuertemente. Otro ejemplo importante: Si el EUR / USD sube y el GBP / USD baja al mismo tiempo, el EUR / GBP sube fuertemente. Tal vez este es el caso más importante que podemos negociar sobre la base de esta regla. Sucede muchas veces que EURUSD y GBPUSD se mueven unos contra otros y que es el mejor momento para negociar EURGBP. Ahora ya sabes por qué EURGBP no se mueve fuertemente la mayor parte del tiempo. Es debido a que EURUSD y GBPUSD se mueven en la misma dirección la mayor parte del tiempo. Por ejemplo suben al mismo tiempo y por lo tanto EURGBP no muestra ningún movimiento significativo, porque cuando ambas monedas de un par de divisas suben o bajan al mismo tiempo, ese par de divisas no muestra Cualquier movimiento fuerte y la dirección (espero que usted sabe por qué un par de divisas va hacia arriba o hacia abajo.Lleva cuando el valor de la primera moneda sube O el valor de la segunda moneda se reduce.Por ejemplo, EURUSD sube , Si el valor del euro sube o el valor de USD disminuye Si esto ocurre al mismo tiempo, el EURUSD sube mucho más). El siguiente gráfico incluye casi todos estos movimientos inusuales y su impacto en el tercer par de divisas. "Si crees que puedes, o crees que no puedes, tienes razón." - Henry Ford Pares de monedas ¿Qué son los pares de divisas? En el mercado de divisas, la moneda se negocia en pares. Los pares tienen significado en relación el uno al otro así que deben permanecer siempre juntos. Las dos monedas de un par se negocian una contra la otra. La tasa a la que se negocian se llama el tipo de cambio. El tipo de cambio se ve afectado por la oferta y la demanda de divisas. Monedas más comunes Las monedas más comunes que se negocian en el mercado se llaman "mayores". La mayoría de las monedas se cotizan frente al dólar de los Estados Unidos (USD). USD se negocia más que cualquier otra moneda. Las cinco monedas más negociadas a continuación son: el euro (EUR); El yen japonés (JPY); La libra esterlina británica (GBP); El franco suizo (CHF) y el dólar australiano (AUD). Los negocios de las seis monedas principales representan el 90% del mercado. El par de divisas más común es el EUR / USD. El tipo de cambio El tipo de cambio siempre está cambiando. El valor de una moneda está determinado por las fuerzas de oferta y demanda del mercado, comparándolo con otra moneda. En un par de divisas, la primera moneda se denomina "moneda base"; La segunda moneda se denomina "moneda de cotización" o "moneda de cambio". Cuando compra un par de divisas, compra la moneda base y vende la moneda de la cotización. El tipo de cambio indica a los compradores cuánto de la moneda de cotización que necesitan para comprar una de la moneda base. El orden en un par siempre permanece igual, siendo un enfoque común por la industria. USD / JPY, por ejemplo, es un par (USD = base, JPY = la cotización). El orden dentro del par, en la forma de usar el término, no cambia. Así que usted lo compra o venderlo, dependiendo de la dirección del comercio. Por ejemplo: USD / JPY - usted compra JPY usando USD o vende JPY para conseguir USD. En la tabla de tipos de cambio en el easy-forex & reg; Sitio web puede ver la forma en que cada par disponible para el comercio se ordena. Aquí está un ejemplo: EUR / USD 1.2500 significa que usted necesita 1.25USD para comprar un euro. También significa que si vende un euro obtiene 1.25USD. Todas las operaciones implican la compra de una moneda y la venta de otra moneda al mismo tiempo. Si al día siguiente el Euro sube frente al USD y el tipo de cambio es ahora de 1.26, por cada 1 Euro que haya comprado, ha ganado 1USD cent. O, si cambió la dirección opuesta, por cada EUR que vendió (en 1,25) perdió 1USD centavo (ya que "comprar" el EUR por 1,26). Comprar y vender moneda Los comerciantes en el mercado de divisas compran y venden moneda para tratar de obtener ganancias. Hay dos precios para la moneda: el precio de compra, llamado "BID"; Y el precio de venta, llamado "ASK". La diferencia entre la "oferta" y la "solicitud" se llama la "extensión". El diferencial representa la diferencia entre lo que el creador de mercado da a comprar a un comerciante y lo que el creador de mercado toma para vender a un comerciante. Por ejemplo: la oferta / oferta de EUR / USD es de 1.2100 / 1.2200. El fabricante de mercado da $ 1.21 al comprar al comerciante, pero toma $ 1.22 al vender al comerciante. Si los comerciantes compran y venden inmediatamente sin ningún cambio en el tipo de cambio, pierden dinero. Esto sucede debido a la propagación - los comerciantes pagan más para comprar la moneda de lo que reciben cuando venden en ese momento. De hecho, el spread es la principal fuente de ingresos para el creador de mercado. Como cualquier otro mercado, el comerciante va a comprar a un precio y vender a un precio más alto. Citas El precio de una moneda se llama la "cotización". Hay dos formas de cotizaciones en el mercado Forex: cotizaciones directas, y cotizaciones indirectas. Una cotización directa es el precio de un dólar de EE.UU. en términos de otra moneda. Una cotización indirecta es el precio de una unidad de otra moneda en términos del dólar estadounidense. Tenga en cuenta: en general, la mayoría de las monedas se cotizan contra el USD (por ejemplo, "cotización directa"). Pero, el EUR, GBP, AUD, NZD (así como Gold XAU y plata XAG) son cotizados indirectamente, por ejemplo: GBP / USD. La cotización es el precio de un par de divisas que el acuerdo se hará con. Esto es distinto de una "indicación", donde el precio dado por un creador de mercado es solamente informativo (para el conocimiento del comerciante, más bien que para la ejecución). Las cotizaciones en tiempo real se proporcionan a easy-forex & reg; Usuarios registrados. Las cotizaciones diferidas ( "indicación") se proporcionan al resto de los usuarios del sitio. Para empezar a obtener cotizaciones en tiempo real de divisas, únase a la easy-forex & reg; Plataforma de comercio de forma gratuita. Предупреждение о риске: торговля валютой, сырьевыми товарами, опционами и контрактами на разницу (внебиржевая торговля) осуществляется с кредитным плечом, сопряжена со значительным риском убытков (возможна потеря всего инвестированного капитала) и может поэтому быть рекомендована не каждому. Убедитесь в том, что вы информированы обо всех рисках, и не инвестируйте больше суммы, которой готовы рискнуть. Пожалуйста, следуйте нашей полной версии Ограничение отвественности в связи с риском. Easy Forex Trading Ltd (CySEC - Номер лицензии 079/07). Easy Forex Trading Ltd (CySEC - Номер лицензии 079/07). Easy Forex & reg; Es una marca registrada. Copyright y copia; 2016. Todos los derechos reservados. Pares de divisas de la divisa A diferencia de la bolsa de valores que tiene acciones individuales, en el mercado Forex tenemos Forex moneda pares. Esto es porque para valorar una moneda debemos compararla a otra, de ahí el término tasa de cambio. Utilice como ejemplo el EUR / USD, que es el Euro frente al Dólar estadounidense. El euro en este caso se considera el & 8216; base & # 8217; Mientras que el dólar estadounidense es la moneda de la cotización & # 8217 ;. En el momento de escribir esto, el EUR / USD es 1.37466 lo que significa que se necesita aproximadamente 1.37 USD para comprar 1 euro. La moneda de cotización, en este caso el dólar estadounidense, se utiliza para determinar cuánto se necesita para comprar la moneda base, que es el euro en este caso. La mecánica de comprar o vender un par de divisas Forex Ya sea que compre o venda un par de divisas, en realidad está realizando dos transacciones al mismo tiempo. Utilizando el ejemplo anterior, si compraba EUR / USD, estaría comprando el euro y vendiendo el dólar estadounidense. Si usted vendiera el EUR / USD usted vendería el euro y compraría el dólar de los EEUU. ¿Por qué esto importa? No es & # 8217; t & # 8230; Para nosotros los comerciantes, especialmente los comerciantes técnicos, una compra o venta de cualquier par de divisas es visto como una sola transacción. El hecho de que en realidad sean dos transacciones simultáneas es irrelevante porque ese proceso es transparente para nosotros. ¿Por qué estás leyendo esto? & # 8230; Dos razones, en realidad. Quiero estar seguro de cubrir todos los fundamentos de Forex y creo que saber lo que realmente ocurre, no importa lo transparente que sea, siempre es beneficioso ¿Qué Pares de Divisas Forex son los mejores para el comercio? A medida que avanza como un comerciante de Forex, encontrará que los mejores pares de divisas de divisas para que el comercio son los que más cómodo. Esto se debe a que cada par de divisas tiene su propia personalidad, en otras palabras, usted comenzará a sentirse cómodo. para cada uno. Supongamos por un momento que los mejores pares de divisas son aquellos que están más comercializados y por lo tanto tienen el mayor volumen diario. Esa lista parecería esto & # 8230; EUR / USD, USD / JPY, GBP / USD, USD / CHF, AUD / USD, USD / CAD, NZD / USD Los pares de la divisa de la divisa sobre componen la mayoría del volumen en el mercado de la divisa. Estas parejas son un buen lugar para comenzar cuando primero aprender a operar en Forex. Por su propia cuenta le proporcionará muchas oportunidades comerciales para usted. Los siguientes pares de divisas de divisas son simplemente combinaciones de lo anterior, y también se negocian muy fuertemente. En mi curso de acción de precio Forex te doy los pares de divisas que comercio y cómo personalmente los comercio de ellos. EUR / JPY, GBP / JPY, EUR / GBP Debe recordar Forex vs Stocks que sólo 8 pares de divisas representan el 72% del volumen en el mercado de divisas. Aunque el gráfico de arriba es muy revelador, no significa necesariamente que otros pares de divisas no se puedan negociar. De hecho, tengo un montón de éxito de comercio de algunas de las cruces exóticas, además de los principales mencionados anteriormente. Pares de productos Hay tres pares de divisas que tienen una fuerte correlación con los productos básicos que posee su respectivo país. Esos pares de divisas son: Estos tres pares se denominan pares de productos básicos & # 8221 ;. Mientras que esto no es necesariamente importante cuando la acción del precio de negociación, sabiendo que estos tres pares están fuertemente influenciados por el precio de las mercancías le ayuda a convertirse en un comerciante de Forex más bien redondeado. Para concluir La cosa más importante a recordar cuando viene a los pares de la modernidad de la divisa es elegir los que usted es comercio más cómodo y no se extiende usted mismo. Si está realizando el seguimiento de más de 15 pares de divisas, es más probable que fuerce las configuraciones comerciales. Escoja de 8 a 15 pares para ver, conozca cómo se mueven y deje que la configuración del comercio le llegue. Justin Bennett es un comerciante de Forex a tiempo completo y propietario de la acción de precio diario. Su carrera de comercio de Forex comenzó en 2007 y ha seguido un camino similar a muchos comerciantes. Probó casi todos los indicadores conocidos por el hombre durante los primeros 3 años con poco éxito. No fue hasta que comenzó a usar la acción de precio bruto en 2010 que se convirtió en consistentemente rentable. Desde entonces, ha estado desarrollando estrategias y técnicas que pueden ser fácilmente duplicadas por otros comerciantes. Justin también se puede encontrar en Google+. Twitter y Facebook Últimos mensajes de Justin Bennett (ver todos) Acerca de Justin Bennett Justin Bennett es un comerciante Forex a tiempo completo y fundador de Daily Price Action. Su carrera comercial en Forex comenzó en 2007 mientras trabajaba como Ingeniero. Comenzó a disfrutar de ganancias consistentes en 2010 después de descubrir el poder de la acción de precios y desde entonces ha entrenado a más de 500 comerciantes de 37 países. Lo que dicen los miembros & # 8230; Después de un año de prueba y error, Joy, Pain y un agujero de £ 3000 en mi cuenta, el destino me llevó a Justin Bennett. Después de sólo una semana siendo miembro me siento como un verdadero comerciante por primera vez. No ha pasado un solo día sin aprender algo nuevo. No hay mo ... Sólo quería decir Bravo & # 8221; En el sitio, el contenido y el análisis diario. Me sorprendió encontrar la sección de análisis en vivo. He venido a través de algunos otros sitios de Forex de acción de precio en mis viajes comerciales a través de los años, pero incluso su formación gratuita, artículo ... Han pasado casi 3 semanas después de unirse al Curso de Acción Justin Price y apenas me reconozco. Esta cosa ha cambiado mis puntos de vista del mercado Forex que casi al instante, mi mentalidad de comercio mejorado. Estoy aprendiendo a ser más paciente ... Deseo felicitarlo por haber iniciado y continuamente desarrollado su sitio web "Daily Price Action". Inicialmente, me convertí en un miembro simplemente para acceder al Curso de Acción de Precio, pero para mi deleite los beneficios periféricos de la membresía han outwe ... Gracias Justin por proporcionar un gran sitio. Puedo decir honestamente que la educación que obtuve después de unirse a su sitio en tan sólo unos pocos meses me ha ayudado drásticamente a convertirse en un comerciante más exitoso. He ganado más conocimiento y experiencia ... La lección y la información de este sitio son simples, claras, cortas y sencillas. Son poderosos porque funcionan. Las estrategias le dan una base para que sepa qué buscar en todos los pares. De mi investigación sobre los mercados de divisas, la mayoría de t ... He sido un miembro de Justin Daily Price Action sitio por sólo 2 meses y honestamente puedo decir que ha transformado completamente mi enfoque de comercio. Antes me había basado en diferentes combinaciones de indicadores en numerosos marcos de tiempo ... Soy estudiante de doctorado y la primera vez que oí hablar de Forex de mi amigo, fue en mayo de 2013. Desde el primer día, lo encontré muy cerca del trabajo ideal que quería hacer. Lo que más me gustó fue la independencia que ofrece como tim completo. Quería agradecer a Justin por su sitio. He estado negociando en el mercado de divisas desde 2012, puedo decir que era un mediocre comerciante en el mejor de los casos, usted sabe que uno (tal vez usted?) Buenos meses, malos meses y al final breakeven o peor. Encontré el comentario de Justin ... He sido miembro de DPA desde julio de 2015 después de seguir a Justin en Twitter por varios meses. Las tablas y el análisis que publicó allí parecía al principio, demasiado simple para valer la pena mirar en más, pero luego me di cuenta de que la simplicit ... 5 pares de divisas más predecibles & # 8211; Q4 2015 Los pares de divisas difieren mucho en su volumen de comercio, rango de movimiento y previsibilidad. Un par de divisas predecible respeta líneas claras de apoyo y resistencia, ya sea frenando y retrocediendo cuando se acercan a ellos o haciendo una clara ruptura y dejando sólo polvo detrás de ellos. En el otro extremo del espectro tenemos los pares impredecibles, agitados y frustrantes. Esta previsibilidad no es estática y cambia a medida que evolucionan las condiciones del mercado y junto con los cambios en las estaciones. Aquí está una lista actualizada y clasificada para los 5 pares de divisas más predecibles para Q4 2015, cada uno con su propio estilo. NZD / USD. Este par de divisas a menudo se pasa por alto hasta arriba de la lista. No sólo se comercializa bien cuando las tendencias en una dirección específica (hacia abajo y esto podría continuar), sino que también disfruta de comercio de gama muy agradable. El kiwi rompe la tierra a nuevos niveles, marcas el punto lejano y después negocia agradable dentro de esa gama. El apoyo anterior funciona como resistencia y viceversa. Además, tiene una excelente memoria & # 8222; Por viejas líneas, y ahora las necesita. En el cuarto trimestre, es probable que continúe disfrutando de este comportamiento positivo, al menos mientras la liquidez es alta, antes de Navidad. AUD / USD. El dólar australiano es un favorito largo tiempo y ha encabezado la lista en el pasado. Más recientemente, ha disfrutado de varios fondos dobles y también una tendencia a abrazar & # 8222; Ronda, como 0,70 y 0,75. Con un volumen de transacción aún mayor que en el verano en el hemisferio norte, AUD / USD tiene un gran potencial para la predictibilidad, especialmente cuando marca los máximos más bajos (bajando) o los mínimos más altos (subiendo). EUR / GBP. El ascenso de esta cruz ha sorprendido a muchos, pero la previsibilidad sigue siendo bastante buena. Este es un buen par para aquellos que no tienen hambre por un montón de pips, pero sin duda mantiene su fuerza en términos de previsibilidad. Al igual que el kiwi, el par se las arregla para marcar el siguiente nivel antes de establecerse en el rango. La dirección podría cambiar en el cuarto trimestre, pero la previsibilidad sin duda podría permanecer estable. GBP / JPY. Contrariamente a la anterior libra par, este es salvaje en los pips, pero sin duda le gusta ronda los niveles. Con las políticas monetarias divergentes oscilando la cruz, pudimos ver buenos desgloses de rangos. EUR / USD. A menudo parece que hay demasiada información alrededor del par de divisas más popular del mundo y ha perdido su posición superior. En el cuarto trimestre, la alta incertidumbre sobre ambos bancos centrales podría causar más volatilidad, pero sólo una previsibilidad limitada. Lo mantenemos en la lista en la suposición de que las cosas se harán más claras antes que tarde y el comercio más direccional podría ver el par de pruebas de soporte y los niveles de resistencia fuera de los rangos limitados limitado. ¿Estás intercambiando estas parejas? ¿Estás de acuerdo o no con la lista? GBP / USD. El cable se está moviendo bastante, pero es probable que siga siendo errático, especialmente como el BOE depende de la Fed. USD / CAD está abriendo nuevos caminos, pero parece que no respeta los niveles anteriores. CHF: La intervención en curso de SNB hace que cualquier franco suizo cruce bastante impredecible. USD / JPY. Mientras que la pareja también le gusta & # 8220; abrazar & # 8221; Niveles, más recientemente 120, su comportamiento es mucho menos predecible que el del Aussie. sobre el autor Yohay Elam - Fundador, Escritor y Editor He estado en el mercado de Forex por más de 5 años, y comparto la experiencia que tengo y el conocimiento que he acumulado. Después de tomar un curso corto sobre forex. Al igual que muchos comerciantes de forex, he ganado la parte significativa de mi conocimiento de la manera difícil. La macroeconomía, el impacto de las noticias en los siempre cambiantes mercados de divisas y la psicología comercial siempre me han fascinado. Antes de fundar Forex Crunch, he trabajado como programador en varias empresas de alta tecnología. Tengo un B. Sc. En Ciencias de la Computación de la Universidad Ben Gurion. Dado este fondo, el software de la divisa tiene una parte relativamente mayor en los postes. Artículos Relacionados Pares de monedas ¿Qué son los pares de divisas? En el mercado de divisas, la moneda se negocia en parejas. Los pares tienen significado en relación el uno al otro así que deben permanecer siempre juntos. Las dos monedas de un par se negocian una contra la otra. La tasa a la que se negocian se llama el tipo de cambio. El tipo de cambio se ve afectado por la oferta y la demanda de divisas. Monedas más comunes Las monedas más comunes que se negocian en el mercado se llaman "mayores". La mayoría de las monedas se cotizan frente al dólar de los Estados Unidos (USD). USD se negocia más que cualquier otra moneda. Las cinco monedas más negociadas a continuación son: el euro (EUR); El yen japonés (JPY); La libra esterlina británica (GBP); El franco suizo (CHF) y el dólar australiano (AUD). Los negocios de las seis monedas principales representan el 90% del mercado. El par de divisas más común es el EUR / USD. El tipo de cambio El tipo de cambio siempre está cambiando. El valor de una moneda está determinado por las fuerzas de oferta y demanda del mercado, comparándolo con otra moneda. En un par de divisas, la primera moneda se denomina "moneda base"; La segunda moneda se denomina "moneda de cotización" o "moneda de cambio". Cuando compra un par de divisas, compra la moneda base y vende la moneda de la cotización. El tipo de cambio indica a los compradores cuánto de la moneda de cotización que necesitan para comprar una de la moneda base. El orden en un par siempre permanece igual, siendo un enfoque común por la industria. USD / JPY, por ejemplo, es un par (USD = base, JPY = la cotización). El orden dentro del par, en la forma de usar el término, no cambia. Así que usted lo compra o venderlo, dependiendo de la dirección del comercio. Por ejemplo: USD / JPY - usted compra JPY usando USD o vende JPY para conseguir USD. En la tabla de tipos de cambio en el easy-forex & reg; Sitio web puede ver la forma en que cada par disponible para el comercio se ordena. Aquí está un ejemplo: EUR / USD 1.2500 significa que usted necesita 1.25USD para comprar un euro. También significa que si vende un euro obtiene 1.25USD. Todas las operaciones implican la compra de una moneda y la venta de otra moneda al mismo tiempo. Si al día siguiente el Euro sube frente al USD y el tipo de cambio es ahora de 1.26, por cada 1 Euro que haya comprado, ha ganado 1USD cent. O, si cambió la dirección opuesta, por cada EUR que vendió (en 1,25) perdió 1USD centavo (ya que "comprar" el EUR por 1,26). Comprar y vender moneda Los comerciantes en el mercado de divisas compran y venden moneda para tratar de obtener ganancias. Hay dos precios para la moneda: el precio de compra, llamado "BID"; Y el precio de venta, llamado "ASK". La diferencia entre la "oferta" y la "solicitud" se llama la "extensión". El diferencial representa la diferencia entre lo que el creador de mercado da a comprar a un comerciante y lo que el creador de mercado toma para vender a un comerciante. Por ejemplo: la oferta / oferta de EUR / USD es de 1.2100 / 1.2200. El fabricante de mercado da $ 1.21 al comprar al comerciante, pero toma $ 1.22 al vender al comerciante. Si los comerciantes compran y venden inmediatamente sin ningún cambio en el tipo de cambio, pierden dinero. Esto sucede debido a la propagación - los comerciantes pagan más para comprar la moneda de lo que reciben cuando venden en ese momento. De hecho, el spread es la principal fuente de ingresos para el creador de mercado. Como cualquier otro mercado, el comerciante va a comprar a un precio y vender a un precio más alto. Citas El precio de una moneda se llama la "cotización". Hay dos formas de cotizaciones en el mercado Forex: cotizaciones directas, y cotizaciones indirectas. Una cotización directa es el precio de un dólar de EE.UU. en términos de otra moneda. Una cotización indirecta es el precio de una unidad de otra moneda en términos del dólar estadounidense. Tenga en cuenta: en general, la mayoría de las monedas se cotizan contra el USD (por ejemplo, "cotización directa"). Pero, el EUR, GBP, AUD, NZD (así como Gold XAU y plata XAG) son cotizados indirectamente, por ejemplo: GBP / USD. La cotización es el precio de un par de divisas que el acuerdo se hará con. Esto es distinto de una "indicación", donde el precio dado por un creador de mercado es solamente informativo (para el conocimiento del comerciante, más bien que para la ejecución). Las cotizaciones en tiempo real se proporcionan a easy-forex & reg; Usuarios registrados. Las cotizaciones diferidas ( "indicación") se proporcionan al resto de los usuarios del sitio. Para empezar a obtener cotizaciones en tiempo real de divisas, únase a la easy-forex & reg; Plataforma de comercio de forma gratuita. Предупреждение о риске: торговля валютой, сырьевыми товарами, опционами и контрактами на разницу (внебиржевая торговля) осуществляется с кредитным плечом, сопряжена со значительным риском убытков (возможна потеря всего инвестированного капитала) и может поэтому быть рекомендована не каждому. Убедитесь в том, что вы информированы обо всех рисках, и не инвестируйте больше суммы, которой готовы рискнуть. Пожалуйста, следуйте нашей полной версии Ограничение отвественности в связи с риском. EF Worldwide Ltd EF Worldwide Ltd Easy Forex & reg; Es una marca registrada. Copyright y copia; 2016. Todos los derechos reservados. Abrir una cuenta real Al optar por convertirse en un operador activo, el saldo de su cuenta demo se convertirá en cero y todos los datos de transacciones se eliminarán de "Mi cuenta / declaración". Su cuenta easy-forex cambiará automáticamente el estado de 'demo trader' a 'trader activo' cuando realice el primer depósito. Contacte con nosotros en [email protected] si tiene alguna pregunta. Actualice su navegador Para ver correctamente el sitio y la plataforma easy-forex, actualice su navegador Internet Explorer 6 (IE6). Ya no seguimos soportando IE6, ya que Microsoft ha detenido el desarrollo de esta versión del navegador. Si tiene alguna pregunta o necesita asistencia, envíenos un correo electrónico a [email protected] Gracias El equipo easy-forex 3 pares de monedas que los comerciantes de sentimientos están viendo USDCAD Tendencia más alta como Sentiment Slides Negativo USDJPY se mueve más bajo que el sentimiento positivo sube La caída de la GBPUSD coincide con la compra al por menor El sentimiento al por menor es la primera herramienta que utilizo al analizar un par de la modernidad para un comercio potencial. Ha sido una parte de mis estrategias para los últimos años y es algo que he discutido en profundidad antes (para aquellos que no están familiarizados con cómo funciona.) Hoy, vamos a mirar a 3 pares de divisas más recientes de apoyo y los niveles de resistencia , Y ver qué sentimiento puede decirnos mientras buscamos oportunidades. USD / CAD & ndash; Sesgo alcista El Dólar estadounidense ha mostrado fortaleza en los últimos seis meses en todos los ámbitos, por lo que no es una sorpresa ver las ganancias que ha tenido específicamente frente al dólar canadiense. Breaking 1.20 hoy marca su nivel más alto desde 2009, pero desde entonces se ha establecido por debajo de esa cantidad hoy. La resistencia mayor se puede encontrar en 1.2045, con el apoyo principal más cercano abajo alrededor de 1.1800. Aprenda Forex: USDCAD Trending Higher & ndash; Soporte y Resistencia El sentimiento sigue siendo negativo y continúa moviendo esa dirección mientras que más y más comerciantes al por menor miran brevemente el par. Dado que SSI es una herramienta contraria, podemos utilizar esto para alimentar nuestro sesgo alcista a medida que las tendencias del USDCAD son más altas. Un retroceso a 1.1800 se consideraría un & ldquo; más seguro & rdquo; Nivel de entrada, mientras que una ruptura por encima de 1.2045 podría chispear a los compradores a actuar también. Aprenda Forex: USDCAD SSI & ndash; La mayoría de los comerciantes al por menor están vendiendo, señal alcista USD / JPY & ndash; sesgo bajista The USDJPY hit a high near 122 last month but has been unable to maintain that level ever since. 116 looks like the only major support level in its way before a large drop. For traders looking to get into a short position at a more favorable price, a bearish channel gives us an entry zone near 117.75. Learn Forex: USDJPY Trending Lower – Bearish Channel With the shift in momentum to th3e downside, retail traders have shifted to buying the pair. Since SSI is positive, this give sentiment traders more reason to sell. Learn Forex: USDJPY SSI – Most Retail Traders are Buying, Bearish Signal GBP/USD – Bearish Bias Lastly we take a look at the British Pound against the US Dollar. US Dollar strength has prevailed against the Pound for the past few months with only a small handful of retracements along the way. Looking at Fibonacci Retracement with the most recent drop can give traders potential sell zones if they believe the pair will continue lower. We see resistance near 1.5250, 1.5325 and 1.5400. Learn Forex: GBPUSD Retracing from a Large Drop – Fibonacci Retracement Drawn Like clockwork, as GBPUSD has continued to fall, sentiment has remained positive. Until sentiment flips the other way, the GBPUSD could continue to move lower. Learn Forex: GBPUSD SSI – Most Retail Traders are Buying, Bearish Signal Each of these currency pairs show promise from a sentiment perspective, but as always, we recommend due diligence before placing these trades on your trading account. Also, feel free to paper trade these positions on a Free Forex Demo account to practice trading currencies risk-free. Video Lessons || Free Forex Training Pares de divisas FOREX is the simultaneous buying of one currency and selling of another. Forex is a large financial market which is much bigger than the stock market. Forex daily trade volume exceeds $3 billion. Forex is an off-the-board market where the operations are conducted through brokers. The trading continues 24 hours a day, 5 days a week. With the help of brokers, it is possible to trade almost all currencies. Currencies, as a rule, are denoted by three letters, the two letters from the beginning denote the country, and the third letter - the name of the currency. The most liquid are considered to be the US dollar (USD), the euro (EUR), the Japanese yen (JPY), the British pound (GBP) and the Swiss franc (CHF). A price of one currency versus another is constantly changing (rising or falling). For example, if we say that the US dollar is decreasing, it is not clear, as the US dollar can rise versus the Australian dollar and fall against the euro. Currencies are always traded in pairs. As currencies are quoted one versus another, the names of the currencies can be divided with a slash (/) and are written in the following way: EUR/USD. Currency pairs correspond to the ratio of currency prices making up the pair. For example, the price of the EUR/USD pair shows how many dollars you can buy for 1 euro. The first currency in the pair is a base currency and the second one is the currency of quoting or quote currency. The euro is a base currency versus other major world currencies. There are the following base currency pairs: Thus, let us consider the most outstanding events in the history of the currency pairs. One of the most interesting movements in Forex market history was shown by the British pound in autumn 1992, on September 16. That day is known as Black Wednesday with the British posting its biggest fall. It was mostly seen in the GBP/DEM (British pound vs Deutschemark) and the GBP/USD (British pound vs US dollar)currency pairs. The fall of the British pound against the US dollar in the period from November to December 1992 constituted 25% (from 2.01 to 1.51 GBP/USD). The general reasons for this "sterling crisis" are said to be the participation of Great Britain in the European currency system with fixed exchange rate corridors; recently passed parliamentary elections; a reduction of industrial output; the Bank of England efforts to hold the parity rate for the Deutschemark, as well as dramatic outflow of investors. At the same time, due to a profitability slant the German currency market became more attractive than the English one. All in all, the speculators were rushing to sell the pounds for the Deutschemarks and for the US dollars. Consequences of the currency crisis were as follows: a sharp increase of the interest rate from 10% to 15%, the British Government had to accept pound devaluation and to secede from the European Monetary System. As a result, the pound returned to a floating exchange rate. Another intriguing currency pair is US dollar vs Japanese yen (USD/JPY). The US dollar and Japanese yen is third on the list of most traded currency pairs after the EUR/USD and GBP/USD. It is traded most actively during sessions in Asia. Movements of this pair are usually smooth; the USD/JPY pair quickly reacts to the risk peaking of financial markets. From the mid 80-es yen ratings started rising actively versus the US dollar. In early 90-es a lively economic development turned into a standstill in Japan, the unemployment increased; earnings and wages slided as well as living standards of the country population. And from the beginning of 1991, this caused bankruptcies of numerous financial organizations in Japan. As a consequence, the quotes on Tokyo Stock Exchange collapsed, yen devaluation took place, thereafter, a new wave of bankruptcies among manufacturing companies began. In 1995 a historical low of the USD/JPY pair was recorded at -79.80. This started in 1997-1998 Asian crisis led to the yen crash. It resulted in the yen downfall from 115 to 150 yen per US dollar. The global economic crisis touched almost all fields of human activities. Forex currency market was no exception. Though, Forex participants (central banks, commercial banks, investment banks, brokers and dealers, pension funds, insurance companies and transnational companies) were in a difficult position, Forex market continues to function successfully, it is stable and profitable as never before. The financial crisis has led to drastic changes of the world's currencies values. During the crisis, the yen strengthened most of all against all other currencies. Neither the US dollar, nor the euro, but the yen proved to be the most reliable currency instrument for traders. One of reasons for such strengthening can be that the traders needed to find a sanctuary amid a monetary chaos. Other specialists explained the uprise of yen rates by refusing from carry trade deals. Thus, below there are currency changes of the major yen pairs. Value before the crisis (08/2008) From the table we see that yen added over 18% versus US dollar, 27.5% - against euro and 33% - versus pound. Among the most strengthened currencies the US dollar took the fourth place. Strange as it may seem, US dollar remains the most reliable currency in the world, irrespective of the advancing recession in the USA, a fall of the country's financial system, spending of $750 billion on Paulson's plan of economic recovery and the constantly growing foreign debt amounting to dozens of billions USD. Investors still rely on it. Below there is a table of currency rate changes versus the Greenback. Value before the crisis (08/2008) Value after the crisis (01/2010) From the data above it can be seen that US dollar gained 8.3% against euro and 19.2% versus pound. Relatively yen and franc a fall was fixed. In the first case, by 18.5%, the second - by 2.5%. Among the strengthened currencies euro took the 12th position. Negative factors were: lowering of GDP and production of the largest Eurozone countries (Germany, France and Italy), fears about recession in the EU, reports about production stagnation, inflation and huge foreign debts of EU members, in particular Portugal, Ireland, Spain and Greece. As for the latter, there is a threat of its secession from the Eurozone. The fall of euro was provoked by investors refusal from this currency in favor of safer currencies (the US dollar and the yen). The table of currency rates change versus euro is given below: Value before the crisis (08/2008) Value after the crisis (01/2010) During the financial crisis the euro had weakened against the following major currencies: the US dollar - by 8.3%, the yen - by 27.5%, the franc -by 8.8% and the Aussie - by 7.7%. From all stated above, we can say that Forex market, unlike the stock and other business activities did not suffer after the global economic crisis, on the contrary, it benefited. Many currency market participants gained, their crisis period yield rate turned to be fabulous. In such situation, many people see an escape from crisis exactly in Forex. As they often say in China: a crisis involves not only perturbations in the economy and social strain, but it is also a favourable time for investments and for numerous problems solving. Back to the list of articles Trading Instruments The best instruments for successful online Forex trading. Why choose InstaForex Get bonus up to 250% More bonuses for members Request a callback Earn with InstaForex Affiliate commission – from 1.5 pips Forum for Forex traders Register as a Partner Financial services are provided by InstaForex Group © 2007-2016 InstaForex ™ is a registered trademark of InstaForex Group The Forex Magician Analysis sections are split into two distinct categories: Country Analysis focuses on 8 of the key countries in Forex: Australian Dollar, Canadian Dollar, Swiss Franc, Euro Dollar, British Pound, Japanese Yen, New Zealand Dollar and US Dollar; its primary goal is to indentify bullish and bearish extremes in order to match them up in currency pairs offering unique buy/sell opportunities. For example, if Euro Dollar was extremely strong and Canadian Dollar was extremely weak we would be looking for a reversal in form (i.e. Euro to become weak and Canadian Dollar to become strong) therefore a sell signal could be warranted for EUR/CAD. Each country has its own value which is unique to the platform (Click to View Example ), a continuous value that is derived from the pips profit/loss against the other countries. Australian Dollar value is calculated continuously from its pips profit/loss against CAD, CHF, EUR, GBP, JPY, NZD and USD. Canadian Dollar value is calculated against AUD, CHF, EUR, GBP, JPY, NZD and USD and so on for each of the 6 remaining countries. Countries will fluctuate naturally between positive and negative values making it easy to spot bullish/bearish extremes; the Forex Magician Master Chart (Click to View Example Chart ) overlays all of the countries on a single chart which provides a useful overview of positive/negative fluctuations. Countries can also be overlaid against each other to spot crossovers - EUR is changing to bullish whilst GBP is changing to bearish - both countries crossover producing a buy opportunity for EUR/GBP. These ideas are just the tip of the iceberg. Each of the countries has its own set of Analysis that can be used as additional support to bullish/bearish ideas; the more analysis that supports the theory, the greater the accuracy . You can monitor Currency Differentials, RSI, Candlesticks, Single/Dual/Treble Moving Averages, Parabolic SAR, Rate of Change, Linear Regression, Short/Medium/Long Term Charts plus more. Click to view the Country Analysis Quick Launch Window (Example) Hover for Moving Averages trade ideas example On November 22nd 2013, the Swiss Franc value crossed above all three averages on daily intervals and gained over 2,000 pips against the other 7 countries. On November 29th 2013, the Canadian Dollar crossed below all three averages and lost around 1,000 pips against the other 7 countries. On November 6th 2013, Great British Pound crossed above all three averages and gained over 3,500 pips against the other 7 countries. The Australian Dollar was hardest hit in the final quarter of 2013; crossing below all three averages late October and depreciated well over 5,000 pips against the other 7 countries. In terms of matching up countries into currency pairs, on November 29th CAD fell below averages and 7 days earlier CHF crossed above moving averages. A strong CHF against a weakened CAD became inevitable that the currency pair CAD/CHF would decline. On November 29th CAD/CHF opened around 0.8550 and bottomed out around 0.8250 on December 27th. GBP/AUD was another interesting pairing as both countries crossed above (GBP) and below (AUD) the averages producing an ideal buying opportunity in GBP/AUD. On November 6th the pair opened around 1.6891 and rallied over 800 pips higher in 2 months. Currency Pair Analysis Currency Pair Analysis focuses on 28 Forex pairs ( all of the 8 countries matched up with each other produces 28 pairs ). We have installed our Pro Expert Advisors onto live accounts to feed live data into the Forex Magician platform every 5 minutes to provide a complete overview of Technical Studies direction status for Stochastics, Momentum, MACD, RSI, Bollinger Bands, a range of Moving Averages (short to long term readings), 10 Bullish/Bearish Candlestick Patterns, Parabolic SAR plus more. You can see at a glance which currency pairs are switching from bullish to bearish and vice versa for each indicator, the date/time of the change and the live price at the time of change Click to View Example ; you can also observe the performance in terms of pips profit/loss of each indicator as if it were traded at the exact time of change. Click to View Example Profitable Currency pairs in the Forex When a trader engages in the forex trade, he or she is particularly concerned about the profitable currency pairs in the forex. This issue then, is vital to one's success in the forex. Just like any other investment, an investor, in this case a forex trader, wants the most profitable investment. However, when it comes to trading in this kind of market, some currency pairs in the forex market stand out than the rest. Their historical trends show an impressive performance that will certainly suit your kind of trading. Hence, a list is prepared containing the lucrative currency pairs in the forex. These are the EUR/USD, the JPY/USD, and the GBP/US. A short explanation for each is included. The EUR/USD Among the currency pairs in the forex, the EUR/USD is a favorite among the forex traders. This is because demand for this pair is particularly stable. Also, there is easy access to information about their market forces that drive the EUR/USD. The US dollar is the world's strongest currency, backed up by the fact that the dollar is the standard of many central banks around the world. Hence, a good currency pair is almost anything that includes the US dollar. Since the European economy is one of the world's largest, and has the second-strongest currency, the pair EUR/USD is certainly one of the highly-stable currency pairs in the forex. The JPY/USD The JPY/USD is another one of the strong currency pairs in the forex. Japan has one of the largest economies in the world. The Bank of Japan is known to have the largest amount of dollar reserves. Hence, trading in the pair of JPY/USD is also very profitable, as government intervention on the macroeconomic level is intense in Japan. The JPY/USD pair is known to be highly sensitive to interest rates. This is because many investors and lenders put also place large amounts of their money on Japanese investments, making the Japanese yen one of the strongest currency in Asia. Also, Japan is known to prioritize its exported goods. It focuses mainly on obtaining a trade balance, if not a surplus. Aside from that, Japan is known to be the biggest lender among all countries, as compared to the US, which is the biggest borrower. Hence, demand for the Japanese yen tends to be high, and it is also shown by historical data. The GBP/USD The GBP/USD is another lucrative currency pair in the forex. Notice that the Great British Pound is also of great value in the forex market. However, economists have noticed the trading the GBP/USD is somewhat highly-leveraged. Past trends have shown that the pair GBP/USD tends to be volatile. Many traders who trade at GBP/USD are usually in want of some action. However, this pair is certainly the most stable among the highly-leveraged trades. Notice that the recommended and profitable currency pairs in the forex market are the ones that set the standards of wealth among all the countries. However, traders who are curious to try different currency pairs in the forex are not discouraged, in fact, it is better that a trader find out the best currency pair to give himself an edge on the market. Predictable Forex Currency Pairs Comparta este artículo de forex: Predictable Foreign exchange currency Pairs Forex currency dealing is directly associated with choosing a good currency set as well as making good investments. The hard part is the fact that we’re in facing a marketplace that is very volatile and only some investors will make money. This is where predictable foreign exchange currency pairs come in. These sets are simpler to deal with due to the fact they generally follow their own resistance and support aspects. Because of said facts you can see that our pairs are the safest ones to deal in the foreign exchange market. We also want to add that when these forex currency pairs break through their assistance and resistance aspects an investor can easily expect to make some additional pips without being getting stressed and there’s a very good chance of breakout trade. Foreign exchange Currency Sets Predictability The largest predictable foreign currency sets are: EUR/GBP, AUD/USD, EUR/USD, NZD/USD and USD/CHF. Said currencies are so predictable because they belong to developed countries and have good associations with one and the other. Fluctuations and movement in all forex sets will take place because of motivators and nationwide problems. The developed countries will always try to keep under control the currency values levels. Developing nations are unable to manage consistent currency exchange rates. Because those developed countries can control foreign currency rates as they can anticipate future movements a lot easier. We can also see high predictability due to the fact that political associations throughout different countries tend to be good. Because politics can put stress on forex regulatory authorities trying to maintain the currency transfer rates as close as possible to a pre defined rate whenever they can. Predictable Foreign exchange currency pair dealing Most forex specialists believe predictable currency pair trading is the only option that’s the safest whenever dealing with guaranteed repeated profits as well as limiting losses. The one set that’s the most predictable is the EUR/USD. We can observe in the state in which it’s overbought the pair go back when in the state where it is oversold it retraces movement to ensure stability is achieved. We can’t state the same when referring to foreign currency sets which aren’t predictable. To illustrate, if you evaluate USD/JPY, experts feel that it’s the most difficult pair to anticipate motions for. Basically, when you deal predictable foreign exchange currency sets it’s far easier to anticipate the movements in the marketplace. These sets are perfect for both expert and also novice investors and they’re not recommended for those people who like to face bigger risks. Comparta este artículo de forex: What Is Currency Pairs? Everything in the world gradually changes, and currency today, already not simply monetary unit, is a key element of a financial system of the countries on which it is possible to buy services, goods, real estate and other things. With intensifying of the international commodity exchange, it and itself became goods, and as goods actively participates in the auction in the exchange markets around the world. In the market Forex, each currency, also becomes at the same time both an agent for payments and the main goods for trade activity. The standard, marking of currencies from three signs in which, the first two letters show the country – the issuer, and the last symbol – indicates the name of currency. All currencies as a kind of goods, have different degree of appeal to traders, and some, especially attractive admit the main currencies for creation of currency pairs Forex: • USD – American dollar; • CAD – Canadian dollar; • CHF – Swiss franc; • GBP – British pound; • JPY – Japanese yen; • AUD – Australian dollar; • NZD – New Zealand dollar; • SEK – Swedish krona; • NOK – Norwegian krone. Trade is carried out in the form of breakdown of currencies in pairs, and the change in price is estimated by change of a ratio of cost of these currency pairs. Such concept as an exchange rate – the currency cost calculated in monetary units of other currency is for this purpose used. Total of available currency pairs, or otherwise speaking, trade tools, already exceeded 50. One of the things that will make you a better currency trader is to learn the personalities of the different pairs that you are trading. If you are a parent then you will understand this lesson very well. Each of your children have a different personality type, don’t they? Each of them responds differently to different situations… If you are a parent then I know that you know this to be true. If you are an experienced parent then you know how to work well with each of your children’s personality types. In a similar way currency pairs each have their own personalities. They respond differently to different types of clinical events and news events. They also respond differently to the change and value of their correlated currencies. I want to help explain some of this so that you can go deeper in your knowledge and experience with the Forex markets. I want you to be able to read a currency pair’s movements better so that you can make better trades and have more success as a Forex trader. Why Different Currency Pairs Move in Different Ways Each different currency type interacts with the other in different ways. And each of the currency pairs are influenced by different political events, news releases and also goods/material/financial trading between different global market centers. The most common currency traded is the United States is dollar, also known as USD. When it comes to trading volume, the currency most frequently traded in relation to other key currencies in the global market is the U.S. dollar. At first glance you might fall into the trap of thinking that each currency pair moves the same as the others. After all, when you open a chart, and arrange a number of different pairs on the chart, you will notice that the prices are all moving. They are moving up and down, some faster than others, but each in a certain way. Depending on how long you have traded, have you noticed how the EURUSD and USDCHF pair move in almost identical patterns, but yet in reverse? I’m sure you will notice it if you look at it now. Go ahead an open up the two pairs with hourly charts and you will see what I mean… this is just one of the clearest examples of how the study of the relationships and ‘personalities’ of difference currency pairs can help us as traders. Each currency pair has its own unique personality. They do not all move with the same characteristics. They are not all influenced by news releases in the same way. They do not respond to each other in the same way as well. They each seem to move according to their own ‘personalities.’ This is what I am referring to as “currency personality traits” and is the subject of this article. I feel that studying the way each currency pair moves and fluctuates will help you to become a better trader. Just as you have gotten to know your spouse and each of your children very well, and you know how they will typically react under different circumstances, so you can learn also how each currency pair is likely to respond at different times and under different circumstances. Ways in Which News Announcements Influence Currency Pairs When it comes to trading personalities, most of the major currency pairs are affected by certain circumstances, and possibly the largest of these influencing factors are news releases. These news releases happen at different times of the day that typically in the morning of the time zone in which they are released. For example, if the news release is from the Bank of Japan then the news release will typically come out during the morning hours in Japan. Using sites like ForexFactory.com and DailyFx.com can help you to be aware of when different news releases come out. I recommend that you research these sites and others too and find the right one for you to help you track these daily news announcements. Note: Not all news announcements come out during the morning banking hours. Some of the most important releases will come out, for example, during the early-afternoon hours of the US market. It is usually a good idea to start each trading day with reviewing the high impact news events for that day and making note of the ones that could influence the currency pairs that you trade. Breakdown of a Few Major Currency Pairs EUR / USD The EUR/USD pair is in a privileged position, because of the fact that these two zones are the most developed ones, from an economic standpoint. The Euro is part of the world’s most significant currency bloc, among USD and JPY, having a great deal of influence over the global asset allocations. Moreover, after the U.S. dollar, the Euro is the most vital reserve currency, responsible for almost 60% of the composite USD index. While the EUR/USD pair does take into account European interest-rate changes, as well as economical developments or downfalls, the Euro is second fiddle to the U.S. dollar, which is the driving force behind the currency pair. This means that traders need to carefully analyze both sides of the pairing when it comes to game-changing stories, in order to understand its roots. No other currency pair can surpass the EUR/USD liquidity, which is also expanded to “crosses”, which are non-dollar rates, like EUR/CHF and EUR/GBP. Moreover, these crosses become more-liquid crossed, thanks to the less-liquid currency pairs containing the U.S. dollar, like GBP/USD and USD/CHF. With the strengthened liquidity, positions are able to be easily closed or opened, with minimal spreads, giving short-term traders the chance to trade them with relative ease. One challenge, however, is that the EURUSD can also be something of a wily pair and can be difficult to trade profitably. Because it is one of the most ‘active’ pairs in terms of trading volume, this seems to be where most new traders begin their journeys. Also there is an attractiveness because of the generally low spreads on the EURUSD, which can get as low as 0.0 pips with some brokers. This fact alone makes entering into trades very attractive for many traders. Additionally, traders with larger accounts and the need to open large trades find the liquidity of the EURUSD pair attractive because it means they can easily get their orders filled, even with very large orders (this too, however, will depend also on the broker). USD / JPY Completing the Bermuda triangle of trading is the USD/JPY currency pair, which is ranked second amongst active trading. The USD/JPY pair has a complicated political history. The amount of trade volume with Japan has been fluctuating in recent years and so its importance is not what it once was. But it is a scenario which the Yen is still in a favorable position, acting as a bridge with the US and other Asian nations. Trading with China has started to come into play in recent years, but the volume is still very low. The Singapore Dollar has also increased greatly in trading volume compared to years past. While in regards to economics, one would assume that the Bank of Japan (BOJ) is the most relevant governmental institution, the truth is that the Ministry of Finance (MOF) has an even bigger influence on the currency values in Japan. To achieve the desired economical reconstruction, the MOF in collaboration with the BOJ, lobbied hard in the currency market for the yen, spending countless amounts of money, supporting the greenback and reducing the yen value. To figure out why the USD/JPY currency pair is so influential, all it takes is a look at the country rankings when it comes to investment rate and domestic savings. Surprise-surprise, Japan tops both these lists, thus bringing in huge financial investments scattered worldwide. The Yen is often times viewed as a safe-haven currency, similar to the Swiss Franc in such ways. But this demand for the ‘safe-haven’ does fluctuate and the value of the Yen can swing widely in one director or the other. Note: You will often see the Yen move in tandem against its major pairs: USDJPY, EURJPY, GBPJPY and even AUDJPY and CADJPY. Usually when there is a move on the Yen, it will be the same type of move against all Yen pairs. GBP/USD Strengths and Weaknesses What do you get if you take a currency with low liquidity and large points and pair it with the USD? Headaches, of course. This problematic currency is the pound, which many traders avoid because of its instability. Before the Euro became a household name in 1994, only three currencies (GBP, NZD and AUD) had their values denominated in USD. This resulted in risky and costly pound movements, which prevented the currency from gaining any dominance on the market. Because of the unreliable nature of the currency, the pound often takes the lead when it comes to significant USD moves, violating certain technical levels ahead of the EUR/USD pair. This means that even the traders who don’t have the slightest interest in dealing with the currency, still need to monitor it in order to predict how the EUR/USD rate will act. This is a wonderful example of how one strong currency pair can affect many others. If there is a strong move on the British Pound against the US Dollar, for example, this can send the value of the US currency down which will in turn affect many of the minor pairs that the US trades against, like the NZDUSD, again, for example. So what you will see is a move precipitated by the British Pound/GBP which in turn affects the US Dollar which in turn can affect the minor US-pairs—in this example, the New Zealand Dollar NZD. If you pay attention to the high impact news releases you will have a better feeling for the pulse of the market as you watch the interaction of the ‘major players’ – that is, the major currency pairs like the US Dollar, the British Pound, the Euro, and the Yen. Another Example of Currency Correlation and Influence To better understand the concept, here is another practical example. Let’s say the U.S. dollar has a downfall, influenced by negative news. On the other hand, the Euro and Pound reach higher levels and because the pound has a resistance level similar to the Euro, we can assume that the Euro will behave the same way. Because of the fact that the Pound market is not as deep as the Euro one, we can actually anticipate the move of the Euro based on how the Pound also fares. Therefore, even if the Pound follows through or maintains its level, it’s a strong indication that the Euro will copy its movements too. The pound is very one-sided. It doesn’t play well in pairs, nor does it have too many aces up its sleeve to compensate for low liquidity. While the EUR/USD currency pair offers traders several opportunities to enter on retracement, the pound doesn’t usually offer as good of opportunities (though the market is always fluctuating and what holds true one year may vary to the next). That’s why when dealing with this currency GBPUSD, a certain level of aggressiveness is required, as well as quick reactions to enter on the first valid signal, instead of hoping for a pullback and better entry later. Apart from the aggressiveness, dealing with GBPUSD also requires a good sense of anticipation, since in non-trending markets, the currency often experiences/shows false breaks. This gives traders the opportunity to place stop-loss orders in the neighborhood of major technical levels but also presents difficulty when trying to trade GBPJPY breakouts . USD / CHF We can argue all day about volatile and low liquidity currencies, but pretty much everybody agrees that the Swiss Franc has some special advantages as a currency in-and-of-itself. It has an honorable place among the big players, thanks to Switzerland’s state of affairs and banking laws. Approximately one third of the worldwide private assets found their home there. Famous for its well-grounded privacy laws and neutrality, the currency is like a refugee camp for traders, since unlike the U.S. dollar and other currencies, it barely gives traders reasons to worry. In a time where there is political uncertainty everywhere and almost every breaking news event has the potential of drastically influencing currencies, the Swiss franc is like a breath of fresh air (in some ways). The Swiss National Bank (SNB) is the institution a trader would certainly want to monitor, thanks to the currency’s bond with the Euro and the trades with the Eurozone. At first glance, the Swiss franc seems to follow the pound’s footsteps, but the Pound is nowhere near the Swiss franc’s volatility. The Pound is too often influenced by UK-specific news, while the Swissy has a bit less movement after such. It rather behaves similar to the EUR/USD pair. This similarity is often seen as a mirror opposite, however. It is fascinating to see the way the EURUSD and USDCHF dance together. Similar to the pound, the Swissy barely has any pullback and moves with the somewhat erratic movements, a scenario mostly preferred by those traders who are quick to react and like to scalp or trade with larger stop-loss levels. The USD/CHF pair will often exhibit false breaks, forcing traders to configure order levels in a way similar to the Pound. While the USD/CHF liquidity is below average, traders who enjoy trading this pair are able to still get good moves. For those watching this pair, always keep an eye on the news announcements from the US, from any country in Europe and also on the news releases in England. In a Nutshell There are several factors which influence the currency markets, such as time zones, liquidity, news event reactions and market evolution. While there isn’t a mold for us to be able to exactly determine how a currency is going to behave, analyzing specific characteristics of the currency pairs brings us one step closer to successfully anticipating its movements. A skilled trader will be capable of differentiating one currency from another by paying attention to traits that stand-out and coming up with appropriate trading strategies for each pair. You may or may not have noticed that a trading strategy that works well on one currency pair may not work as well on another. This is just the way things are and we as traders do not have a ‘holy grail’ that will work under all market conditions and on all currency pairs. Use these lessons though to gain more perspective on your trading and try and keep the ‘personalities’ of each pair in mind as you trade. How Will You Apply This? I do not know how many currency pairs you’re trading. I also do not know what your experience has been to date. If you are a beginner then I will suggest to you to observe one currency pair in particular. Watch only one pair at a time as you’re learning your system. This takes a ton of discipline, but it is worth it. Your goal, if you are a beginner, is to master your trading system. Do not be concerned about necessarily learning each currency pair, or even one or two, in the beginning. The very best thing you can do is to master your trading system. Until this is done, nothing else matters. But if you have already learned your trading system, then what are you doing to really learn the different currency pairs that you are trading? You might be looking at the majors all at one time and this is fine to do. But the challenge with this approach is that it can be more difficult to learn the personalities of multiple currency pairs at one time. This is the downside. The advantage, however, is that you can see how the different pairs interact with each other as you study and trade, and this is important too. Remember, nothing can replace raw trading experience. The more you trade, the more you will learn and the better you will become as a trader overall. Becoming a professional trader is not an overnight leap, but rather takes years of experience and disciplined effort. Do not give up if you are new and feel like you just can’t make any headway. Continue on slowly but diligently and your experience will begin to grow as will your successful trades. Use what you have learned here with the currency personalities to help you make better trades along the way. Please let me know if you have enjoyed this article and if you would like to read any more about different currency pairs and their typical habits . First I am a father, a husband and then the author of the book “How to Start Your Own Forex Signals Service”. I am also a Forex trader, a programmer, an entrepreneur, and the founder of ea-coder.com Forex blog. I have created two of the most popular trade copiers and other trading tools for MT4 that are already used world wide by hundreds of currency traders. 9 Comments John Roney says: I’d love to read an article on the dragon… GBPJPY since that’s the pair I trade the most. Do you have any more information on how news releases affect these different pairs mentioned and the dragon also? Just curious. ¡Gracias! 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Página solicitada: http://www.moneyshow.com/ URL Requested: www.moneyshow.com/a Tailoring Your Technical Approach to Currency "Personalities" Every currency pair has qualities unique to it. Find out what those qualities are. Much has been written about the suitability of technical analysis for trading in the currency markets. While this is undoubtedly true, it can leave traders, particularly those new to the currency markets, with the impression that all technical tools are equally applicable to all major currency pairs. Perhaps most dangerous from the standpoint of profitability, it can also seduce traders into searching for the proverbial silver bullet: that magic technical tool or study that works for all currency pairs, all the time. However, anyone who has traded Forex for any length of time will recognise that, for example, dollar/Yen (USD/JPY) and dollar/Swiss (USD/CHF) trade in distinctly different fashions. Why, then, should a one-size-fits-all technical approach be expected to produce steady trading results? Instead, traders are more likely to experience improved results if they recognise the differences between the major currency pairs and employ different technical strategies to them. This article will explore some of the differences between the major currency pairs and suggest technical approaches that are best suited to each pair's behavioral tendencies. The Biggie By far the most actively traded currency pair is euro/dollar (EUR/USD), accounting for 28 percent of daily global volume in the most recent Bank for International Settlements (BIS) survey of currency market activity. EUR/USD receives further interest from volume generated by the Euro-crosses (e.g. euro/British pound (EUR/GBP), EUR/CHF and EUR/JPY, and this interest tends to be contrary to the underlying U.S. dollar direction. For example, in a U.S. dollar-negative environment, the Euro will have an underlying bid stemming from overall U.S. dollar selling. However, less liquid dollar pairs (e.g. USD/CHF) will be sold through the more liquid Euro crosses, in this case resulting in EUR/CHF selling, which introduces a Euro offer into the EUR/USD market. This two-way interest tends to slow Euro movements relative to other major dollar pairs and makes it an attractive market for short-term traders, who can exploit "backing and filling." On the other hand, this depth of liquidity also means EUR/USD tends to experience prolonged, seemingly inconclusive tests of technical levels, whether generated by trendline analysis or Fibonacci/Elliott wave calculations. This suggests breakout traders need to allow for a greater margin of error: 20-30 pips. (A pip is the smallest increment in which a foreign currency can trade with respect to identifying breaks of technical levels.) Another way to gauge whether EUR/USD is breaking out is to look to the less liquid USD/CHF and GBP/USD. If these pairs have broken equivalent technical levels, for example recent daily highs, then EUR/USD is likely to do the same after a lag. If "Swissy" and "Cable" (popular name for British pound) are stalling at those levels, then EUR/USD will likely fail as well. Customise Your Settings In terms of technical studies, the overwhelming depth of EUR/USD suggests that momentum oscillators are well-suited to trading the euro, but traders should consider adjusting the studies' parameters (increase time periods) to account for the relatively plodding, back-and-fill movements of EUR/USD. In this sense, reliance on very short-term indicators (less than 30 minutes) exposes traders to an increased likelihood of "whipsaw" movements. Moving average convergence divergence (MACD) as a momentum study is well-suited to EUR/USD, particularly because it utilises exponential moving averages (greater weight to more recent prices, less to old prices) in conjunction with a third moving average, resulting in fewer false crossovers. Short-term (hourly) momentum divergences routinely occur in EUR/USD, but they need to be confirmed by breaks of price levels identified though trendline analysis to suggest an actionable trade. When larger moves are underway, traders are also likely to find the directional movement indicator (DMI) system useful for confirming whether a trend is in place, in which case momentum readings should be discounted, and might choose to rely on DI+/DI- crossovers for additional trade entry signals. Second Place The next most actively traded currency pair is USD/JPY, which accounted for 17 percent of daily global volume in the 2004 BIS survey of currency market turnover. USD/JPY has traditionally been the most politically sensitive currency pair, with successive U.S. governments using the exchange rate as a lever in trade negotiations with Japan. While China has recently replaced Japan as the Asian market evoking U.S. trade tensions, USD/JPY still acts as a regional currency proxy for China and other less-liquid, highly regulated Asian currencies. In this sense, USD/JPY is frequently prone to extended trending periods as trade or regional political themes (e.g. yuan revaluation) play out. For day-to-day trading, however, the most significant feature of USD/JPY is the heavy influence exerted by Japanese institutional investors and asset managers. Due to a culture of intra-Japanese collegiality, including extensive position and strategy information-sharing, Japanese asset managers frequently act in the same direction on the yen in the currency market. In concrete terms, this frequently manifests itself in clusters of orders at similar price or technical levels, which then reinforce those levels as points of support or resistance. Once these levels are breached, similar clusters of stop loss orders are frequently just behind, which in turn fuel the breakout. Also, as the Japanese investment community moves en masse into a particular trade, they tend to drive the market away from themselves for periods of time, all the while adjusting their orders to the new price levels, for instance raising limit buy orders as the price rises. An alternate tactic frequently employed by Japanese asset managers is to stagger orders to take advantage of any short-term reversals in the direction of the larger trend. For example, if USD/JPY is at 115.00 and trending higher, USD/JPY buying orders would be placed at arbitrary price points, such as 114.75, 114.50, 114.25 and 114.00, to take advantage of any pullback in the broader trend. This also helps explain why USD/JPY frequently encounters support or resistance at numerically round levels, even though there may be no other corresponding technical significance. Take A Look at Trendlines Turning to the technical side of USD/JPY, the foregoing discussion suggests trendline analysis as perhaps the most significant technical tool for trading USD/JPY. Because of the clustering of Japanese institutional orders around technical or price levels, USD/JPY tends to experience fewer false breaks of trendlines. For example, large-scale selling interest at technical resistance will need to be absorbed if the technical level is to be broken. This is likely to happen only if a larger market move is unfolding, and this suggests any break will be sustained. This makes USD/JPY attractive for breakout traders who employ stop-loss entry orders on breaks of trendline support or resistance. Short-term trendlines, such as hourly or 15 minutes, can be used effectively, but traders need to operate on a similarly short-term basis; daily closing levels hold the most meaning in USD/JPY. In terms of chart analysis, Japanese institutional asset managers rely heavily on candlestick charts (which depend heavily on daily close levels) and traders would be well-advised to learn to recognise major candlestick patterns, such as doji, hanging man, tweezer tops/bottoms and the like. When it comes to significant trend reversals or pauses, daily close (10 p.m. GMT), candlesticks can be highly reliable leading indicators. The yen discussion above also highlighted the factors behind the propensity of USD/JPY to trend over the medium-term (multiweek). This facet suggests traders should look to trend following tools such as moving averages (21- and 55-day periods are heavily used), DMI, and Parabolic SAR. (This refers to J. Welles Wilder Jr.'s Parabolic System. SAR stands for stop and reverse.) Momentum oscillators such as the relative strength index (RSI), MACD or stochastics should generally be avoided, especially intraday, due to the trending and institutional nature driving USD/JPY. While a momentum indicator may reverse course, typically suggesting a potential trade, price action often fails to reverse enough to make the trade worthwhile due to underlying institutional interest. Instead of reversing along with momentum, USD/JPY price action will frequently settle into a sideways range, allowing momentum studies to continue to unwind, until the underlying trend resumes. Finally, Ichimoku analysis (roughly translated as one-glance cloud chart) is another largely Japanese-specific trend identification system that highlights trends and major reversals. A Look At Some Illiquid Currencies Having looked at the two most heavily traded currency pairs, let's now examine two of the least liquid major currency pairs, USD/CHF and GBP/USD, which pose special challenges to technically oriented traders. The so-called Swissy holds a place among the major currency pairs due to Switzerland's unique status as a global investment haven; estimates are that nearly one-third of the world's private assets are held in Switzerland. The Swiss franc has also acted historically as a so-called "safe-haven" currency alternative to the U.S. dollar in times of geo-political uncertainty, but this dimension has largely faded since the end of the Cold War. Today, USD/CHF trades mostly based on overall U.S. dollar sentiment, as opposed to Swiss-based economic fundamentals. The Swiss National Bank (SNB) is primarily concerned with the franc's value relative to the euro, since the vast majority of Swiss trade is with the European Union, and Swiss fundamental developments are primarily reflected in the EUR/CHF cross rate. Liquidity in USD/CHF is never very good, and this makes it a favorite "whipping horse" for hedge funds and other speculative interests looking to maximise the bang for their buck. The lower liquidity and higher volatility of Swissy also makes it a significant leading indicator for major U.S. dollar movements. Swissy will also lead the way in shorter-term movements, but the overall volatility and general jitteriness of USD/CHF price action makes false breaks of technical levels common. These false breaks are frequently stop-loss driven and it is not unusual for prices to trade 15-25 points through a support/resistance level before reversing after the stop losses have been triggered. In strong directional moves, USD/CHF price action tends toward extreme one-way traffic, with minimal backing and filling in comparison to EUR/USD. Cable (GBP/USD), or sterling, also suffers from relatively poor liquidity and this is in part due to its higher pip value (U.S. dollars) and the relatively Euro-centric basis of U.K. trade. Sterling shares many of the same trading characteristics of Swissy outlined just above, but Cable will also react sharply to U.K. fundamental data as well as to U.S. news. Sterling's price action will also display extreme one-way tendencies during larger moves, as traders caught on the wrong side chase the illiquid market to the extremes. Focus On Risk Management The volatility and illiquidity of Swissy and sterling suggests traders need to use a more proactive overall approach to trading these pairs, particularly concerning risk management (i.e. position size in relation to stop levels). With regard to technical tools, the tendency for both pairs to make short-term false breaks of chart levels suggests breakout traders need to be particularly disciplined concerning stop entry levels and should consider a greater margin of error on the order of 30-35 points. In this sense, trendline analysis of periods less than an hour tends to generate more noise than tradable break points, so a focus on longer time periods (four hours-daily) is likely to be more successful in identifying meaningful breaks. By the same token, once a breakout occurs, surpassing the margin of error, the ensuing one-way price action favors traders who are quick on the trigger, and this suggests employing resting stop-loss entry orders to reduce slippage. For those positioned with a move, trailing stops with an acceleration factor, such as parabolic SAR, are well suited to riding out directional volatility until a price reversal signals an exit. Of course, placing contigent orders may not necessarily limit your losses. The volatility inherent in Cable and Swissy makes the use of short-term (hourly and shorter) momentum oscillators problematic, due to both false crossovers and divergences between price/momentum that frequently occur in these time frames. Longer-period oscillators (four hours and more) are best used to highlight potential reversals or divergent price action, but volatility discourages initiating trades based on these alone. Instead, momentum signals need to be confirmed by other indicators, such as breaks of trendlines, Fibonacci retracements or parabolic levels, before a trade is initiated. Try A Larger Retracement With regard to Fibonacci retracement levels, the greater volatility of Cable and Swissy frequently sees them exceed 61.8-percent retracements, only to stall later at the 76.4-percent level, by which time most short-term Elliott wave followers have been stopped out. Short-term spike reversals of greater than 30 points also serve as a reliable way to identify when a directional surge, especially intraday, is completed, and these can be used as both profit taking and counter-trend trading signals. For counter-trend, corrective trades based on spike reversals, stops should be placed slightly beyond the extreme of the spike low/high. A final technical study that is well suited to the explosiveness of Swissy and sterling is the Williams %R, an overbought/oversold momentum indicator, which frequently acts as a leading indicator of price reversals. The overbought/oversold bands should be adjusted to -10/-90 to fit the higher volatility of Cable and Swissy. As with all overbought/oversold studies, however, price action needs to reverse course first before trades are initiated. It's Not One Size Fits All Traders who seek to apply technical trading approaches to the currency market should be aware of the differences in the trading characteristics of the major currency pairs. Just because the euro and the pound are both traded against the dollar does not mean they will trade identically to each other. A more thorough understanding of the various market traits of currencies suggests that certain technical tools are better suited to some currency pairs than others. A currency-specific approach to applying technical analysis is more likely to produce successful results than a one-size-fits-all application across all currency pairs. Most Volatile Active Traded Currency Pairs The picture below shows the most volatile active traded currency pairs sorted by average daily trading range. If we developed a strategy, tested it for example on EUR/USD, USD/JPY and EUR/SEK and saw that USD/JPY seems to respond better and generate more profit, then we must give this pair priority, at least for as long as we follow this strategy. It is a simple obvious fact, but one that requires discipline and patience: if we decide to trade only, say, USD/JPY signals, then our trading must reflect this decision. Never go for impulses like: “come on, let’s go crazy for once, let’s trade a new pair and see what happens”. Demo accounts may be appropriate for this kind of approach, live accounts are not… Trading is not for those looking for a thrill, but for educated and organized individuals who are ready to treat it seriously. The coherence of our strategy (based on extensive testing on several pairs) should be the most important factor when deciding which pairs to trade. However, if we are to choose between the vast array of currency pairs available and have not developed a trading plan just yet, there are still some small but very important points we should take into account. Minor and simplistic as they may seem, in the long run they can seriously tip the scales in our favor. First, a trader should never trade a totally unknown pair. Never go through the list and just pick one randomly, thinking that it “sounds” better than the others. Many people have a certain attraction for exotic things, and a taste of the unknown that may push them to look for NEW things, including when trading. It’s a basic psychological mechanism, and there is nothing wrong about it in general. Unfortunately, when it comes to trading, jumping into the unknown involves a serious risk. Moreover, we are talking about an unknown risk… Just resist to this impulse. Go for the pair you know best, the one you have tested the most,the one that seems to you the most predictable. The market is challenging enough as it is, there is no need to add unnecessary difficulties to the process of trading. Make your life easier and pick a currency pair that you are comfortable with. Secondly, a trader must be aware that each currency pair has certain characteristics of its own, that only become obvious to experienced traders. One may not use fundamental analysis for trading, however currencies do respond to fundamentals in different ways. Some pairs are volatile at some specific moments/time frames, some are more volatile than others, some respond to a certain kind of market data more than others… There are a multitude of small aspects that can add to a trader’s set of edges, which we cover in detail in our courses. Similarly, even though a trader may not use technical analysis at all, he should know that there are pairs which respect the technicals more than others (S/R levels, fibs, trends, etc.). We are talking of course about subtle differences, but which are nevertheless visible to a trained eye. Also, there are personal aspects related to one’s personal trading that should largely influence this decision. The geographical location of a trader, his availability to trade, his working hours, his appetite for risk, financial objectives, etc. - these are all subjective factors very important when choosing which pairs to trade. We are talking about a personal decision, and one that will influence our entire process of trading. An educated trader will know what’s best for him once he understands the mechanisms that lay behind this simple decision. However, as the market becomes ever more competitive, it becomes essential to verify our educated decisions with the experience of a professional. A mentor is best in this respect, as he can take the time to know the trader well, know his strengths and weaknesses and give the best, personalized solution to each of these questions. A mentor cannot guarantee a trader’s success in the market, but he can certainly guarantee that once a mentored trader enters the market, he will trade to the best of his abilities. Then, in time, he can refine these abilities through real market experience and turn our trader’s success from a mere possibility into a high probability. Last, but not least, a basic, simple indication: trade as few currency pairs as possible. I mean it: the fewer, the better. Best - trade only one pair, until you know it by heart. It may take months, years, but it will be worth it. Currency pairs are moved by people - traders like ourselves - and knowing the pair’s tendencies and secrets is to know these people on some level. Try doing that, as it will help you develop a capacity to read between the chart lines and understand better your trading environment. Bienvenido a Yahoo Groups. forex currency pair is a Public Group with 6 members. forex currency pair Foreign Exchange trading is in general the trading of many currencies of the world. It is emerging as the largest and least regulated market providing the. Understanding the Basics of Forex Trading: Currency Pairs. All forex trades involve the simultaneous buying of one currency and selling of another, but the currency pair itself can be thought of as a single unit. Liteforex Online Broker is a launching pad for people, wishing to realize their potential at the International Forex Exchange Market. FXCM.com - 24 hour online forex trading with No Dealing Desk. 2 pip Euro spreads, trading from charts, and live support. 400FX.com 1:400 leverage FOREX CURRENCY TRADING, GOLD, SILVER, 50 Currency Pairs dollar yen euro CHF GBP pound if you watch currency prices change daily. Premium Forex - Forex Data Update Service in Metastock format. The first currency in the pair is referred to as the base currency, and the second. On the other hand, if you are looking to sell the currency pair, you have to sell the EURO and buy the USD. As a part of forex trading strategies the most. Forex / Currency Pair Trading using daily-updated sigma bands from trade risk management will allow you to trade Forex Currency Pair with extremely low. Información del grupo Configuración del grupo Este es un grupo público. Los archivos adjuntos son permitidos. Los miembros no pueden ocultar la dirección de correo electrónico. Listado en el directorio Yahoo Groups. La membresía no requiere aprobación. Los mensajes no se moderan. Todos los miembros pueden publicar mensajes. Direcciones de correo electrónico de grupo Currency Correlation in Forex Trading What is currency correlation, and why is it important? Currency correlation tells us about this interrelationship between two currency pairs. Some currency pairs tend to move in the same direction while some in the opposite direction. There would also be some pairs which are neutral to each other. How one "currency pair" moves in relation to any other "currency pair" is identified as the correlation between those two currency pairs. There is no magic but a simple logic behind these correlations in the Forex market and this logic is derived from the interdependence of various world economies. While trading in Forex market, it is very important to understand and keep track of currency correlations, especially if we trade with multiple currency pairs. It could be interesting to see how the correlation values change over the time. For this, please check Currency Correlation Tables to see if there has been any abnormal changes in the average correlation coefficients recently. The tables give a comparison of the values of past one week and the average of the past one year. Let’s say currency pair "A" moves in the same direction as pair "B", and we have been following pair A’s move very closely. We expect it to go up, and we buy. We have not been following pair "B" so closely, and suddenly, some negative news breaks out or some bearish technical signal suggesting that currency pair B might go down surfaces. Considering the bearish signal, we short-sell pair "B". What we did was neglect the fact that "A" and "B" generally move in the same direction, and now we are left with a long position for one pair and a short position for the other pair. Even if we make profit with one position, the other position may result in a loss and thereby cancel the profit realized by the first position. Once we know about the correlations, we can take advantage of the same to control and optimize our Forex portfolio’s exposure by avoiding conflicting positions. Correlation value range A correlation coefficient of +1 between any two currency pairs means that those two pairs always move in the same direction. Similarly, a coefficient of −1 implies that the two currency pairs always move in the opposite direction. A coefficient of 0 implies that the relationship between the currency pairs is completely random. In fact, all these three scenarios are ideal and practically impossible. We will have a coefficient in the range of −1 to +1, but not the absolute +1, −1, or 0. Positive and negative correlations Positive and negative correlations between any currency pairs are due to the interdependence of economies. For example, the British economy or the Swiss economy would be more influenced by the developments in the European Monetary Union. This means that the British pound or Swiss franc would tend to weaken when the euro is getting weaker or vice versa. Positively correlated currency pairs are those that tend to move in the same direction most of the time, and negatively correlated pairs are those that tend to move in the opposite direction. Positively correlated currency pairs A positive coefficient that is less than +1 implies that the currency pairs in question generally move in the same direction, but not always. A value closer to +1 means that the correlation is strong, and most of the time, the pairs in question move in the same direction. The following example is from the daily charts of EUR/USD and GBP/USD. It is clearly visible that when one currency pair is going down, the other is also falling, and when one is moving up, the other is also rising. This makes these two pairs have a strong positive correlation. Positive Ccrrelation - Currency Pair 1 (EUR/USD) Positive correlation - Currency Pair 2 (GBP/USD) Negatively correlated currency pairs A negative coefficient between 0 and −1 means that the currency pairs in question generally move in the opposite direction, but not always. A value closer to −1 means that the negative correlation is strong, and most of the time, the direction of movement is opposite. The following example is from the daily charts of USD/CHF and EUR/USD (i.e. two pairs with a very strong negative correlation). Because of economic interdependence, the Swiss franc tends to weaken when the euro falls and vice versa. In EUR/USD, the euro is the first currency, and when the euro becomes weak against the U.S. dollar, EUR/USD goes down. On the other hand, when the euro becomes weaker, the Swiss franc tends to weaken, and this makes USD/CHF move up. This makes these two pairs negatively correlated currency pairs. Negative correlation - Currency Pair 1 (EUR/USD) Negative correlation - Currency Pair 2 (USD/CHF) Interpretation of the correlation tables Some currency pairs may be strongly correlated, and some may have a weaker correlation, be it positive or negative. The pairs we need to watch are the ones that are strongly correlated, either positively or negatively. Currency pairs that have a strong positive correlation will tend to move in the same direction most of the time. The pairs that have a strong negative correlation will move in the opposite direction most of the time. Please note that volatility may be very different even if the pairs are strongly correlated. Interpretation of the correlation coefficient values Using correlations while trading with multiple currency pairs Currency correlations are dynamic and keep changing with time. This is because even though the world economies may be interdependent, the direction of two economies as well as market sentiments cannot have absolute correlation. There will be times that correlations may weaken even between strongly correlated pairs and vice versa. The main use of correlation is to avoid taking conflicting positions for currency pairs which tend to move in opposite directions, as explained above. Another way to use it is by checking on some temporary exceptional changes in the correlations from the average values. Let’s take the example of three pairs with strong positive correlations. Let's say that currency pairs A, B and C maintain an average correlation coefficient of 0.80 to 0.95. Suddenly we observe that one pair has moved out of this pattern and it's coefficient with other two pairs has dropped to 0.45. Now there is a very high probability that it will settle back in the normal pattern sooner or later. This gives us an buying opportunity for that currency pair. An example of this can be seen at this weekly currency correlation analysis. Another examples of the same can be seen at this report of changes in short term Forex correlations and also at another report talking about temporarily misaligned correlations of GBP/USD and EUR/USD . We may come across various strategies for correlation trading, but the best use is in managing a multi-currency portfolio so that we do not enter trades that are in conflict with each other. Overall, as mentioned above, it is very important to keep an eye on the currency correlations when we trade with multiple currency pairs. Currency correlation tables The following tables, including the graphical representations, show the recent Forex correlation values as compared with the coefficient during the past year. It may help in analyzing whether there is any sudden change in the current status as compared with the normal trend in the correlations. The following currency correlation tables and the graphical representations of the changes are updated every weekend. You may also use the online Currency Correlation Calculator to calculate the correlations for any currency pair. Forex Trading Tools Forex Trading Alerts subscription Forex Rates Popular Searches Quick Links Síguenos Privacy Policy: We assure complete security of your personal information. Please check the privacy policy for details. Legal Disclaimer and Risk Disclosure : ForexAbode.com is an information site on the foreign exchange (Forex trading) market. Our analysis and forecasts only reflect our views. Any suggestion and Forex trading analysis or advice given on this website is based on our experience of the Forex market and does not constitute an investment advice. We will not accept any liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of, or reliance on, such information anywhere on this site. This includes the in-house analysis or any contents posted by any other member of the site. &dupdo; ForexAbode.com. Todos los derechos reservados. Understanding Currency Pairs The Majors Most currency transactions involve the "Majors", consisting of the British Pound (GBP), Euro (EUR), Japanese Yen (JPY), Swiss Franc (CHF) and the US Dollar (USD). Whilst these are the key five currencies, the Canadian Dollar (CAD) and the Australian Dollar (AUD) are starting to be considered as additional 'major' Monedas Currencies in Pairs The logic for currency pairing, is that if we had a single currency alone, we would have no means to measure its relative value. By pairing two currencies against each other a fluctuating value can be established for one versus the other. Currency Pairs that do not include the US dollar are commonly referred to as Cross Currency Pairs. Cross Currency trading can open a completely new aspect of the Forex market to speculators. Some cross currencies move very slowly and trend very well. Other cross currency pairs move very quickly and are extremely volatile with daily average movements exceeding 100 pips The SWAP When we execute a Forex transaction, we essentially borrow one currency and lend another. This borrowing and lending is like any other banking transaction and therefore subject to interest rates. The interest is referred to as the SWAP rate in the currency markets. The Swap is a credit or debit as a result of daily interest rates. When traders hold positions overnight, they are either credited or debited interest based on the rates at the time. 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Por favor asegúrese de que entiende completamente los riesgos involucrados, teniendo en cuenta sus objetivos de inversión y nivel de experiencia, antes de negociar, y si es necesario buscar asesoramiento independiente. Lea la información completa sobre riesgos. HotForex does not accept clients from the U.S. Canada, Iran, Japan, Sudan, Syria and North Korea. Copyright © 2016 - All Rights Reserved Articles > Investing > Understanding Currency Pairs and Currency Trading Understanding Currency Pairs and Currency Trading A currency pair is a quotation featuring two different currencies, with currency being quoted in terms of the other. A currency exchange rate is always quoted in a currency pair, such as EUR/USD (Euro/U.S. Dollar). All currencies are assigned an International Standards Organization (ISO) code abbreviation which is often used to convey the particular currencies that make up a currency pair. For example, USD/JPY indicates two currencies: the U.S. Dollar and the Japanese Yen. The first currency in a currency pair is referred to as the “base currency”, and the second as the “counter currency” or “quote currency”. The value of the base currency is always 1. It is probably easiest to remember this by looking at a currency pair and saying “1 unit of the base currency buys how many units of the counter currency?”. Many currency pairs are expressed in terms of dollars, with $1 USD acting as the base currency (“how much of a currency does $US 1 buy?”). For example, a quote of USD/JPY 109.48 means that one U.S. dollar is equal to 109.48 Japanese yen. A speculating trader buys a currency pair if he believes the base currency will increase with respect to the quote currency, or that the corresponding exchange rate will rise. Similarly, a speculating trader sells a currency pair with the hope that the base currency will decrease in value compared to the quote currency or the quote currency will increase with regards to the base currency. Forex trading often involves the simultaneous buying of one currency and selling of another. Therefore, when you buy a currency pair, you buy the base currency and sell the quote currency. The “bid” is the price at which you can sell the base currency at the same time of buying the quote currency. The “ask” is the price at which you can buy the base currency at the same time of selling the quote currency. The bid price is always lower than the ask price. The difference between the bid and the ask price is referred to as the spread. In currency trading, the most economically liquid and politically steady currencies are in higher demand than currencies based in less stable areas. Due to the size and strength of the United States economy, the American dollar is the world's most actively traded currency, and the U.S. dollar is normally taken as the base currency for quotes. The "majors" – the most liquid and most commonly traded currencies - are the U.S. dollar (USD ), the Euro (EUR), the New Zealand dollar (NZD), the Canadian dollar (CAD ), the Swiss franc (CHF), the British pound (GBP), the Japanese Yen (JPY) and the Australian dollar (AUD ). Currency pairs that do not involve the U.S. dollar are referred to as “cross rates”. A “euro cross” contains the Euro in the currency pair. When the U.S. dollar is the base currency and a currency quote goes up, it means the dollar has appreciated in value and the other currency has comparably weakened. In the previous exmple of Japanese Yen and U.S. dollars, if the USD/JPY quote increases to 110.60, then the dollar would become stronger since it is now able to buy more yen. The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD ) and the Euro (EUR). In these cases, a quote of GBP/USD 2.0574 implies that one British pound equals 2.0574 U.S. dollars. In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar. In short, if the currency quote moves higher than the value of the base currency increases. A lower quote means the base currency is weakening. Become a SMARTER investor. RECENT COMMENTARY AND ARTICLES CITE THIS TERM Correlation Between Currencies Correlation between sets of data refers to the statistical relationship that exists between them. In forex trading, if we take two currency pairs, for example, we can calculate how closely their price is correlated, giving us insight that we may be able to exploit for future profit. This can result in improvements to our trade expectancy by refining our entry and exit strategy through analysis of highly correlated pairs, by optimization of exposure to uncorrelated currency pairs, or by several other means. If you are not sure what that means, it's ok, once you become familiar with the concept of correlation, its usefulness will be very clear. In this article, we will focus on how to calculate the "correlation coefficient", a number between -1 and +1, which indicates how closely related two currency pairs (or any other data sets) are. Follow-up articles will provide a broader study of its possible uses in extracting profit from the forex market. There are a number of different ways to calculate dependence between time series data, such as financial instrument price feeds that are used in constructing our candle or bar charts. By far the most useful and relevant method is the calculation of linear dependence by way of the "Pearson product-moment correlation coefficient" . For the purpose of this article, we will simply refer to it as the "correlation coefficient". In order to calculate the correlation coefficient between 2 currency pairs, we would use the following equation: r xy is the correlation coefficient between datasets x and y (the quantity we are calculating) n is the number of different prices we have in the data set x avg is the arithmetic mean (average) of all the values in data set x y avg is the arithmetic mean (average) of all the values in data set y Please note that (obviously) the prices we use for x and y must both be over the same timeframe. Also, r xy = r yx and -1 =< r xy =< 1 for any data set x and y. A correlation coefficient r value near -1 indicates a high degree of negative correlation, meaning when one data set is moving up, the other is moving down. An r value near +1 indicates that the data move almost in lock-step. It is highly recommended that you go through this calculation manually (on paper or a on spreadsheet) at least several times, using small data sets of 5-10 price points each. This will familiarize you with how the equation works. After this, you can use a spreadsheet to calculate the value directly (for example, using the "=CORREL(x 1 :x n . y 1 :y n )" function in Excel). You can use this, along with a charting function to simulate different scenarios and automatically determine the correlation. At this point you should be familiar enough with the concept to begin using it in your trading. There are numerous ways of using the concept of correlation, the most common being its use in portfolio theory, that dictates portfolio volatility as a function of correlation between assets. In plain English, this means that equal exposure to highly correlated assets is similar to double the exposure to any one of those assets. The details of portfolio theory are beyond the scope of this article, however, common sense also dictates that, for example, if one is long both EUR/USD and GBP/USD, with the correlation between those currency pairs fairly high, the trader is effectively almost doubling the volatility of their portfolio. This is the main reason asset managers advise clients to "diversify" their portfolios - diversification can produce a similar expected return while reducing risk. It is also worth mentioning that in the example above, there are times when a trader may wish to exploit an expected breakdown of the correlation between EUR/USD and GBP/USD, in which case trading EUR/GBP is a better bet. Another common use of correlation is that sentiment can be confirmed through analysis of a highly correlated asset. To use EUR and GBP as an example again, say your trading strategy produces a buy signal on EUR/USD. You can perform the same analysis on GBP/USD, and if it also produces a buy signal, barring a breakdown of correlation, you have just confirmed your chances for a winning trade. If, on the other hand, your analysis produces a neutral or sell signal on GBP/USD, you may wish to stay out of the market, or bet on a breakdown of correlation and buy EUR/GBP. Because of its predictive value, correlation can also be used to forecast future values of certain variables. For example, a trader can analyse the correlation between the ADP US jobs report, released on the first Wednesday of each month, and the official US Labor Department Non-farm Payrolls (NFP) release on the following Friday. If the two releases are found to be highly correlated over time, that information can be used to predict, with some degree of accuracy, the results of the NFP report, and to exploit the market's expected reaction for profit. There are numerous other uses of the correlation coefficient and related values such as covariance and linear regression. It is in your best interest to familiarize yourself with these concepts in the field of statistics, as they can be powerful tools in your quest to extract profit from the forex market. Please feel free to leave public questions or comments below, or contact us privately. The Most Traded Currency Pairs By John Forman on November 27, 2012 The question often comes up among forex traders (especially newer ones) as to which are the most traded currency pairs. There’s no central source of information from which we can figure out how the various currency pairs rank, but we can look to the periodic surveys done my the central banks and monetary authorities of the major global regions to get an idea. These reports are based on the survey of banks, so they don’t really capture activity on the retail level. That is currently only about 5% of total daily volume, though, and market prices are set in the inter-bank market in any case, so we’re not really missing much in the survey data. Global Most Traded Currency Pairs Coming up with a solid global ranking outside the top couple of forex pairs is a challenge because the regional reports tend to focus on the main pairs traded in those regions and don’t parse out some of the less active ones. For example, the USD/CAD and USD/CHF currency pairs are not reported individually in the Japanese data, so it’s hard to get them in the proper rank order. The list below is probably a pretty close representative of how things rank on a global basis, though (based on April 2011 data). It should be noted that EUR/USD is way ahead of the other most traded currency pairs in terms of daily trading volume. That one pair does something like 50% more volume globally than both USD/JPY and GBP/USD combined. You will notice that I did not include the more regionally-oriented forex pairs like USD/MXN, EUR/SEK, USD/KRW, etc. If you’re interested in them, I recommend exploring the individual report (links are provided below). Also, these figures are based on spot market volume, and do not include swaps, forwards, or options. What Forex Pairs Should I Trade? If you are a short-term trader then you’re going to want to focus on the most traded currency pairs because they are generally active enough in that time frame to be worthwhile, and also offer the best bid/ask spreads. If you are specifically a day trader or scalper, you’ll want to focus on the the top forex pairs for the region you trade in to further ensure the best trading conditions. Traders who operate in longer-term swing and position trades, though, need not concern themselves as much with focusing on the most traded currency pairs, though. The costs and requirements for short-term movement are not a real issue. Most Traded Currency Pairs by Region Here is a center-by-center breakdown of the top forex pairs for each region. Again, this is for spot trading only. Swaps, forwards, and options can add considerably to the volume totals (more in some regions than in others). If you want to see the full center totals you can follow the links to the individual reports. London London remains by far the highest volume trading center for foreign exchange. It therefor won’t come as much surprise that the global pair ranking is very similar to the one for this specific center. Based on the most recent data, here are the most traded currency pairs in for the London market. As was the case with the global figures, EUR/USD does about 50% more volume itself than the next two pairs combined. There are a lot of pretty active regional pairs (non-Euro Zone continental currencies) as well as those listed above. See the Bank of England website for additional details. U.S. (New York) The second largest of the trading centers is the U.S. with New York still the main focal point. Here are the most traded currency pairs in for this region. The top non-majors currency pair in this region is USD/MXN, with USD/BRL only doing about a third of that volume. See the New York Fed website for additional details. Note that the Canadian Foreign Exchange Committee also does a volume survey, but it does not break the figures out into individual currency pairs. Tokyo Here are the most traded currency pairs in for the Japanese market. As indicated above, the Japanese report does not have very much depth in terms of specifically parsing out the most traded currency pairs, so the list isn’t as long as for other regions. There is a big drop off from USD/JPY to the EUR pairs,with the former doing between three and four times as much volume. Similarly, then another big drop to the other two most traded currency pairs from the EUR ones. See the Tokyo Foreign Exchange Market Committee website for further details. Australia Australia (primarily Sydney) has become a very significant market in global foreign exchange on a total volume basis. It’s not a broad market, however, in that trading in the Aussie dollar dominates (not surprisingly). Here are the most traded currency pairs. Among the pairs trading in Australia, AUD/USD does about four times as much volume as EUR/USD, and it drops rapidly off even further after that. See the Reserve Bank of Australia website for further details. Singapur Singapore can’t compare to London or New York for sheer trading volume, but it is a broad-based market where most of the major Asian regional currencies trade. Here are the most traded forex pairs. The volume pattern in Singapore shows EUR/USD with nearly 2.5 times as much volume as USD/JPY. Interestingly, EUR/USD does about as much volume in Singapore as in Australia, both of which do about double the volume in Japan. See the SFEMC website for more details. About John Forman John Forman has more than 20 years experience as an investor and trader in a wide array of financial markets. Forex currencies Most Forex exchanges invariably involve the U.S. dollar against a different currency, as the American economy remains the biggest. Other currencies serve as the base for trade as well, such as the Japanese Yen, the British Sterling, the Swiss Franc, and the German mark. Each country's market has its own particular properties. Euro came up to take the place of the German mark . The latter was the foundation. The European central bank has replaced the Bundesbank that has lost its past significance after the former East Germany came to reconsolidation. The feature of the Japanese yen is its instability in some previous years. The greatest rise of this currency has happened in October 1998 when the dollar has suffered 15% reduction against the Japanese yen within a number of days. The Swiss franc is sometimes called "a safe haven" fulfilling the same function as the dollar does. It is called like this because of the neutrality and independent policy pursued by Switzerland, its economy isolation and banking system privacy. The British pound has always had significance for the international exchange markets but it mostly has not been stronger than other currencies. This trend has changed vice-versa lately and the British pound has become one of the most important and attractive currencies in Europe. It was the first currency that the forex market dealt with through cables crossing the Atlantic, which is why the term "cable" has appeared. European currencies had a number of crises because of the attempts to adjust their rates towards one another artificially. French franc and German mark used to create the basis for the Continental European currencies and formed the European currency stem. The stability was useful for the Benelux countries. Considerable fluctuations around this stem were seen in the currencies of rest of the Europe, Mediterranean and Scandinavian countries in particular. Great alterations have come to foreign exchange trading after the European common currency has appeared in 2001. A number of European banks were forced to make their trading assets reconsideration after the currencies of the countries taking part in the unification were fixed relative one another at the beginning of 1998. Still the Euro appearance is not thought to be harmful for the foreign exchange markets health. The Euro being weak has turned into mark and made non-participating European currencies less stable and more affective to speculative forces. It gives prospects for sterling along with the Swiss franc to turn into the most important European currency market. Exotic currencies have a severe risk together with an ability to gain very high possible profits. The weak but fixed currencies can be sought much in order to carry out speculative attacks on them that may lead the countries involved to wide depreciation and economical difficulties. A number of developing currencies try to peg their currencies to the US dollar exchange rates to bring the monetary officials to order and force currency holders not to resort to devaluations. In most of the cases, it is impossible to fix the exchange rates due to indiscipline and it mostly leads to considerable depreciation. These devaluations often cause high possible profit but within the stable periods, investors mostly hold the currencies due to high interest rates. Forex market should not have solid technical aspects grasp while dealing with foreign exchange market especially at emerging markets due to their riskiness. Inability to gain a protection against the risks of these markets can be very harmful at the outlook of the commercial companies. South East Asian and South American markets seem to be the most interesting but it does not exclude African Continent and Eastern Europe possibility to become important markets in future. forex carries out its trading through lots that are the equivalent of the dollar. The "margin" means that while the value of one lot is $1,000 you can accordingly have a control of $100,000 within the currency. Currency trading in the forex market is usually carried out in pairs. The notation of each pair shows the rates at which its currencies are being traded. The ABC/XYZ format is always used to show the notation. Here, ABC/XYZ does not correspond to any currency pair but it does show the possible notation. ABC symbolizes the currency of one country whether XYZ shows the currency of another one. It is impossible for the currency to be traded by itself. For instance to make sense of the trade with JPY it must be compared to any other currency but never traded by itself. This process forms the core of the forex market. Here are some of the creal and common symbols used in the Forex market: USD - The US Dollar EUR - The currency of the European Union "EURO" GBP - The British Pound JPN - The Japanese Yen CHF - The Swiss Franc AUD - The Australian Dollar CAD - The Canadian Dollar NZD - The New Zealand Dollar The most commonly traded currencies are referred to as the 'Majors': US Dollar (USD) Japanese Yen (JPY) Euro (EUR) British Pound (GBP) Canadian Dollar (CAD) Australian Dollar (AUD) Swiss Franc (CHF) Most commonly traded currency pairs are: EUR/USD which stands for Euro / US Dollar USD/JPY which stand for US Dollar / Japanese Yen GBP/USD which stands for British Pound / US Dollar USD/CAD which stands for US Dollar / Canadian Dollar AUD/USD which stands for Australian Dollar/US Dollar USD/CHF which stands for US Dollar / Swiss Franc EUR/JPY which stands for Euro / Japanese Yen Numerator and Denominator The higher fraction is supposed to be the Numerator while the Denominator corresponds to its lower part. For example, in the EUR/USD pair EUR would act as a Numerator being the first or the top, whether USD being after or below is known as Denominator. The basic currency is usually the Numerator whether Denominator is a counter currency. Thus, when you would like to buy a currency and you will place the corresponding "BUY" order dealing with the EUR/USD on the forex platform you are considered to be selling the USD and buying EUR. "LONG" is the name for buying process. On the contrary, if you would like to sell the pair you mean that you are buying the USD and selling the EUR. This is called "SHORT" along with the same stock market process when you first sell any stock, currency or commodity trying to buy it later at a lower price, which means you use short selling. In case you would like to sell or buy a currency pair you are going to sell or buy its Numerator (base currency or the top one), so that the base currency should be dealt vice-versa when you are selling a currency pair. While trading, the base currently is always bought and the counter one is sold. To sell any pair, you simply specify the currency for sale and the one to buy. Finally, the transaction is equal. The absence of any restriction, while short selling, is an advantage of the forex market. Another plus is that both market rise and fall bring profit. You can earn in forex at any trends directions whether the stock market should rise in order to give profit. What happens when I BUY a currency pair? Let's take the idea of buying* What if you bought something (it could literally be almost anything. a house, a piece of jewelry or a stock) and it went up in value. If you sold it at that point, you would have made a profit. the difference between what you paid originally and the greater value that the item is worth now. Currency trading is the same way.. Let's say you want to buy the AUDUSD currency pair. If the AUD goes up in value relative to the USD and then you sell it, you will have made a profit. A trader in this example would be buying the AUD and selling the USD at the same time. For example if the AUDUSD pair was bought at 1.0615 and the pair moved up to 1.0700 at the time that the trade was closed/exited, the profit on the trade would have been 85 pips. *Forex trading carries a high risk and losses can exceed deposited funds All Categories: Servicio al cliente Descargar Launch Software About FXCM Forex Accounts Más recursos Síguenos High Risk Investment Warning: Trading foreign exchange and/or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. Existe la posibilidad de que usted podría sostener una pérdida en exceso de sus fondos depositados y por lo tanto, no debe especular con el capital que no puede permitirse perder. Antes de decidir negociar los productos ofrecidos por FXCM usted debe considerar cuidadosamente sus objetivos, situación financiera, necesidades y nivel de experiencia. Usted debe ser consciente de todos los riesgos asociados con el comercio en margen. FXCM proporciona asesoramiento general que no tiene en cuenta sus objetivos, situación financiera o necesidades. El contenido de este sitio web no debe interpretarse como un consejo personal. FXCM recomienda consultar con un asesor financiero independiente. Haga clic aquí para leer la advertencia de riesgo completo. FXCM es un Comerciante de la Comisión de Futuros registrado y Comerciante de Divisas al por menor con la Commodity Futures Trading Commission y es miembro de la National Futures Association. NFA # 0308179 FXCM Inc., una compañía cotizada en Bolsa de Nueva York (NYSE: FXCM), es una sociedad de cartera y su único activo es una participación mayoritaria en FXCM Holdings, LLC. Forex Capital Markets, LLC ( "FXCM LLC") es una filial directa de FXCM Holdings, LLC. Todas las referencias en este sitio a "FXCM" se refieren a FXCM Inc. y sus subsidiarias consolidadas, incluyendo FXCM Holdings, LLC y Forex Capital Markets, LLC. Tenga en cuenta que la información de este sitio web está dirigida únicamente a clientes minoristas y que algunas de las representaciones aquí contenidas pueden no ser aplicables a los Participantes Elegibles del Contrato (es decir, a los clientes institucionales) según se define en la Ley de Intercambio de Mercancías y la Sección 1 (a) (12). Copyright y copia; 2015 Forex Capital Markets. Todos los derechos reservados. 55 Water St. 50th Floor, Nueva York, NY 10041 Estados Unidos This is one of the very few things that consistently worked when I was trading Forex during 2010. The Analysis of currencies in groups also known as Parallel and Inverse analysis of currency pairs is the technique that analyses a currency's strength or weakness based on the behavior of the pairs where that specific currency is involved. Didn't get it? No problem, let's go with examples. Let's say EURUSD is trending up on a certain day, and I have some other crazy indicator telling me to go long. Since it is my favorite pair and everything looks bright, I go long assuming that EUR is strong. Now, many times this is not enough evidence to consider the Euro strong. If other pairs such as EURJPY and EURGBP are trending down, that is evidence that the EUR is not strong after all. It is strong vs USD but weak versus everyone else. In such scenarios, many times, going long EURUSD doesn't offer a significant trading edge as EUR is not strong enough. To assume that the EUR is strong, all three pairs EURUSD, EURGBP and EURJPY should be trading upwards and that is a confirmation that Euro's strength is the force driving the markets. Otherwise there is someone else driving the market during the day, not our beloved Euro. Second example: USDCAD trending up AUDUSD trending down The USD is strong in both cases. It is the force driving the moves. The ideal trade is to go long USD versus someone, the weakest between CAD and AUD. You would need to analyze then AUDCAD. If it is trending up, CAD is weaker so the ideal trade is long USDCAD. If, on the contrary AUDCAD is trending down, AUD is weaker, and the ideal trade is short AUDUSD. Third example: USDCAD trending up AUDUSD trending up Obviously USD is not strong enough. It is mixed as it is strong vs CAD but weak vs AUD. As USD is mixed, that is, neither strong nor weak, it is better not to trade it. The USD is not the force driving the markets here. The best pair to trade in this situation is long AUDCAD. As AUD is strong and CAD is weak. Let's complicate things with a fourth example: CHF weak, JPY strong What's the ideal trade here? Let's analyze each one of the four currencies one by one (AUD) Is it wise to go long AUDUSD in this environment? It is not clear. AUD's strength is questionable as it is not strong across the line, given that it is weak in front of the JPY. (USD) USD on the other hand looks weak, as it is weak vs AUD and also weak vs CHF. This is the currency to short as it seems week across the line. But we need to find the ideal counterpart to go long vs USD and we already now that AUD is not the ideal one. (CHF) We can't say that CHF is weak or strong today, because the sentiment is mixed. CHF is strong vs USD given that USDCHF is trending down, but at the same time CHF is not totally strong as it is losing vs the JPY. CHF is not the ideal currency to go long here. Similarly to AUD, it is not strong across the whole spectrum. (JPY) The Yen is strong versus the Aussie (AUD) and it is also strong versus the Swiss Frank (CHF). Without question, JPY is the strongest currency, and given that USDCHF is trending down and JPY is stronger than CHF, then the combination USDJPY offers a clearer and more solid downtrend without need to look at the USDJPY chart. We are matching the strongest currency of the day with the weakest one, and that set up offers the best probabilities of success. By analyzing currencies in groups, a trader can match the strongest currency of the day with the weakest one, and that will offer an edge that should result in profitability over the long term. However, very few forex traders look at the Forex market this way and they are instead trapped in the EURUSD slavery, or another currency pair of choice combined with some technical indicators, forcing trades most of the time when there is no clear edge. With this system, the trader doesn't fall in love with one currency pair and needs to be flexible and ready to trade any pair regardless of the fact that it involves the USD or not, or even a pair that he/she has never traded before. The other disadvantage of the system is that spreads for uncommon pairs tend to be a little wider, but that shouldn't be a huge problem if the trades entered are not scalping trades but instead aim to achieve a greater number of pips and over longer time-frames. Ok, very pretty Henrik. But where can I find this information? When do I know if a currency has gone from mixed to the strongest or weakest of the day? Also, when you analyze two, or three pairs like I did here, it is relatively easy, but how about when you analyze all the combinations between all 8 major currencies? Suddenly drawing conclusions and knowing the strongest of the day and the weakest of the day becomes more tricky and time consuming. And that's where Forex Early Warning comes into play. Forex Early Warning offers the Forex Heat Map, a visual tool that allows you to visualize slingshots immediately (slingshots are the combination of weakest vs strongest currency of the day). FEW also sends a trading plan every morning and every night. On top of the Parallel and Inverse Analysis, they use support and resistance in their strategy. They advise to enter long trades only when resistance is broken, and short trades only when support is broken. Accordingly, their trading plan consists of price alerts that you need to set up on your trading platform. When/if the price alert is triggered, that means either a support or resistance level was broken. At that point you should consult the HeatMap tool to verify the overall weakness and strength present on the currencies involved so you can decide whether to enter or not. I'm not affiliated with FEW or anything. But I'm sick of market gurus and crappy forex systems being sold and scamming newbie traders. I was there myself and that's why I share these things. I do think ForexEarlyWarning has a model that works, and a no BS approach to trading and promoting themselves. From all the things that screwed my performance in Forex I could quickly learn that the vast majority of the offers on the internet are worthless garbage. Unscrupulous marketers after yours and my money. By writing this blog-post I expect to somehow share what I consider valuable knowledge and contribute with ForexEarlyWarning as I think their honesty and their system deserve some more recognition and publicity. There is no strategy that wins 100% of the time, you will have your bunch of losers with this one as well but I think this type of analysis could give you a powerful edge. Go to the bottom of this page in order to see the Legal Stuff Forex currency pairs To start getting real time currency quotes, join the easy-forex® trading platform for free. profit of stock option 100% safe hedging in election? Forex currency pairs. For example: the EUR/USD bid/ask rate is 1.2100/1.2200. The market maker gives .21 when buying from the trader, but takes .22 when selling to thetrader. If traders buy and sell immediately without any change in the exchange rate, they lose money. This happens because of the spread – traders paymore to buy the currency than they receive when they sell in that one moment. Forex currency pairs. The exchange rate is always changing. The value of one currency is determined by market supply and demand forces, by comparing it to another currency.In a currency pair, the first currency is called the "base currency"; the second currency is called the "quote currency" or "counter currency". Forex currency pairs - Read more Read more Forex currency pairs A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in FX market. The currency that is usedas the reference is called the counter currency (aka quote currency) and the currency that is quoted in relation is called the base currency (akatransaction currency). Forex currency pairs. Currency pairs are not born equal and do not follow the same technical behavior. The better ones will enjoy a nice follow through after breaking a clear line of The most common currencies traded in the market are called "majors". Most currencies are traded against the United States dollar (USD). USD is tradedmore than any other currency. The five currencies most traded next are: the euro (EUR); the Japanese yen (JPY); the British pound sterling (GBP); theSwiss franc (CHF), and the Australian dollar (AUD). Trades of the six major currencies total 90% of the market. The price of a currency is called the "quote". There are two forms of quotes in the Forex market: direct quotes, and indirect quotes.Forex currency pairs. Forex currency pairs.The two currencies in a currency pair are traded one against the other. The rate at which they are traded is called the exchange rate. The exchangerate is affected by currency supply and demand. Please note: in general, most currencies are quoted against the USD (e.g. – "direct quote"). Video Forex currency pairs Total of available currency pairs, or otherwise speaking, trade tools, already exceeded 50. Forex currency pairs profit. Forex trading often involves the simultaneous buying of one currency and selling of another. Therefore, when you buy a currency pair, you buy the basecurrency and sell the quote currency. The “bid” is the price at which you can sell the base currency at the same time of buying the quote currency.The “ask” is the price at which you can buy the base currency at the same time of selling the quote currency. The bid price is always lower than theask price. The difference between the bid and the ask price is referred to as the spread.Forex currency pairs. On the traded volumes and a demand at traders allocate some groups of cross-currency pairs. The steams which are most demanded from them based on eurosuch as EUR/CHF, EUR/GBP, EUR/AUD. They are allocated, first of all, with high liquidity. Dovish RBNZ to Keep NZD/USD Capped- March Range in Focus Live Account Bonus(Forex currency pairs profit.|) An indirect quote is the price for one UNIT of another currency in terms of the US dollar. Forex currency pairs Forex traders will base their decisions largely on the patterns that are apparent in price movements and the trading signals that thesepatterns imply. A currency pair that has clearly recognizable patterns is often much easier to trade than those pairs that seem to produce less discernible patterns that are hard to interpret. If you are skilled at recognizing patterns and interpreting signalsthen it naturally follows that you would do well to trade those currency pairs that form such patterns. Forex News: 03/04/2015 - Dollar range-bound in holiday trading; awaits employment report Forex currency pairs. The second place, in a rating of cross-pairs, currency pairs with Japanese yen borrow: CAD/JPY – with Canadian dollar, GBP/JPY – with theBritish pound, NZD/JPY – with New Zealand dollar. Their appeal to traders is based on opportunity to carry out with them Kerry trade (Carry Trade) –sale of currency, with rather low level of an interest rate, and the subsequent purchase of currency with higher interest rate, gaining income thanksto difference of rates. Forex currency pairs. When you buy a currency pair, you buy the base currency and sell the quote currency. The exchange rate tells buyers how much of the quote currencythey need to buy one of the base currency. The order in a pair always stays the same, being a common approach by the industry. USD/JPY, for example,is a pair (USD = base, JPY = the quote). The order within the pair, in the way you use the term, does not change. So you either BUY it or SELL it,depending on the direction of the trade. For example: USD/JPY – you either BUY JPY using USD or you Sell JPY to get USD. On the currency rate table onthe easy-forex® website you can view the way in which each pair available for trade is ordered. Forex currency pairs - Read more Description Forex currency pairs In currency trading, the most economically liquid and politically steady currencies are in higher demand than currencies based in less stable areas.Due to the size and strength of the United States economy, the American dollar is the world’s most actively traded currency, and the U.S. dollar isnormally taken as the base currency for quotes. The “majors” – the most liquid and most commonly traded currencies – are the U.S. dollar, the Euro,the New Zealand dollar, the Canadian dollar, the Swiss franc, the British pound, the Japanese Yen and the Australian dollar. Currency pairs that donot involve the U.S. dollar are referred to as “cross rates”. A “euro cross” contains the Euro in the currency pair. What is Forex: Forex trading is the simultaneous buying of one currency and selling another. Currencies are traded in currency pairs. You should also be aware of commodity currencies. Commodity currencies are currencies from countries that have an economy that isheavily dependent on the export of certain raw materials. The Australian dollar, the New Zealand dollar and the Canadian dollar areexamples of commodity currencies that are also major currencies. The quote is the price to a currency pair that the deal will be made with. This is unlike an "indication", where the price given by a market maker isonly informational (for trader’s knowledge, rather than for execution). Real time quotes are provided to easy-forex® logged in users. Delayedquotes ("indication") are provided to the rest of the site users.Forex currency pairs. Forex currency pairs.Forex trading often involves the simultaneous buying of one currency and selling of another. Therefore, when you buy a currency pair, you buy the basecurrency and sell the quote currency. The “bid” is the price at which you can sell the base currency at the same time of buying the quote currency.The “ask” is the price at which you can buy the base currency at the same time of selling the quote currency. The bid price is always lower than theask price. The difference between the bid and the ask price is referred to as the spread. Fiscal Deficit, Housing Leverage Higlight NPC Sessions Watch Forex currency pairs FOREX is the simultaneous buying of one currency and selling of another. Forex is a large financial market which is much bigger than the stock market.Forex daily trade volume exceeds billion. Forex is an off-the-board market where the operations are conducted through brokers. The tradingcontinues 24 hours a day, 5 days a week. With the help of brokers, it is possible to trade almost all currencies. Currencies, as a rule, are denotedby three letters, the two letters from the beginning denote the country, and the third letter - the name of the currency. The most liquid areconsidered to be the US dollar (USD), the euro (EUR), the Japanese yen (JPY), the British pound (GBP) and the Swiss franc (CHF). Forex currency pairs make money. Trade in cross-currency pairs, gives the chance to open transactions of Kerry trade and to use advantages of economic factors at once of twocountries. Considering a difference of characteristics of cross-currency pairs, difference of interest rates, correlation from these or thosepolitical and economic events rendering defining on the movement of a trend.Forex currency pairs. The exchange rate is always changing. The value of one currency is determined by market supply and demand forces, by comparing it to another currency.In a currency pair, the first currency is called the "base currency"; the second currency is called the "quote currency" or "counter currency". Please note: in general, most currencies are quoted against the USD (e.g. – "direct quote"). To start getting real time currency quotes, join the easy-forex® trading platform for free.(Forex currency pairs make money.|) Every online Forex trade that is made involves the buying or selling of one currency at a price relative to another currency –known as trading in pairs. One of questions that online Forex traders, particularly beginners, often find themselves facing is “whichcurrency pairs should I be trading?” The reality is that there is no simple or correct answer to that question. It can depend on awhole host of factors; such as your attitude to risk, what style of trading you use and what your trading objectives are. Currency Pairs? Currency Pairs are what stocks are to stock traders with one important difference. Unlike stocks, a currency does not have a fixed price. We can quote the price of the U.S. dollar by referencing the Euro, the British Pound, the Yen, or even gold or silver, while the price of an American company can only be quoted in the currency of the exchange where it is traded. The most popular and common currency pairs are the EURUSD, EURJPY, USDJPY, AUDJPY, AUDUSD, USDCHF, EURCHF, EURGBP, USDGBP, and GBPJPY pairs. The small list below shows the abbreviations used for different currencies in the market: AUD: Australian Dollar "Aussie" CHF: Swiss Franc "Swissie" CNY: Chinese Yuan EUR: the Euro "the single currency" GBP: The British Pound JPY: Japanese Yen USD: U.S. Dollar "Greenback We can, of course, say that we "buy Yen", for example, without concerning ourselves with what we use to buy it. But even then we make the implicit assumption that we'll sell something to finance our purchase. This is even more the case with traders since they tend to have no money of their own, in the sense that most of the funds used by them are American dollars borrowed from the broker. In order to purchase any currency forex traders need to finance the transaction with a sale. When we buy the Euro by selling the dollar (for instance, as tourists), we are in fact creating a currency quote. If we sell 150 USD to buy 100 Euros from a bank, for example, the quote that we accept is 1,5 for the EURUSD. The most important result of this discussion is that there are two ways to see a transaction in forex. When you buy 1 lot of the EURUSD pair, you might say that you buy 1 lot of EUR, or that you sell one lot of USD, or both Thus, a currency transaction can always be used to express separate but related ideas about different currencies at the same time. In short, you can be bullish about a currency, but in order to know how to profit, you need to know when to be bearish as well. There are no bulls or bears in forex, in fact, since any currency's bull is another one's bear by definition. Forex Quotes: Favorite Currencies Selection Wizard These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site. Trade Forex, Commodities and Stock Indices with Binary Options – See How Forex correlation pairs table Exchange and activated users can it has been complicated over various time forex market. To optimize the forex strategy allows you can either. And the quad charting pack valued at the various time frames. Options trading strategies in the currency pairs. 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Best indicator for day trading Currency Pairs Trading A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. are the pairs available to trade.For example in the EUR/USD pair when you open a SELL position it means you sell EUR when at the same time you BUY dollars. buying or selling securities or commodities (trade) the commercial exchange (buying and selling on domestic or international markets) of goods and services; "Venice was an important center of trade with the East"; "they are accused of conspiring to constrain trade" (trade) engage in the trade of; "he is merchandising telephone sets" The action of engaging in trade Proprietary trader sentiment indicator for the NZD/USD (New Zealand dollar vs. U.S. dollar) forex currency pair---based on the Commitment of Traders (COT) report released by the Commodity Futures Trading Commission (CFTC). provided by LearningMarkets.com. Proprietary trader sentiment indicator for the AUD/USD (Australian dollar vs. U.S. dollar) forex currency pair---based on the Commitment of Traders (COT) report released by the Commodity Futures Trading Commission (CFTC). provided by LearningMarkets.com. Pares de monedas Curious what is the market that is open non-stop during the week, it’s worldwide and has the biggest volume of turnover? It’s the Forex market and people from all over the world trade currency on it. This market appeared as a result of a need for a central place where currencies from all over the world could be traded. These days, this market is the biggest financial market, which is normal when you think just how much trade there are these days in the world. There is a huge amount of trade between countries and it’s only normal that the Forex market will reflect that. The trades on the Forex market are done as an exchange which is done with currency pairs. It’s not actual buying or selling, since there are no goods involved. The currency pair is involved in a form of barter instead. In this article you will find out what are the most important currency pairs when it comes to Forex trading. These currency pairs have more importance during certain parts of the day usually, since the most trade of a currency will be done during business hours in that country. The Forex market is open non-stop, so there are always trades and the exchange rate will vary from hour to hour or even from one minute to another. Trading Forex means selling or buying currencies and it’s all done in currency pairs, always two currencies involved and exchange for one another. When you’re trading the currencies, you’re doing it based on their value in relation to the other currency. For that reason, a currency pair is a quote with the abbreviations, after which a value listing follows, which shows the base currency’s value, as it relates to the other currency. An example of a quaote which is often used is EUR / USD 1.31, which tells the viewer that in exchange for 1 Euro you can get 1.31 USD. In this example the Euro is the base currency and the USD is the counter currency. As you probably expect, the currency which dominates the world’s economy right now, being the strongest and most dominant, is the USD (US dollar). All the major currency pairs in the world have the USD as one of the two currencies, because the country’s economy is so huge. The reference which is preferred by almost everyone is the US dollar and a huge volume of currency transactions involves it. The US dollar is also the currency which is most often used as a reserve currency by countries from all over the world. Below you can read about the currency pairs which offer the most liquidity on the Forex market. As you can see, they all involve the use of the USD as one of the currencies in the pairs. The first currency pair in the world is EUR / USD (Euro to US Dollar). The second one is USD / JPY (US Dollar to Japanese Yen). The rest of the currency pairs are British Pound Sterling to US Dollar, Australian Dollar to US Dollar, US Dollar to Swiss Franc and finally, US Dollar to Canadian Dollar. These currency pairs change in value all the time, since exchange rates fluctuate constantly. One important factor which influences the values of the exchange rate is the amount of trade which is done between the two countries and the rapport between export and import volumes. This is not the only thing which influences the exchange rate though. There are a lot of things which can make the exchange rate to fluctuate, from economic events to political decisions, natural disasters and wars. When you’re looking to find out the most recent exchange rates between currency pairs, you should look for a site which gives you live Forex reports. The most traded currency pairs in the world show you which the countries with the most powerful economies are. The amount of trade which is done by these countries makes the currency popular and more in demand. Understanding how these currency pairs work and how their exchange rate is influenced by the events of the world will help you make much more money on the Forex market. A Collection of Currency Pair Characteristics in Forex Market Today’s post has a challenging goal: spur contribution from our readers to participate in a global project that aims to collect as many currency AND currency pair characteristics as possible! Each currency pair has its own specific behavior, movement, and (tiny) detail that traders recognize and understand as their experience level grows. In fact, focusing on trading currencies and pairs that a trader knows intensively can provide a winner’s edge. In a way knowing the product you are trading in more depth than others gives you home court advantage, so you are at the right address if you are interested in knowing more ‘secrets’ of the pairs and currencies. Here below you will find a list of those features, which are either common knowledge or behavior I have noticed. This list is far from complete! So please feel free to add your experiences and thoughts to this list by placing a comment below the article! There is no secret that the EURUSD attracts the biggest trading volume in the Forex market and is therefore the biggest pair with lowest spreads available. Here are other observations: The EURUSD is heavily impacted by news events such as the NFP, FOMC, quantitative easing, Euro zone struggles. Most of its movement is made during the London session, but it typically does not make a ton of movement in a day. Its daily range is about average. I have noticed that the EURUSD likes to keep pushing in one direction for most of the trading day and that the pair often prefers deeper Fibonacci levels. The GBPUSD absolutely loves to spike up and down, and is well-known for its volatility and big movements. Here are other observations: The Cable makes the most movement during the London session; During the London open it likes to make spikes up and down and often encounters false break outs; Price likes to challenge support and resistance; GBPUSD often retraces to deeper Fibonacci levels like the 78.6 and 88.6; Its daily range is usually quite high; It’s a pair that likes to make spikes against the trend and in those cases it is therefore an interesting pair to trade against the momentum ; On many trading days there is a GBP news event which heavily impacts this pair and the market can remain quiet till the news event is over; The pair is heavily impacted by news events such as the NFP, FOMC, quantitative easing, Euro zone struggles. I have noticed that the start of the reversals is often very choppy, corrective and slow. The USDJPY is another pair that is heavily impacted by the big US Dollar news events. Here are other observations: When the USDJPY is in a consolidation, it can really slow down tremendously and the range often is ultra small; When the USDJPY is in a major trend, it usually continues in that trend with no major or large pullback. It keeps pushing and pushing and only pauses for a smaller bear or bull flag break; In a trending mode, the typical Fibonacci levels for the USDJPY are 23.6 and 38.2 Fibonacci retracement levels. The AUDUSD is the opposite of the GBPJPY or GBPUSD as it’s more of a slower mover. Here are other observations: Price will keep pushing in one direction but will frequently face pullbacks before continuing with the trend; The Aussie news event often has a big impact on Aussie pairs; The AUDUSD is a pair that moves quite a lot during the Asian session, but also moves decently in London and New York sessions; The Aussie currency is heavily tied to commodities, Australian exports, and Chinese economic data (such as import, export, and manufacturing); The AUDUSD is therefore also known as a “risk off-risk on” currency pair. With risk-on the AUDUSD price goes up, with risk-off the USD is in demand and the AUDUSD goes down. Here are its main observations: The EURJJPY moves a lot of pips as well: more than the USDJPY but less than the GBPJPY; It is more suitable for all types of traders; The EURJPY often has chart patterns such as the bear flag and bull flag on its chart. Here are its main observations: The GBPJPY moves a ton of pips and has massive volatility; In fact the GBPJPY is probably on average the pair with the biggest movements and its nickname the Ferrari refers to its speed of movement; It is not a recommended currency pair for traders who just started trading. PAIR #7 EURAUD AND GBPAUD Here are its main observations: These currency pairs are big movers as well and roll up and down quickly; These currency pairs often are in trending mode which last for quite a long time. Here are its main observations: The USDCAD is nick named the Loonie, apparently because of its crazy moves up and down; The volatility is not that drastic in my opinion but can pick up with oil related news events. Here are its main observations: There is historically high correlation with the EURUSD; The Swissy often increases in value when there is a ‘flight to safety’. Here are its main observations: The EURGBP is a slow moving pair on average with low levels of volatility; But despite the lower movement it does have occasional nasty spikes. Please add to this post your thoughts, comments, tips, tricks, and more down below. Thank you for sharing this post and wish you a grand weekend and Happy Hunting! P.s. Oh and don’t be scared to share your wisdom on any of the pairs or currencies as people who will read this blog are not going to cause your edge to disappear – the market is too big for that. P.s.2. So leave a comment down below with silly and interesting things you have noticed with pairs and currencies! Chris is the head of the mentoring program and trading room at Winner's Edge Trading. He has a passion for technical analysis and helping Forex traders achieve their goals in trading. Chris has been trading for almost 10 years and is most fond of the Double Trend Trap (as a strategy), moving averages (as an indicator) and Fibonacci (as a tool). Descargo de responsabilidad: Trading forex en margen conlleva un alto nivel de riesgo, y puede no ser adecuado para todos los inversores. El alto grado de apalancamiento puede trabajar en su contra, así como para usted. Antes de decidir invertir en divisas debe considerar cuidadosamente sus objetivos de inversión, nivel de experiencia y apetito de riesgo. Existe la posibilidad de que usted podría sostener una pérdida de parte o la totalidad de su inversión inicial y por lo tanto no debe invertir dinero que no puede permitirse perder. Usted debe ser consciente de todos los riesgos asociados con el comercio de divisas y buscar asesoramiento de un asesor financiero independiente si tiene alguna duda. All Forex Currency Pairs In One Basket By: Charley Warady Don't put your eggs (Forex currency pairs) all in one basket. Everyone has heard that before and has had it applied to everything from career choices to. bien. Huevos. It's a good philosophy and certainly applicable to trading Forex currency pairs as much as it is to. bien. Huevos. Many experienced Forex traders will tell the novice to start out by concentrating on one Forex trading pair until they get used to the feel of the market. But most agree that you need not stick to only that Forex pair for the duration of your trading career but try out various Forex currency pairs. There are other Forex currency pairs and other markets and the well rounded Forex trader will be comfortable in any number of venues. This comes in handy when a particular Forex currency pair seems to be stalled in a tight trading range. There might be some fundamental news elsewhere that might effect another pair, at which time the ability to seamlessly switch over can be ultimately beneficial. You need not necessarily completely leave the previous market to explore and jump into a new one. You might want to keep a long term trade active and, as long as your orders are in order, there is no reason not to spread out a bit. It doesn't take a multi-tasking guru to keep track of more than one Forex market. Particularly with the online charts that are available, the click of a button or two makes the system smooth. However (and there is always a 'however,' isn't there?), there is a mindset that must be followed with the multi-market trading strategy. It is too easy, especially for the novice Forex trader, to think that because he is in more than one Forex currency pairs, it increases the odds of making a profit in at least one of those markets. This is similar to a blackjack way of thinking. The guy that sits at a blackjack table playing six hands at once does not have better odds of winning than the guy that is only playing one hand. Just as he will have odds of making money; he will also have odds of losing money – times how many hands he is playing. The same holds true for trading multiple markets in Forex. Each individual pair the Forex trader trades should be thought of as an entity in and of itself and not as a group of Forex currency pairs. They should be treated separately, and the profit and/or loss from each trade has nothing to do with the other. Because what sometimes happens, is that the trader will spread himself so thin he's no longer able to keep track of the individual market in which he's involved. Then it becomes gambling; and that's not what you want from Forex trading. And don't even think about getting into different time zoned markets. You'll be dizzy from too much trading and lack of sleep. Your odds will certainly not increase. Expect the opposite. Although it might not be wise to keep all of one's eggs in a singular basket, you have to be careful of handling too many baskets. They truly become hard to carry. Same is true for Forex currency pairs. Riesgo: DailyForex no se hace responsable de ninguna pérdida o daño resultante de la confianza en la información contenida en este sitio web, incluyendo noticias de mercado, análisis, señales comerciales y revisiones de corredores de Forex. Los datos contenidos en este sitio web no son necesariamente en tiempo real ni precisos, y los análisis son opiniones del autor y no representan las recomendaciones de DailyForex ni de sus empleados. El comercio de divisas en margen conlleva un alto riesgo y no es adecuado para todos los inversores. Como producto apalancado, las pérdidas pueden exceder los depósitos iniciales y el capital está en riesgo. Antes de decidir negociar Forex o cualquier otro instrumento financiero, debe considerar cuidadosamente sus objetivos de inversión, nivel de experiencia y apetito por el riesgo. Riesgo: DailyForex no se hace responsable de ninguna pérdida o daño resultante de la confianza en la información contenida en este sitio web, incluyendo noticias de mercado, análisis, señales comerciales y revisiones de corredores de Forex. Los datos contenidos en este sitio web no son necesariamente en tiempo real ni precisos, y los análisis son opiniones del autor y no representan las recomendaciones de DailyForex ni de sus empleados. El comercio de divisas en margen conlleva un alto riesgo y no es adecuado para todos los inversores. Como producto apalancado, las pérdidas pueden exceder los depósitos iniciales y el capital está en riesgo. Antes de decidir negociar Forex o cualquier otro instrumento financiero, debe considerar cuidadosamente sus objetivos de inversión, nivel de experiencia y apetito por el riesgo. The Power of Currency Correlations Different currency pairs can often be seen to move together, sharing a similar chart pattern and increasing and decreasing in value at the same time. These can be seen to be correlated, sharing direction and mimicking the movements of the other. The level of this positive correlation can be measured and ranges from a strongly correlated pair to one which can be considered weak or not correlated. Conversely, whilst some pairs can be seen to follow patterns and fluctuations some currency pairs are negatively correlated, meaning that they do almost the precise opposite to each other. It is important to understand these relationships in order to trade multiple currency pairs successfully. Knowing which pairs move together, both positively and negatively, will help in making important decisions when entering more that one position on more than one pair. Currency pairs do not trade alone and are all interrelated in some way due to the fact that exchange rates are the relative reflection of value between two currencies. These relationships create correlations which are the statistical measure of the strength of the link between the different currency pairs. This ranges from a correlation coefficient of +1 for perfectly positive correlation and -1 for perfectly negative correlation. Currency pairs are never in perfect correlation but exist somewhere in between, but usually significantly closer to one end of the correlation spectrum thus allowing them to be considered negatively or positively related to one another. The importance in understanding which pairs are currently correlating is most obvious for traders who trade across multiple pairs and who look to the correlation coefficient for guidance on the management of their portfolios. Currency pairs correlation can fluctuate and are not considered static. Global economic changes stimulate variations in the level of correlation between currency pairs. This can be for a number of factors but the most common are the divergences in monetary policy causing currency pairs to either agree with each other or not. Some pairs however, are always considered as largely correlated for most, if not all of the time. For example, the EUR/USD and the USD/CHF have a very strong negative correlation, whilst the EUR/USD and the AUD/USD are often positively correlated. This means that, when the EUR/USD rallies, the AUD will also rally against the dollar. At the same time, the US dollar will fall against the Swiss franc as the correlation between these tow currency pairs is negative. Traders can use the knowledge of these relationships in order to position themselves on the correct side of the market. Therefore, when the Euro begins to rally against the dollar they would have the foresight to make sure that they were not exposed to any short positions against the AUD/USD as this would counteract any profits made due to the positive correlation. The understanding of currency pair correlations prevents a trader cancelling out two separate trades across multiple currencies. Similarly, if a trader wishes to spread risk and diversify but still maintain an overall directional position in the market, they often will trade two currencies which have a stong correlation but which may not be +1 or -1. This way if a trader wanted to be long on the EUR/USD but did not want to be exposed to just this currency pair it may make sense for them to place half of their risk on a similar trade in the AUD. Due to the fact that they are not perfectly correlated allows for fluctuations to occur in each but the trader can maintain an overall position on anticipating the direction of both of these pairs. Similarly, hedging two positively correlated positions in opposite directions may allow for successful management. If a trader believes that the Euro will fall against the US dollar then the may decide to also take out a smaller long position on the AUD/USD. This way, a trader can mitigate the potential for losses. If the EUR does fall then the smaller position will close out at a loss but if the EUR value rises then the smaller position will eliminate some of the losses. Tristan Goldthorpe currently lives in Madrid working for an international private sector development consultancy. He completed a postgraduate degree in London two years ago and has since been studying, trading and writing about politics, economics and the forex markets in his spare time. His particular interests are the use of support and resistance to determine price movements and the tendency for markets to become over-extended. Over the past few years he has researched and experimented with different techniques and strategies and now enjoys analysing and discussing potential trade opportunities and fundamental economics. TradingGraphs Contributor | January 18, 2016 Answering basic questions before trading with binary options ¿Cuáles son las opciones binarias? How do I trade with them? Ins & Outs. Strategies, regulations and more information. TradingGraphs Contributor | October 5, 2015 Comparing Binary Options Brokers Correctly Binary options trading, at first glance, sounds like a relatively simple form of alternative investment online. Simply “Call”. Jim Makos | September 14, 2015 How bitcoin startups may fuel a rally on Bitcoin market Serious investors pump huge amount of money in Bitcoin startups. How does this interest in bitcoin startups affect. Jim Makos | May 15, 2015 Relax your Trading Routine with a Suitable Time Frame Lighten your trading life by picking a suitable for your lifestyle time frame allowing you to feel relaxed. Jim Makos | March 10, 2015 Four Reasons Why I Am Short AUD/NZD Short selling AUD/NZD based on moving averages, a resistance level and an MACD cross. Read how I'm planning. Jim Makos | March 9, 2015 How TradingView Reposting to StockTwits can be Improved TradingView allows reposting trading ideas to StockTwits, the Twitter-like platform of financials. Yet, here is why the integration. Jim Makos | February 9, 2015 Is now the time to buy the crude oil? Crude oil is making an attempt for a pullback to higher prices this month, following a 7-month decline. Jim Makos | February 8, 2015 Read and Discuss financial documents at Two Margins Can you analyze financial information? Read, annotate and discuss financial data released by companies, such as earnings and. Jim Makos | February 6, 2015 Will Greek stocks’ free fall take Euro down too? Do the Euro and the Greek stock market go hand in hand? Both seem to be collapsing this. Jim Makos | February 6, 2015 Activision and Twitter stock analysis after earnings Despite positive earnings reports, Activision and Twitter stock charts show bearish signs. More technical analysis on Yelp, Expedia. Currency Correlations There’s a buzz around the forex world at the moment in regard to correlations between currency pairs and how you can use them to your advantage in your trading. While I haven’t personally downloaded or read any of the “secret” reports on this subject, I thought it might be useful to discuss this topic and to give some examples of how I use currency correlations in my own trading. A “correlation” is a statistical measure of the relationship between currency pairs. It measures how much or how little a currency pair follows the direction of another currency pair. Currency pairs often move in tandem or in opposite directions to each other, which is quite understandable given the fact that the base currency may often be the same. For instance, the AUD/USD pair has a very high correlation with the EUR/USD pair. Over the past week, the two moved in the same direction 95% of the time. The correlation coefficient is expressed as a number from -1.0 to +1.0. A negative number means that the currency pairs moved in the opposite direction to each other more of the time, while a positive number means they moved in the same direction more of the time. Taking this to the extremes, a correlation coefficient of -1.0 means the two currency pairs moved in opposite directions to each other 100% of the time, while a correlation coefficient of 1.0 means the two currency pairs moved in the same direction to each other 100% of the time. You can research and monitor the daily closing prices of currency pairs yourself, then calculate the correlations, or you can find a resource that does it for you! One such resource is. http://fxtradeinfocenter.oanda.com/charts_data/fxcorrelations.shtml. Oanda provide a visual tool which lets you quickly see the correlation between currency pairs over the last week, month, all the way up to 2 years. Taking a look at it today reveals that the AUD/USD and NZD/USD closely correlate with the EUR/USD pair (over the last week). This varies over time, but with experience these correlations will become ingrained in you and you’ll be able to make good use of them in your trading. How do you make use of correlations? There are several ways in which I use the correlations between currency pairs. In general, correlation coefficients are calculated on end-of-day prices, so you would think they may not be very useful for intra-day traders. However, I have found that if currency pairs are closely related over the period of a week or a month, then they will often move in tandem throughout the day too. Here are some ideas for how to use correlations: To confirm an entry signal. For example: If I have a trading system that gives me a buy signal on the AUD/USD pair but I am not completely confident, I’ll go to the EUR/USD, NZD/USD or even the GBP/USD to see if a similar setup is possible on those pairs and whether there is little resistance to price moving up. Quite often, there may be an obvious resistance level on the AUD/USD that makes me nervous about buying, but if there is little or no obvious resistance on the correlated pairs – that gives me the confidence to take the signal and enter. If the EUR/USD is able to push upwards quite nicely, then I can be confident the AUD/USD will push up too. To avoid false break-outs. I especially like to use this during the European session when there’s often false break-outs on the GBP/USD. If it looks like the GBP/USD is making a move and I’m ready to enter a trade, I’ll flick over to the AUD/USD to see if it is moving strongly in the same direction. The AUD/USD is a lot less volatile than the GBP/USD, even though they are often closely correlated. So, quite often the AUD/USD will NOT break-out when the GBP/USD breaks a support or resistance level, which gives me a clue that it is probably a false break-out and to hold off entering that particular trade. To diversify your market exposure. If you take a long position in both the AUD/USD and the EUR/USD, then you’re effectively taking the same trade but with double the stake. Keep this in mind when you’re calculating your risk … sticking to a 2% risk level per trade is not a good enough rule, you need to ensure that you don’t risk too much over correlated pairs too. If you have multiple trade setup options, it’s best to diversify your exposure by taking say a EUR/JPY trade with a USD/CAD trade (two pairs that are NOT closely correlated). To hedge your trades. This is, in a way, opposite to the above advice, but I have often used it to my advantage. If you have trade entry signals that seem to defy the general correlation rules, then you might actually like to take both those signals. For instance, the EUR/USD pair nearly always moves in the opposite direction to the USD/CHF pair. If my trading system gave me a buy signal on the EUR/USD pair as well as the USD/CHF pair, then I would probably take both entries with confidence. The reason I would be confident is because it’s likely that at worst, the correlation factor would be in play and one trade would win and the other would lose – with a net effect of a small or nil gain. At best, both trades would win. Even if you only like to trade one currency pair at a time, always consider looking at the correlated currency pairs to see which way they are going and whether or not there’s upcoming support/resistance. Looking at correlated pairs can give you the extra confidence to enter a trade or even to exit a trade at the right time. Knowing the currency correlations can also help you manage your overall risk in the forex markets. Descargo de responsabilidad: Trading forex en margen conlleva un alto nivel de riesgo, y puede no ser adecuado para todos los inversores. El alto grado de apalancamiento puede trabajar en su contra, así como para usted. Antes de decidir invertir en divisas debe considerar cuidadosamente sus objetivos de inversión, nivel de experiencia y apetito de riesgo. Existe la posibilidad de que usted podría sostener una pérdida de parte o la totalidad de su inversión inicial y por lo tanto no debe invertir dinero que no puede permitirse perder. Usted debe ser consciente de todos los riesgos asociados con el comercio de divisas y buscar asesoramiento de un asesor financiero independiente si tiene alguna duda. Action Bias Summary Table Mar 28 01:57 GMT Action Bias is derived from our proprietary algorithms based on technical studies of prices of currency pairs. Action Bias is NOT intended for use as trading signals. Though it is by no means 100% accurate, it could be one of the best tools for a trader to reference to before deciding on your trades. Here are some possible uses: Action Bias can be used to determine the primary direction to trade the currency pair. That is, one could only consider going long when Action Bias is on the upside and short only when Action Bias is on the downside. Action Bias can also be used to determine the exit of your trades. For example, one could consider exiting a long trade when Action Bias changes from up to neutral. Action Bias of different time frames can be used to reference each other. For example, an intraday trader could only consider going long when 4 hours and daily bias are NOT in conflict. That means, when 4 hours bias is up and daily bias is at least neutral. Action Bias of different pairs can be compared to have better understanding of the strength of a certain currency. For example, one could compare both the daily bias and weekly bias of all JPY crosses to see if there is particular underlying strength or weakness in Japanese Yen. There are just too many possibilities. Explore and have fun. A currency pair consists of two forex currencies involved in the trade. Example of currency pairs are EUR/USD, USD/JPY, USD/CAD etc. So which is the best currency pair for forex trading? There are mainly two factors that you should to take into account when considering the best currency pairs for trading. These factors are activity and the forex trading systems. First let’s see the activity part. 1. Which are the Most Active Currency Pairs? One of the best ways to begin forex trading is by choosing the most active currency pairs. Most experts will suggest you to do so due to a number of reasons. The first reason is that active currency pairs have high liquidity and this means that your stops will more often be met without slippage. Next, in case of currency pairs which are very active in the market, the costs are likely to be low. When large number of traders are trading in the forex market it creates a tighter spread, and there is also heavy competition between forex brokers which will in turn keep the fees down. So does this mean we just have to look into the most active forex market and choose the currency pair? Realmente no. If you are new to currency trading you may be surprised to learn that the most active trading floor is London. UK and not New York. However the most traded currency globally is of course US dollar. So naturally now you must be thinking that US Dollar, GBP (British Pound) pair is the most traded currency pair in the foreign exchange market. Esto no es verdad. In fact EUR/USD currency pair is the most traded forex pair. The next most active currency pair is USD/JPY and the third is GBP/USD pair. This is due to the fact that forex market is global and traders around the world are free to choose their own currency pairs. 2. Best Currency Pairs for Your Forex Trading System The most prominent factor in choosing the currency pair is of course the activity level and your knowledge about the economic conditions of a particular foreign exchange. Your forex system also could be a factor in selecting the currency pair. You might have the best forex trading system, but if chose a wrong currency pair you could end up with poor results. For example if your forex trading system involves the use of automated forex robot, you will most likely find that the particular forex trading robot is set to work with a small number of currency pairs and that the most active currency pair might always gives you the best results. For instance, you may know that FAP Turbo which the best forex software currently in the market is designed to trade EUR/GBP and EUR/CHF currency pairs. In case of FAP turbo most users observed that they are able to achieve better results with EUR/CHF pair though EUR/GBP more active pair when compared to Euro/Swiss Franc currency pair. Thought you can trade different currency pairs with a robot, a particular forex ea is always tend to give better results with a particular currency pair. Hence in such cases you should choose a currency pair which is suitable to your trading system even if it is not the most active currency pair. There is a new forex software called Ivybot which provides you 4 different currency trading in which each are designed to work well for a specific currency par. You can see the Ivybot review here. The bottom line is that unless your forex trading system is set to give better results with a particular currency pair it is always best to go for the most active currency pairs in the market. This is especially true if you are developing your own forex trading system which involves scalping. That is; if you are a beginner at forex, EUR/USD is the best currency pair for scalping. One Response to “Best Currency Pairs” Welcome to CurrencyPicks.com! CurrencyPicks.com provides Buy and Sell FOREX Signals based on Neural Network analysis of raw market data across variety of Currency pairs. CurrencyPicks.com uses a unique combination of advanced NN algorithms to locate the most consistently profitable setups. The end result is automated trading strategies have proven profitable. What is CurrencyPicks.com? CurrencyPicks.com provides accurate, easy to read, real time Forex trading signals. Trade signals (Buy/Sell opportunities) are delvered directly to your Desktop via live charts. A variety of visual & audible alerting options are available for convenience, as well as optional email alerts to keep you informed. CurrencyPicks.com is essential for trading the Forex markets Accurate speculation can be a difficult task. CurrencyPicks.com's advanced trading technology offers an essential edge - greater opportunity with reduced & emotion. CurrencyPicks.com is easy to use and install If you can use a mouse, you can use CurrencyPicks.com. CurrencyPicks.com begins working with little effort (download and go!). You may simply trade the signals that are produced by the "Currency Picks", or delve deeper to optimize for greater results. Pip value for currency pairs The value of a pip can be estimated using three methods and will depend on the trade volume; the choice of calculation method will be reliant on the currency pair: 1. If USD is the second currency in a currency pair (for example, EUR/USD, GBP/USD, etc.) then the value of a pip in a trade of 1 lot will be equal to $1; if trade volume is 0.1 lot, then it is $0.1, etc. 2. If USD is the first currency in a currency pair (for example, USD/CHF, USD/CAD, etc.) then the value of a pip in a trade of 1 lot will be 1/(the current exchange rate of a currency pair). USD/CHF = 1/(USD/CHF) => 1/1.0418 = 0.9598 (trade of 1 lot) The only exception is the USD/JPY currency pair with low ecxhange rate; here you should divide 100 (not 1) by the current exchange rate of the USD/JPY. USD/JPY = 100/(USD/JPY) => 100/105.06 = 0.9518 (trade of 1 lot) 3. When a currency pair does not include USD (for example, EUR/AUD, CAD/CHF, etc.) The value of a pip in the EUR/AUD currency pair will be equal to a pip value in the AUD/USD pair multiplied by the trade volume. In the EUR/AUD pair EUR is substituted by USD; thus you get the USD/AUD pair, which can be referred to the second method described above and equal to the ratio of 1 to the current exchange rate of the USD/AUD. But the USD/AUD is non-existent currency pair. In order to turn non-existent USD/AUD into the AUD/USD existing pair, it is necessary to divide 1 by the current exchange rate of the AUD/USD. So, the result is as follows: EUR/AUD = USD/AUD = 1/(1/(USD/AUD)) = AUD/USD => 0.9527 (trade of 1 lot). You can also use the formulas listed below: Pairing Currencies To Timeframes Forex pairs are not created equal. Some move while others slumber. Some cost a fortune to trade and others a mere dime. Some violently kill you with evil slippage while others are more kind. This varied temperament and costliness of different forex pairs are what affect their timeframe suitability. In this article I explain why forex pairs are suitable for different timeframes. MOVEMENT MATTERS To make money a forex trader needs the currency pair to move in the favored direction. Without movement we can’t make money. Each forex pair varies by how much it typically moves each day. Some move a large number of pips while others move much less. SPREAD VARIES Also variable is the spread of the currency pair. That is, unless the forex broker you trade with is artificially fixing it. The spread is the difference between the offer price to buy the currency and the bid price to sell. The spread is always a cost. When you enter a trade by buying or selling you’re always instantaneously in a loss by the cost of the spread. The price needs to move by the amount of the spread in the favored direction to reach breakeven. TIMEFRAMES IMPACT COST Forex traders typically have a timeframe as their execution timeframe. That is the timeframe that we use to select our entry, stop loss and other exits. Higher timeframes require a larger number of pips of movement whereas the same system on a smaller timeframe needs much less. For example, a weekly trade may last weeks with hundreds of pips of movement required to take it to a profit target. Compare that with a 5-minute forex trading system that will be lucky to last an hour. The spread stays the same regardless of the timeframe you’re trading. It’s totally impartial. So forex trading systems using higher timeframes cost less to trade than lower timeframes. The spread as a percentage of the distance between the entry and stop loss, which is the usual basis for calculating position size, is larger on small timeframes. The increased cost to trade is what makes small timeframes more difficult to trade profitably, all other things being equal. GATHERING DATA The average daily movement of a forex pair is a way to assess the approximate movement potential of each forex pair. When this is compared with the spread it gives an idea of the potential relative cost of trading one forex pair versus another. In this table below I’ve taken 3 snapshots of the spread within a minute of each other at a very liquid time during the European session. I’ve taken 3 snapshots to get a representative average rate. The spread excludes the cost of commission. As 22 days equates to the average number of trading days in a month, I’ve taken the average daily range for the last 22 days. This provides information on the recent movement in the currency pair. When trading small timeframes forex traders are looking for a smaller number of pips. This causes the cost to trade to be greater as the spread represents a larger percentage of the overall trade size. This is why forex scalping, where small numbers of pips are traded, are usually only done on the major USD forex pairs. KEY POINTS TO NOTE Here are some key points to note from the analysis and my experiences: • The USD crossed pairs EURUSD, GBPUSD, USDJPY, AUDUSD and USDCHF are the cheapest to trade and the most suitable for short sessional based forex trading. • As the trading timeframe length increases, more forex pairs become progressively viable. • Some forex pairs may not be deemed suitable on any timeframe with the forex trading system(s) you’re executing. • More liquid forex pairs generally have a lower relative spread cost. • My experiences indicate that forex pairs with higher spread are often associated with greater slippage. • The average movement of each forex pair changes over time with volatility. This impacts the cost to trade. TAKEAWAY Matching forex pairs to suitable forex trading system timeframes can improve your performance. The cost to trade is the first hurdle to overcome to achieve profitability. Review your forex pairs to ensure your choices set you up to succeed. 1 Comments Sobre el Autor Exotic Currency Pairs © IFCMARKETS. CORP. 2006-2016 IFC Markets es un agente líder en los mercados financieros internacionales que ofrece servicios de comercio en línea de divisas, así como futuros, índices, acciones y CFDs de materias primas. La empresa ha estado trabajando desde 2006, atendiendo a sus clientes en 12 idiomas de 60 países de todo el mundo, en total conformidad con los estándares internacionales de servicios de corretaje. Advertencia de riesgo Advertencia: La negociación en Forex y CFDs en OTC Market implica un riesgo significativo y las pérdidas pueden exceder su inversión. IFC Markets no presta servicios a los residentes de los Estados Unidos. ¿Por qué los mercados de IFC? Pares de divisas For calculation of margin it is necessary to know the following characteristics: account balance and currency (1,000 USD) leverage (1:100) currency pair (EUR/USD) trade volume (1 lot 10,000 EUR) To assess the volume of a trade, it is necessary to know what amount of your account's currency you need. = & Gt; 1 lot = 10,000 EUR => Convert 10,000 EUR in USD = 10,000 * current exchange rate of EUR/USD = 10,000 * 1.5442 = 15,442 USD Margin is the ratio of trade volume to the leverage. = & Gt; Margin = 15,442/100 = 154.42 USD Free margin after opening a trade => 1,000 – 154.42 = 845.58 USD For a new trade: leverage (1:100) currency pair (GBP/USD) trade volume 2 lots (20,000 GBP) Trade volume = 20,000 * 1.9627 = 39,254 USD Margin = 39,254/100 = 392.54 USD Free margin after opening a trade => 1,000 – 154.42 – 392.54 = 453.04 USD The Multi Currency Pair V2 indicator measures trend strength and weakness across the 7 major currencies (USD, EUR, JPY, AUD, CAD, CHF and GBP) for all time frames. Strong currencies: green color. Weak currencies: red color. BUY: Buy the strongest currency (green) and simultaneously sell the weakest currency (red). SELL: Sell the weakest currency (red) and simultaneously buy the strongest currency (green). Use in conjunction with other technical tools. EUR/USD 15 Min Chart Example Multi Currency Pair V2 Metatrader 4 Indicator. 7.0 out of 10 based on 2 ratings Artículos Relacionados: Deja un comentario I-MACD Trend Trader System Mensajes recientes Haz "like" en Facebook Comentarios Recientes Travis Mathis: Oye, esta estrategia nunca funcionó para ti, ¿hiciste algo de ca & hellip; Steven: Hombre Me gusta que heiken ashi suavizado estrategia, definitivamente lo & hellip; 1.3. Traded Currency Pair Posted in First Class By Afan On March 25, 2016 Forex trading is the buying of one currency and selling another simultaneously. Currencies are traded through a broker or dealer, and are traded in pairs, for example the euro and the US dollar (EUR / USD) or the British pound and the Japanese yen (GBP / JPY). When you trade the forex market, you buy or sell a currency. Imagine that each partner constantly “tug of war” with the currency on the other. Currency exchange rates fluctuate based on strong at the moment. Major Currency Pairs Currency pairs listed below are considered as “major”. The pair was all contain the US dollar (USD) on one side and the most frequently traded. Major pairs are the most liquid and widely traded in the world. Cross-Currency Pairs Currency Pairs Major or Minor Currency pairs that do not contain the US dollar (USD) is known as a pair of cross currency or simply as the “Cross” Major, also known as the “Minor” The most actively traded came from three currency non-USD main: EUR, JPY, and GBP. Yen Crosses Pound Crosses Other Crosses FX Basics: Currency Pairs Probably one of the most common terms you will encounter when it comes to fx, and one that you will often refer to, is the currency pair. Understanding how it works, thus, should be one of the first few things that you should do if you are new to investing in the foreign exchange market. In this article, we will introduce you to currency pairs, including how they work and what their significance is to the market. What is a Currency Pair? As the name would suggest, a currency pair is a set of two currencies paired against each other. When displayed as a quote, it simply shows the value of one currency relative to the value of another . So for example, a currency pair of AUD/USD 1.014 shows the relative value of the Australian dollar to the US dollar. What it tells us is that 1 AUD can buy us 1.014 USD. Reading a Currency Pair Currencies are read in their ISO 4217 codes—USD for the US dollar, for example, and AUD for the Australian dollar. Meanwhile, currencies that are most traded globally are called majors . which include the USD, AUD, Japanese Yen (JPY), euro (EUR), British pound sterling (GBP), Canadian dollar (CAD), and the Swiss franc (CHF). The majors comprise about 75% of all the currencies being traded in the forex market. Let’s go back to the earlier figures… The currency on the left is called the base currency, while the right of the pair is called the quote currency or the counter currency, which is the one being used as reference. As with other forms of trade, a currency pair is subject to fluctuations. So if the AUD/USD currency pair goes from 1.014 to 1.017, it could be read as the AUD increasing in its value over the USD due to the strengthening of the AUD or weakening of the USD, or both. While it has weakened due to the recent economic crisis, the USD remains as the standard unit of currency in international trade. Because of that, most major currencies are paired against the USD. Meanwhile, currency pairs that do not involve the USD are called cross currency pairs or cross rates. Most common of these cross rates include EUR/GBP, EUR/JPY, and AUD/JPY. There you have it, our brief introduction on currency pairs. We hope that what we have written above will help you gain better understanding of one of the most common concepts in forex trading. For more tips, be sure to check out our Fundamental Articles section. Until next time! Related Tags: By FX Strategy Team, Published on 5th of March 2013 At FX Strategy we provide all the necessary fx trading strategies you need to become a successful FX trader. Our fx strategy information includes in-depth technical analysis commentary on the current state of the FX market. Members of our community will receive a free FX report daily to help you identify profitable trades. Fx Strategy is the world's largest fx training school and community. Our goal is to provide all the necessary information for new or experience FX traders to obtain financial freedom. We also go a lot further than this. If you join our FX trading platform, we will provide you with the best value in terms of promotions and competitions to maximise your chance of profiting from FX trading. Put simply we give back dollars to our fx community. Síguenos Find Us . FX Strategy, FX Strategies, FX Trade, Forex Trading. FX Trading, Forex Trading Platform. Forex Trading Platforms, FX Trading Platform, FX Trading Platforms, Forex Trading Systems, Forex Online, Online Forex Trading, Online FX Trading, FX Trading Online, Online Forex Trading Platform, Online Forex, Forex Currency Trading MetaTrader Expert Advisor December 13, 2011 • sin comentarios Synthetic currency pair A synthetic currency pair allows you to reduce the spread costs of trading. If your broker charges an arm and a leg on on the cross currencies and you trade more than a few micro lots, you can potentially save a few pips by creating the cross currency on your own rather than paying for exorbitant spreads. This is especially true if your forex broker falsely classifies itself as an MT4 forex ECN. Many of these types offer very low spreads on the majors, but retain the high mark ups commonly associated with cross currencies. To determine if this makes sense for your situation, you need to calculate the pip values of the spread of the offered cross currency and the spread cost of your synthetic currency pair. Say, for example, that you trade GBP/JPY. Your broker charges a hefty, though common, spread of 7 pips. Trading one standard lot presently works out to: $100,000 = JPY 7,500,000 A 1 pip change is worth JPY 1,000, which is worth $13.33 per pip. The 7 pip spread costs $13.33 * 7 = $93 per trade. Ay. How to make a synthetic currency pair Now, we take the more cost effective approach. You want to choose two currency pairs that cancel each other out, yet offer the lowest trading cost possible. The obvious candidates are USD/JPY and GPB/USD for the synthetic cross. Cancelling out the pairs is pretty straight forward. The goal consists of multiplying something expensive with something cheaper to save on costs. Expensive cross currency Getting started with trading exotic currency pairs The forex markets are pretty much dominated by the major currency pairs, EURUSD leading the lot. However, there is a little/lesser known aspect of forex trading that is usually overshadowed by the majors. and for a reason. Before you get started with trading exotic currency pairs, you need to first understand the differences between the major currency pairs and the exotic currency pairs. In the following sections of the article, we give a primer on exotic currency pairs and the pros and cons of trading exotic currencies. Major Currencies in Forex The USD, EUR, GBP, CHF, CAD, AUD, NZD, JPY are the major currencies in forex. The reason they are called as major currency pairs is because of the high liquidity they posses, or in other words, high level of trading activity. High volume of trading goes hand in hand with liquidity and this translates to lower spreads and of course a lot of action. Further more, the trading volume of these major currencies are more or less high in comparison to the volumes one can see on exotic currency pairs. Major currency pairs in forex include a combination of the aforementioned currencies such as EURUSD, GBPUSD and so on. Within the major currency pairs, there is a sub category that is refered to as cross currency pairs. Simply put, cross currencies do not involve the USD. GBPCHF or AUDNZD are some of the many examples of cross currencies. The advantage with trading major currencies are many. Besides the liquidity they posses, the spreads charges by the forex broker is usually very low (in comparison to exotic currencies). Furthermore, based on the charts you are trading, it is possible to manage your risks well enough. Trading majors or cross currency pairs has a high level of interest as well. In fact hop over to any forum and you will find loads of discussions that involve majors and crosses but not much if you look for exotic currencies. Exotic Currencies in Forex When speaking about exotic currencies, the first thought that comes to mind with many traders is perhaps the ZAR (South African Rand) or the Mexican Peso. However, there is a bigger playing field than just these two currencies, which is what this article will focus on. The term, ‘ exotic currencies ‘ comes from the fact that the list of currencies that fall under this category is because of the liquidity issues that comes along, or in other words, the trading volumes are much lesser. However, that being said, trading exotic currencies nonetheless offers the same profit potential as that of trading majors or crosses. So what are the exotic currencies that we speak about here? For the sake of this article, we have selected some exotic currencies that have a fairly stable economy behind them. NOK – Norwegian Kroner SEK – Swedish Kronor DKK – Danish Krone CZK – Czech Koruna PLN – Polish Zloty The above exotic currencies are usually paired with either the EUR, USD or GBP as the base currency. So in effect, you would be buying or selling EUR/GBP/USD in exchange for the exotic currency. Factors to consider when trading exotic currencies Liquidity/Trading Volumes . Exotic currency pairs has lower liquidity and trading volumes in comparison to the popular currency pairs. This means that you could notice very small movements and in most cases, it could take days or perhaps hours to see a significant movement in the prices. Volatility . Exotic currency pairs, due to the nature of the prevailing respective economies are more volatile in nature. They are more susceptible to regional new events, interest rates which could result in big spikes or surges in prices. Imagine, having opened a Long order on EURPLN and waiting for close to 3 hours to see a substantial price movement only to end up seeing a big surge in prices due to some local political or economic factor. Spreads. Exotic currencies are not offered by many brokers and this is even more rare with ECN or No dealing desk brokers ( with the exception of Lmax Exchange ) Trading platform . In most cases, exotic currency pair trading is available only on the MT4 (Metatrader) trading platform. So if you are accustomed to other trading platforms, it would be quite a task to find a broker that offers exotic currency pairs on a different trading platform. The ones that do offer exotic currency trading do charge a high spread which can be a big obstacle. Imagine having to deal with a 25 Pip spread on an exotic currency that moves only a few pips every hour? Exotic Currency Trading requires a different strategy Exotic currencies require a different approach to trading majors or crosses. In most cases, it is highly unlikely that you would be able to make good profits with intraday trading strategy. What does work with exotic currencies trading is swing trading (holding on to a position over days). This requires good money management strategy (Lot size and stops) as you need to factor in the aspect of volatility as well. A few such instances could potentially wipe out your capital. What makes exotic currency trading easier is when you trade over a few days or even weeks. This makes your positions better immune to the day to day economic or other price influencing factors thus giving you a better chance at taking in profits. In terms of trading strategies, the same indicators that you use for trading majors and crosses apply to exotics as well. But do pay attention to the spread. For example a signal from an EMA-SMA-PSAR and RSI set up might prompt you to either go long or short, but if the broker charges at 25Pip spread then unless the indicators are strong, you are likely to lose money rather than make any. Forex Brokers with Exotic Currencies Below is a list of forex brokers that offer exotic currency pair trading and includes the spreads they charge as well. Note that the brokers mentioned below was considered only on the previously mentioned currency pairs. You can do your own research should you wish to trade other exotic pairs such as USDTRY, etc. * Values represented in Pips for 5 decimal pricing * LMAX Exchange experiences the best spreads during early European-London Session and early London-US Session To conclude, exotic currency pair trading is worth exploring. It offers a good risk-reward ratio if you manage to learn how and when to enter/exit your positions. Also bear in mind that the swaps charged by the forex broker. As a thumb rule, forget about scalping when trading exotic currencies but rather look at holding your positions over a longer period of time. Exotic currency pair trading can offer you a totally different trading experience, compared to majors/crosses. El equipo editorial de ForexPromos se compone de una selección de editores elegidos a mano que le brindan las últimas noticias de última hora de los mercados financieros. También proporcionamos artículos educativos forex, así como exámenes exhaustivos fx broker. Share This Post You might also like: Getting an edge with Forex Tools – Order Book Dealing Desk or Non Dealing Desk? & # 8211; The SNB Aftermath Variable spreads and why they matter Trading Correlations – Introduction to pairs trading Corredores de Forex RISK WARNING: Forex and other leveraged products is risky and not suitable for all investors, and can potentially lead to substantial losses of your capital. Information contained on this website should not be construed as investment advice. ForexPromos.com, the brokers we represent, authors and members of our editorial team and/or our affiliates are not liable for any losses incurred. Please consult your financial advisor before you start trading and to understand your risk tolerance. Este sitio web utiliza cookies para mejorar su experiencia. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More Currency correlation Currency correlation happens when the price of two or more currency pairs moves in conjunction with one another. There can be both positive correlation, where the price of the currency pairs moves in the same direction and negative correlation, where the price of the currency pairs moves in opposite directions. As a forex trader, it is important to understand the relationship between currency pairs, because currency correlation can affect the exposure and risk to your trading account. Currency correlation is when the price of two or more currency pairs move in conjunction. It can affect the exposure and risk to your account when trading more than one pair at a time. Currency pairs incorporate two economies Currency pairs are made up of two separate currencies and they are valued in relation to each other. Each currency belongs to an economy that can affect the supply and demand of it. If the value of one currency increases (or decreases), it increases (or decreases) across the board against all other currencies, not just a single one. For example, if the euro increases in value against the US dollar, it is likely to increase in value against all other currency pairs as well, not just the US dollar. This means that currency pairs cannot be traded in isolation. This does not mean that a currency value will change at the same rate against all other currency pairs. For example, if the euro rises against the US dollar by 100 pips, it does not mean that there will be a 100 pip increase against the Australian dollar. However, it will likely rise against the Australian dollar to a certain degree. Positive correlation Positive correlation means that two currency pairs move in the same direction – if one currency pair moves up, so does the other. To illustrate this, let's take the example of the EUR/USD and the AUD/USD . The EUR/USD is made up of the euro and the US dollar. If the price of the EUR/USD increases, this can mean that either the euro is in more demand or the dollar is in less demand. Either scenario will result in the price of the euro increasing against the dollar. An example of positive correlation — if there is more demand for the dollar, then there will also be more demand for the dollar against other currency pairs, because there will be more demand for the dollar overall. If there is less demand for the US dollar, then there will also be less demand for the US dollar against other currency pairs, because there will be less demand for the US dollar overall – it does not become weaker against one currency only. If the EUR/USD increases because the USD has become weaker, you can expect that the AUD/USD will also increase. This is an example of a positive correlation between the EUR/USD and AUD/USD. Negative correlation Negative correlation means that two currencies move in the opposite direction to each other – if one currency pair moves up, the other moves down. To illustrate this, let's use another example, this time of the EUR/USD and USD/JPY. An example of negative correlation — if the demand for the dollar decreases, then the EUR/USD will increase whereas the USD/JPY will decrease . If the demand for the dollar decreases, then the price of the EUR/USD will increase, whereas the USD/JPY will decrease. This is because the price of the USD is denoted differently for these two currency pairs. US dollar weakness will be shown as an increasing price for the EUR/USD and seen as a decreasing price for USD/JPY. Trading more than one pair at a time Due to correlation between different currency pairs, there are considerations that you have to take into account when trading more than one currency pair. Currency correlation can increase the overall risk to your trading account Let’s say that you risk 2% of a trading account on a single trade. If you open a long position on both the EUR/USD and the GBP/USD, then it would appear that you have opened up two trades with a 2% risk on each. However, because there is a positive correlation between the EUR/USD and GBP/USD, if one currency pair moves in one direction, the other currency pair is likely to as well. This means that if one currency pair moves against your trade, the other will too. Because you have risked 2% on each trade that is correlated, this is effectively the same as risking 4% on a single trade. Correlating trades can cancel each other out Correlating trades can cancel each other out. For example, if you open up a buy order on the EUR/USD and a sell order on the GBP/USD, then it is likely that any profit made on one trade would be offset by the loss on the other side. If a trader opens up a long position on the EUR/USD and a short position on the GBP/USD, then because they are likely to move in the same direction, one will produce a profit and the other will produce a loss. Any profit made on one trade would be offset by the loss on the other. Opening up opposite positions on a strongly correlated currency pair is counter-productive. Similarly, if a trader opens the same position on a negatively correlating pair, such as the EUR/USD and the USD/JPY, then if one position results in a profit, the other will result in a loss. Any profit gained on one trade is likely to be offset from the loss on the other. Correlations can be measured The correlation between currency pairs is not exact. Depending on the fundamentals behind them, a currency correlation can become stronger or weaker – they can also break down completely. The financial industry generally measures correlations using a scale from +1 to -1: +1 = perfect positive correlation -1 = perfect negative correlation 0 = no correlation at all You can use a correlation table to quickly see the correlation between a range of currency pairs. The following table demonstrates the extent of the correlations between different currency pairs (please note this is just an example): From the table it can be seen that over the course of a year, the EUR/USD had a near perfect correlation with the AUD/USD, at a correlation measurement of 0.93. However, in a shorter time period, the currency had a weaker correlation measurement of just 0.5. Traders can use tables such as these to determine correlations when trading more than one currency pair in the time frame they are trading in. Using currency correlation to your advantage Currency correlation can hold advantages when trading, because observing one currency pair can give you an insight into another, if they are correlated. Confirming trades and analysis Correlation can be used to confirm a trade, or your analysis, on a particular currency pair. Correlation is never exact and so you are looking for the same ‘kinds’ of moves, but they will not be exactly the same for each currency pair. To use currency correlation to your advantage . you can look at the set up on one particular currency pair and notice the same type move with other, correlating, currency pairs, this may make you feel more comfortable about taking the trade on your initial set up. The idea is to look at whether the positively correlating pairs are moving together with the currency pair that you are watching. So if you are observing a currency pair move down, you can use other currency pairs that positively correlate to see if they are also moving down, confirming that your analysis is correct. To illustrate, let's say that you are observing the EUR/USD pair. You observe that the price is moving down and you are considering whether to enter a short trade. You can use positively correlating currency pairs, such as the AUD/USD and GBP/USD, to see if there is a similar down trend occurring. If there is, that means that the move is most likely due to a fundamental factor, making it more likely that a trend will be established. This may make you feel more confident about the trade on the EUR/USD. The chart below shows an example of all three currency pairs moving in the same direction, making it more likely that a short trade will work out. number_1 - EUR/USD is declining number_2 - AUD/USD confirms downtrend number_3 - GBP/USD confirms downtrend even further Avoiding bad trades Correlation can also be used to keep you out of bad trades, such as a false breakout . If you are observing a currency pair that has been in a range and you observe a breakout to the upside, you can use positively correlating pairs to see if they have also broken to the upside. Let's look at another example using the EUR/USD, AUD/USD and the GBP/USD. In the following chart you can see that the EUR/USD had been trading in a range and broke to the upside, marked by number_1 : number_1 - EUR/USD is breaking out number_2 - At the same time, the AUD/USD is moving in the opposite direction number_3 - GBP/USD is also not breaking to the upside You can see that even though there is a breakout on the EUR/USD, there is no confirming movement on the AUD/USD or the GBP/USD. You can also see that after a very short time, the EUR/USD then fell. By using currency correlation, you can avoid bad trades. Resumen So far, you have learned that. . currency correlation happens when two or more currency pairs move in conjunction with one another. . positive correlation between currency pairs means that the price of each currency pair moves in the same direction. Negative correlation between currency pairs means that the price of each currency pair moves in opposite directions. . currency pairs are made of two separate currencies. Each one belongs to an economy that can affect the supply and demand of it. . currency pairs cannot be traded in isolation because if a currency rises in value, it will rise in value across all other currencies to a degree, not just one. . currency correlation can result in increased risk when trading two or more strongly correlated pairs. . currency correlation can also result in trades cancelling each other out. . correlation can be measured with +1 being a perfect positive correlation, -1 being a perfectly negative correlation and 0 being no correlation at all. . you can confirm your trades, or analysis, by looking for the same movement on positively correlated currency pairs to the currency pair that you are observing. . currency correlation can also be used to avoid false breakouts. Get our TOP TIPS FOR INDEPENDENT THINKERS Get our top lessons for serious new traders as well as broker and software promotions regularly to your email address. Understanding Currency Pairs in Forex Currency Trading Buying and selling of forex in forex trading is done in pairs of currencies. Under this, two different currencies get quoted. One currency is called the base and the second constitutes the quote or counter currency. For example, EUR/USD is one pair of currency. Under this pair, EURO is the base currency and USD or US dollar is the counter currency. Here, it has to be seen how many units of the counter currency are needed in order to buy a unit of the base currency. The quotation EUR/USD 1.2500 will mean that 1.25 of US dollar will be needed to buy one unit of Euro. The above rate may go up or down as USD strengthens or weakens. Trading always takes place in combination of two currencies or currency pairs. There is always a long (bought) and short (sold) side to any forex transaction. One buys Euro (long) in exchange for yen (short) or sell sterling pound (short) in exchange for Euro (long). Profits or losses are reflected in the second currency. The seven main currencies are USD, JPY, EUR, GBP, CAD, AUD, CHF (Swiss Franc). The most important currency pairs called the majors are EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/AUD and USD/CAD. The majors are the most liquid and widely traded currency pairs in the world. All major forex trades account for more than 90% of the total daily transactions. While undertaking Fx trading, one should also understand symbols and trading terminology. The symbol for pound / USD pair is GBPUSD and the associated trading terminology is called cable. Other terminology terms are Euro, dollar yen, Swissy, dollar Canada, Aussie etc. These are used just for the convenience of traders. There is not much to remember in symbols, pairs or terminology. Reading them once or twice is enough. There is very little to remember and one can become familiar with all this stuff within no time. Every position involves the selling of one currency and the buying of another, e.g. USD vs. Yen or USD vs. Swiss. Traditionally, the stronger currency is the base. If the Swiss franc is going to appreciate against the dollar, then sell dollar and buy Swiss Franc and the like. While deciding which way a currency is going to move, listen to economic data and other financial information. Potential for profits exists as long as there is movement in the exchange rate. This is because one side of the pair is always gaining. All that is necessary is that an investor has to be on the right side. Which Currency Pairs Have the Highest Volatility? Which Currency Pairs Have the Highest Volatility? Today I am going to share with you the most useful tool I know for finding which currency pairs are having the biggest moves (after all we traders like to trade things that are moving!) and how to set your take profit and stop levels to current market volatility. The Average True Range (ATR) indicator tells you what the average range over the last X amount of periods has been in pips. By using the ATR reading you will know how big are the current moves of a currency pair and if you should be tightening up or widening your stop loss and take profit levels depending on the size of the range. Which Currency Pairs Have the Highest Volatility? You can use this Currency Volatility Chart tool by Oanda to find the currency pairs with the biggest movements. This is a useful tool if you are looking to find quickly which pairs are having big moves at the moment. How to Use ATR to Set Stop Loss & Take Profit Levels Markets are constantly moving between two types of phases most commonly called trending or breakout and ranging or consolidation. Do you think it is smart to use the same take profit and stop loss levels for both types of markets? Por supuesto no. When markets or currency pair’s ranges are expanding you want to use a larger take profit and stop loss level and when they are contracting you want to tightening them up. Depending on your style of trading you will use the ATR differently than another trader. Some helpful hints. If you are using a 1/2 ATR stop loss than your take profit should be at least 1 ATR. You will also want to get creative. For example if you enter with one position using the above levels you will also want enter a second position with the same stop loss and a different take profit for example a 1.5 ATR take profit. But on this second position moving the stop loss to breakeven once price reaches .75 ATR. You can get extremely creative in your positions and sizes giving yourself a necessary edge in trading. My Settings and ATR Indicator Download The default and best setting to use for the ATR indicator is to set it to the fourteen period. I have a specially modified ATR indicator that I use which no matter what time frame I am viewing on metatrader 4 it is going to show me the reading of the ATR on the daily time frame plus it also automatically does not include the Sunday pre-market price bar making this much better than the ATR indicator that comes default with metatrader. You can download it here . Share This Story, Choose Your Platform! A solid understanding of how currency correlations work is a very important part of Forex trading. Certain currency pairs will often move together, while others seem to move in opposite directions. There are different reasons why this happens, but the main thing you need to know is there are relationships between the different pairs. Once you understand these relationships, you can use this information to help control your trading exposure. Currency correlations are expressed on a scale between -1 and +1. A correlation of -1 means that the two currency pairs move in opposite directions 100% of the time, while a +1 implies the pairs will move in the same direction 100% of the time. The chart below shows the correlations between the EUR/USD and the other six main pairs. If you look at this chart, you'll notice USD/CHF moves opposite to EUR/USD most of the time, while GBP/USD moved the same as EUR/USD 35% of the time over the last month. These relationships are constantly changing, and are usually shown in 1 month, 3 month, 6 month and one year periods. If the shorter periods are significantly different from the longer term relation, there is usually a change brewing, so beware. If you are interested in calculating your own correlations, drop me a note from the About the Author page and I'll send you the instructions of how to perform the calculations yourself. Use Correlations to Help Manage Your Exposure You should avoid entering trades where two different pairs would cancel each other out, although this can be used to hedge a position that you don't want to close. By the same token, trading two pairs that move together is much like doubling up on your trade. watch your leverage! You can use correlations to diversify your trading. Entering two positions which move somewhat in the same direction helps reduce the risk associated with trading only one pair. Rarely do the same economic factors exactly affect two different pairs to the same degree. В©2006-2013 Make Money Trading Forex. Todos los derechos reservados. Click to view Disclaimer / Risk Statement Choosing The Best Currency Pair The two main features you need to look at when you want to know which currency pair is the best for your forex trading strategy are the trading volume of the currency pair and the fundamentals of the economies behind the currencies. 1. Trading Volume of The Currency Pair If you are into forex trading for quite a while, you have probably heard that you should choose the currencies that are traded the most. The basic reason for that is that these currencies are highly liquid which means that you will enter your trades exactly where you want and you will not suffer often from slippage. Another important reason is that brokers offer tighter spreads and lower fees for these currency pairs because there is strong competition between them and additionally the majority of traders trade with these currency pairs. The most traded currency pairs are 3 and US dollar is included in all of them. The pair with the highest volume is Euro and US dollar or EUR/USD, second in volume is the Japanese Yen and US dollar or USD/JPY, and the third one is the British pound and US dollar or GBP/USD. 2. Fundamentals Of Currency Pairs The correlation between two countries economy is a very important factor, which determines how the currency pair of these countries behave in the forex market. For example, the pair of Euro and British pound usually does not make big moves because the economies of Eurozone and Great Britain have a strong correlation and they have common economic interests. On the other hand, pairs like EUR/USD and USD/JPY tend to be more volatile because the correlation of the economies behind the currency pairs is not so strong. Related Articles: How to Choose Currency Pairs Choosing currency pairs to work with can be one of the most difficult parts of the Forex trading process. You want to choose the pairs are going to be the most profitable for you in the long run. Here are the basics of how to choose currency pairs in the Forex market. Average Daily Range Every currency pair moves differently and has its own unique tendencies. Because of this, not every pair is going to work with the strategies that you use. One way that you can distinguish between pairs is by looking at the average daily range that it moves. Every day, the currency pair is going to move a certain amount of pips. The higher the average daily range is, the more active that pair is. Whenever you are looking at the average daily range of a currency pair, you want to make sure that you look at the pair over an extended period of time. Sometimes, currency pairs will move a certain way for a few weeks and then go back into their old ranges again. By looking at the average daily range, you will be able to tell how much the currency pair usually moves over the course of a trading day. Clarity of Patterns Something else that you will want to look at is the clarity of patterns that are created by this currency pair. If you are going to use technical analysis, you need to be able to determine when a pattern is performing with a particular currency. Otherwise, you will not have much luck when it comes to predicting which way you should trade. Ideally, you would like to be able to trade with a large trend when it occurs. However, if you are working with a currency pair that does not illustrate its trends very well, you are not going to be able to profit with this method. Some currency pairs move up and down without actually forming a clear pattern. If you are the type of Forex trader that likes to trade the trend, you are not going to be profitable with this type of pair. For example, the GBP/USD and the GBP/JPY pairs are two that clearly demonstrate their patterns. Whenever the market picks a direction with these two pairs, it will typically move over 100 pips before going back the other direction. Whenever you are looking at a currency pair, you also want to make sure that it fits in well with your unique trading style. There are many different methods that you could potentially use to trade the Forex market. Whenever you select a trading method, you need to make sure that the pairs that you trade fit well with this strategy. For example, if you are a scalper that likes to take small pips out of the market, you might decide to work with a currency that moves back and forth like the EUR/CHF or AUD/NZD. If you are a long-term trader, you might lean towards the GBP/USD or GBP/JPY pairs. Know Your Currencies: Inverse Relationships Know Your Currencies: Inverse Relationships Monday, November 5th, 2007 @ 3:01 pm by Sunil Mangwani In the forex markets, it’s worth knowing the characteristics of the currency pairs, since each of them exhibit distinct identities. Most of the currencies exhibit similar movement patterns, which can help a trader confirm price movements. One such close relation can be found between the EUR/USD & USD/CHF . The price movements of these two currency pairs are absolute mirror images . In short, they have an inverse relationship: If EUR/USD is rallying, then USD/CHF should have downward movement, and vice-versa. The following chart has a comparative price movement of both these currencies, and this inverse relation can be seen very clearly. The most obvious fact is that one must not trade both the currencies at the same time. If one is long the EUR/USD . logically one should not be long the USD/CHF at the same time, since the USD/CHF would have a downward movement. Neither is it advisable to take opposing trades on these two pairs, because if the trade goes wrong, then the trader would incur losses in both the trades. Ideally, one should trade either of the two pairs. The best way to take advantage of this fact is to cross-check a trade by looking for confirmation factors on the other pair. If a trader is planning to take a Long position in the EUR/USD . he can look for a similar Short setup on the USD/CHF . If such an opposite setup is present in the USD/CHF . it only adds further credence to his long EUR/USD trade. There are other currency pairs also which exhibit a close relation as well. Another fact is that each currency has an approximate Average Daily Trading Range (also known as the ADR), which it follows in the normal course of the trading day. While this is not written in stone, it serves a good “Rule of Thumb” to estimate the movement of the particular currency. Thus it is worth studying these relationships to gain an edge in the market. Sometimes it is this basic knowledge, which can be the dividing line between success and failure. Tags: Corellation. EUR/USD. USD/CHF Posted in Tips and Strategies 3 Responses to “Know Your Currencies: Inverse Relationships” November 5, 2007 at 6:19 pm Along the same line of thought, I would like to emphasize a particular point related to the traders’ need to know their currencies. Not once I have heard a trader say: “EUR/USD was not giving me good results, so I switched to USD/CAD. Then again, I found the pair was not following my strategy, so I’ve just decided to switch to EUR/SEK instead…”. And so on, there are traders who keep changing their currency of choice on a daily or weekly basis, hoping that the new pair will respond better to their trading decisions. Actually, the truth is that no pair can trade on its own, and if a trader loses money consistently trading EUR/USD or USD/CAD, it is probable that he will have the same poor results on EUR/SEK or any other currency pair. Lack of education and confidence together with the absence of a coherent trading plan – they all lead to bad trading, and bad trading remains bad trading regardless of the pair our trader has chosen. The answer to his/her problems is definitely NOT there… Actually, it is not the pair who should be following the trader’s strategy (as he may think), but on the contrary: the pair has to be chosen in such a way as to allow the strategy produce the expected results… Strategy remains paramount to profitable trading and just changing the currency pair(s) again and again will not change this basic fact. I will come back with 2 possible answers to this particular problem, which generally solve the traders’ “Which Pairs Should I Trade?” dilemma. After that, 3 words must stick onto our trader’s brain: EDUCATION and MONEY MANAGEMENT. There is no bold bold enough to emphasize them… September 10, 2009 at 1:41 pm September 10, 2009 at 4:17 pm I love your site. Love design. I just came across your blog and wanted to say that I?ve really enjoyed browsing your blog posts. Sign: ndsam Deja una respuesta Our Global Forex Community Next Free Forex Webinar Free Market Commentaries Enter your email address to receive our FREE daily market commentaries: Which currency pair trends most often & most smoothly during the UK trading session? With a trend following strategy it would be Ideal to trade the currency pair cross that experiences the most trends, biggest price moves, and experiences the least periods of ranging/consolidating price action. As I see it GBPUSD trends well, and price moves quickly. EURUSD price action is more stagnant and price moves are comparatively less than GBPUSD due to it being more difficult for EURUSD to move than GBPUSD due to a deeper/thicker EURUSD order book. Then theres another big list of currency pairs which I haven't looked at too closely. Basically I'm looking for the currency pair that during the UK trading session has the smoothest trends, the most frequent trends, biggest pip moves, and least periods of consolidatory price action. I'm wondering if any statistics exist anywhere that would help prove that one currency pair is more suited to trend following strategies than any others. All input welcome! Gracias. I'm not yet trading FX at the mo. But having said that and taking a macro view, why don't you look at the some of the FX crosses where high yield currencies are financed through the ultra low yield "carry trade" currencies like Yen and SFr? Or, have a look at the generally appreciating Far Eastern (x Japan) currencies against the US$? __________________ Audere est Facere "The trend is your friend and divergences are your best friend until the bend at the end" Party on like it's 1930, until Mr C (Wave) gatecrashes the party. May 2, 2007, 10:58pm Joined Oct 2005 To be honest, I think there is no such thing as "the currency pair that trends the best and in the cleanest form in the UK trading session". Do remember FX is a 24 hr market. Yes, 25%ish of liquidity happens in London, and GBPUSD represents an important chunk of it. However, how many days havent you seen GBPUSD simply range-consolidate during the UK session? The point I am trying to make is that FX (any pair any trading session) will go through phases where price contracts (consolidates) and explodes (trends). The issue is to be able to know which is happening during the UK session I suggest looking at: EURUSD EURCHF EURJPY GBPUSD USDCHF AUDJPY those are the ones that for me do the job in terms of "low spread" vs reasonable average day range. May 3, 2007, 7:52am Joined Dec 2002 Originally Posted by jacinto EURUSD EURCHF EURJPY GBPUSD USDCHF AUDJPY Yes those pairs along with GBPJPY, AUDUSD & GBPCHF are the ones on my short list. Besides having the pair with the smoothest trends & the least amount of time spent in a range, it would also be ideal that if during the UK session the most "ideal pair" was least affected by economic news. But perhaps this is asking for too much Originally Posted by JTrader With a trend following strategy it would be Ideal to trade the currency pair cross that experiences the most trends, biggest price moves, and experiences the least periods of ranging/consolidating price action. As I see it GBPUSD trends well, and price moves quickly. EURUSD price action is more stagnant and price moves are comparatively less than GBPUSD due to it being more difficult for EURUSD to move than GBPUSD due to a deeper/thicker EURUSD order book. Then theres another big list of currency pairs which I haven't looked at too closely. Basically I'm looking for the currency pair that during the UK trading session has the smoothest trends, the most frequent trends, biggest pip moves, and least periods of consolidatory price action. I'm wondering if any statistics exist anywhere that would help prove that one currency pair is more suited to trend following strategies than any others. All input welcome! Gracias. U r reading my mind. which pair u can feel easly if it is trending. What Jacinto said. Stick to the main 4 and out of them it has to be cable and/or Swissy for the stronger longer thrusts. Eur/usd is the most heavily traded, European time but because of this it can be very choppy because of the push me/pull you effect. (Who says I can't get technical?) The extra spread on cable is nothing, (Assuming your entry is good) compared to the bigger runs that Cable can put in. Also look at the jap. I think that is a favourite of Trader Dante a the moment. "Adapt or die!" Said the Coackroach to the Dinosaur. Beware of false signals bearing gifts. "I have seen the enemy. and it is me ." Follow the path of least resistance. Originally Posted by options What Jacinto said. Stick to the main 4 and out of them it has to be cable and/or Swissy for the stronger longer thrusts. Eur/usd is the most heavily traded, European time but because of this it can be very choppy because of the push me/pull you effect. (Who says I can't get technical?) The extra spread on cable is nothing, (Assuming your entry is good) compared to the bigger runs that Cable can put in. Also look at the jap. I think that is a favourite of Trader Dante a the moment. Yah. i have noticed this when i watch EUR. what u mean jap ( usd/yen ). Eur/jpy or gbp/jpy Look a the charts to tell you which one is in favour. I have never traded either of these, so I know nothing about them. Just passing on that another trader has chosen to trade the Japanese currencies at some recent point in time. Myself at the moment scalp the eur/usd and trend trade the cable, gbp/usd Or in any case. Try to. "Adapt or die!" Said the Coackroach to the Dinosaur. Beware of false signals bearing gifts. "I have seen the enemy. and it is me ." Follow the path of least resistance. Originally Posted by options Eur/jpy or gbp/jpy Look a the charts to tell you which one is in favour. I have never traded either of these, so I know nothing about them. Just passing on that another trader has chosen to trade the Japanese currencies at some recent point in time. Myself at the moment scalp the eur/usd and trend trade the cable, gbp/usd Or in any case. Try to. I am a day trader. and i tried poundyen it is very choppy b4 it trends and this is a little bit annoying What are Currency Pairs While trading currencies, always two transactions will take place simultaneously. This has to do with the fact that currencies are always traded in pairs, named the so-called currency pairs. A well-known example of a currency pair is EUR/USD. The first mentioned currency as part of a currency pair is also called the base currency and the second currency is called the counter currency or the quote currency . In the case of EUR/USD, the EUR is the base currency and the USD is the de counter/quote currency. EUR/USD = Base Currency/Counter Currency How do you have to read the price of a currency pair? The price of a currency pair is always reproduced by means of a number consisting of four digits behind the comma. The only exception to this, are the currency pairs, in which the Japanese (JPY) appears. If that’s the case, the price always will be reproduced with two digits behind the comma. An example of a number with four digits behind the comma, is the price of EUR/USD which is quoted at 1,3582. This means, that you’ll have to pay 1,3582 USD to be able to get 1 EUR. An example of a currency pair with two digits behind the comma, is the price of USD/JPY which is quoted at 83,46. In this case you’ll therefore have to pay 83,46 JPY to get 1 USD. In fact the price expresses how much of the counter currency you’ll have to pay to buy one unit of the base currency. Hierarchy of the base currencies The Euro (EUR) as part of a currency pair is always the base currency and that’s the reason why a currency pair containing a Euro, always starts with EUR. In that case you may consider EUR/USD, EUR/GPB. EUR/JPY, EUR/CHF etc. As for the British Pound (GPB) in fact the same applies. The GPB is also always the base currency in case of currency pairs . except in case of EUR/GPB. In this case you may consider GBP/USD, GPB/JPY, GBP/AUD etc. Be Sociable, Share! This is a trading item or a component that was created using QuantShare by one of our members. This item can be downloaded and used by QuantShare Trading Software . Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices. You can use this item and hundreds of others for free by downloading QuantShare . Top Reasons Why You Should Use QuantShare: Works with US and international markets (stock, forex, options, futures, ETF. ) Offers you the tools that will help you become a profitable trader Allows you to implement any trading ideas Exchange items and ideas with other QuantShare users Our support team is very responsive and will answer any of your questions We will implement any features you suggest Very low price and much more features than the majority of other trading software This item downloads 1-minute intraday data from Finam for 12 currency pairs. The Forex pairs are: AUDUSD, CHFJPY, EURCHF, EURGBP, EURJPY, EURUSD, GBPUSD, USDCAD, USDCHF, USDDEM, USDJPY, USDRUB. Using this trading object you can download more than 3 months worth of 1-minute bars. Once you save this Forex Intraday item, open it, select a start and end dates and then click on Start. 1 minute backfill for the above currency pairs will be downloaded, parsed then added to your intraday database. You can specify to download only the last day by settings the start and end dates to today. Historical EOD data for these currency pairs is also downloaded from the same provider and it can be found here: Forex Data Some other Forex related objects: Currency Pairs Calendar Data allows you to download economic events data. You can then display it on an intraday/historical chart or use it as a trading rule in a system or a strategy. Forex Tweets gets realtime tweets for several currency pairs. As with the previous object, the data is stored in a custom database and it can be accessed using the QuantShare language. Commitments of Traders is another great trading item that downloads and parses a report of more than 120 futures. The report contains also some currency-related futures such as the US Dollar Index, the Canadian dollar, the British Pound or the Euro FX. You have to log in to bookmark this object What is this? Currency Pairs Related to US Dollar Index In today forex faq, we have a question from one of our fellow traders who has experience in trading index for about 2 years. Below is his question: “I have been trading indexes for 2 years and also just started currencies a month ago (particularly usdjpn, usdchf, audusd, eurusd and gbpusd). To trade them I always have the DOLLAR INDEX as the guide. so if the dollar index is trending up, i would buy the dollars versus its currencies and likewise I would sell on the currencies versus the dollars. And visa versa for a down trend. So far its been benefiting. but since I am knew with forex, I would like to have this theory confirmed. Personally I find the US dollar index more related to the USDCHF pair. In fact, when the index is trending up, you will most probably see the USDCHF moving in alignment to it. As for the other pair, I find them not so much in alignment as compared to the USDCHF. When I am trading the USDCHF, I will usually check the dollar index as part of my trading analysis. Below is another question from our fellow traders How do moving average work? I must say that the moving average is one indicator that I never leave behind in any chart. This is because the moving average has many uses and can be integrated into many different strategies. You can take a look at my posts on the following area I hope that this information is useful for your trading and do give your say by commenting below. Comentarios 4 Responses to “Currency Pairs Related to US Dollar Index” I am one of numbers of subscriber on your site because the article here are million dollars worth. I ‘ve burn my account twice but i still have interest in trading but before i go back to it i will like to know some facts. Please, is it true that some Brokers will trade against the customers (traders) or its just our unprofessional trading strategy(ies) and not the brokers. Thks for joining my newsletter as a subscriber and I am happy to know that you find my articles useful for you. As for your question, I must say that there is no brokers who trade against their customers as they make money from the spread and not your winning or losing. No matter you win or lose, your broker made the same amount of money from the spread they offer. It is usually due to the trader themselves trading with strategies that are not well practice that make them lose their money. USDJPY is another pair that correlates in tune with the us-dollar-index many times. then on the other hand, for the yen to deviate from that correlation, the economic factors also play their role.. Trading ETF Currency Pairs Sep. 3, 2010 5:46 AM by Market Rewind Wednesday’s Wall Street Journal reported foreign-exchange currency trading volume at over US $4.0 billion per day. [ See "Currency Trading Soars " ] While the ETF currency tracking indices have neither the volume, round-the-clock possibilities, nor the narrow spreads, they do make for convenient means of testing various currency pairs performance. Before running ETF Rewind tests, I hypothesized that the trending characteristics of currencies would make this a difficult enterprise. However, after a little perseverance and over 100 combinations later, it turns out that with sufficient volatility, currencies moving in tandem still present opportunity ( click on chart to enlarge )…. Is it a surprise that the fast moving Japanese Yen (NYSEARCA:FXY ) has recently presented one of the better matches? The chart above highlights the pairings with the best return/equity curve linearity combination over the last six months, including, among others, FXY. BZF/ BNZ & CEW, all characterized by back-tested returns exceeding twenty percent and returns linearity approaching 90%. Read full article The 10 most heavily traded currency pairs in the Forex market Forex, also known as the Forex market, a way for individuals, corporations and financial institutions for trading currencies with the aim of gaining profits from initial investments, Forex market is different and unique, three markets (the u.s. market and the European market and Asian market) work at least at the same times during the week, this makes the Forex market is open and available for trading throughout the week, making currencies available for trading at any time. All currencies have the opportunity to deliberate, as any football game there are always players who play a full game, and there are players who play a certain length of time of the game, on the Forex market there are coins trading more frequently than others. Norwegian krone. Hong Kong dollar. the Swedish krona. Norwegian krone comes in 10th place in the race for the most actively traded foreign currencies in the Forex market, with daily transactions stood at approximately 1.5%, whereas Hong Kong dollar currency comes in ninth grade after the Norwegian krone, by about 2% of daily transactions, followed in order by Swedish krona currency exceeded 2% of daily transactions. The Canadian dollar, Australian dollar and Swiss franc: Find Canadian dollar himself occupied the seventh grade in the 10 most heavily traded currencies list in the currency markets, with the proportion exceeded four percent of daily transactions, while the Australian dollar was ranked sixth on the list, with daily transactions exceeded 5%, whereas the Swiss franc it mediates list occupation number 5 on the list and the ratio of daily transactions on the Swiss franc of more than 6 percent. Sterling, which often compares with the us dollar, is ranked fourth on the list of most actively traded currencies, by about 17% of daily transactions, come Kiss Japanese yen in third place by more than 20% of daily transfers. The euro and the us dollar: The euro is important, because a common currency for several countries, including Germany, the Bank from which most trades in the Forex market is Deutsche Bank, for this reason the euro is the second most traded currency in the forex markets, with daily transactions convergence 37%, tops u.s. dollar this race easily by daily trading amounted to nearly 90 percent. After the tenth grade comes straight work NZD ranked 11, and Mexican peso currency, ranked 12, Singapore dollar ranked 13th and 14th-ranked South Korea, Wen comes, and pose other currencies rate 14.5 percent of daily transactions in currency markets. Artículos Relacionados: 12:48 pm By admin The dollar rose to its highest rate against other major currencies in thin trading Friday, with enhanced news about modifying the increase to growth in the Read More » 1:42 am By admin There are a number of important observations to be taken into account when choosing a Forex broker you will be dealing with on the Internet. Leer más & raquo; 12:17 am By admin Daily Forex trading swept through America. Some investors were extremely successful and enormous profits in very short time. On the contrary, there are others had suffered Read More » 11:34 pm By admin Often finds the novice in trading on the Forex market difficulty in choosing between the best Forex companies to avoid the swindler companies deployed in the Read More » 11:32 pm By admin Forex, also known as the Forex market, a way for individuals, corporations and financial institutions for trading currencies with the aim of gaining profits from initial Read More » What is forex?В Foreign exchange trading, also known as FX and forex, is the simultaneous buying of one currency and selling of another.В What is foreign exchange trading? Forex is one of the most widely traded markets in the world, with a total daily average turnover reported to exceed $5 trillion a day.В It's one of the largest and most liquid financial markets in the world, with different currencies constantly being exchanged as individuals, companies and organisations conduct global business. The forex market is not based in a central location or exchange, so it's open 24 hours a day from Monday morning through to Saturday morning.В Foreign exchange trading enables you to take advantage of rate fluctuations across a wide range of currencies. Forex is always traded in pairs – for example EUR/USD. You speculate on whether the price of one country's currency will rise or fall against the currency of another country, and take a position accordingly.В CMC Markets was one of the first companies to provide online forex trading. You can trade CFDs in forex. We offer all of the major crosses (or cross pairs), as well as a large selection of minor, exotic and emerging market currency pairs.В Base and counter currency Using the EUR/USD currency pair as our example, the first currency, EUR, is called the 'base currency' and the second currency, USD, is known as the 'counter currency'.В How does forex trading work? When trading forex, you always speculate on whether the price of the base currency will rise or fall against the counter currency. So in EUR/USD if you think EUR will rise against USD, you go long (buy) the currency pair. Alternatively, if you think EUR will fall against USD (or that USD will rise against EUR), you go short (sell) the currency pair. If you were right (that is if you went long EUR/USD and EUR went up in value against USD), you would make a profit. If the trade went against you, however, you would make a loss.В You can trade forex using leverage, which allows you to increase your potential profit, but it also increases your potential loss. What is margin or leverage? Since forex is traded on margin, you only have to deposit a percentage of the full amount you wish to trade. Our margins start from 2%, which could be referred to as 50:1 leverage, as the value of the full position would be 50 times the value of the deposit required to open the trade. When trading on margin it's important to remember that your profits or losses are based on the full value of the position, not just the percentage you deposited, so you can lose more than your initial deposit.В FX trading examplesВ View ourВ FX trading examples to see how buying or selling forex pairs as CFDs works, and find out more about trading forex with us. CMC Markets Singapore Pte. Ltd. Reg. No./UEN 200605050E. Contracts for difference (CFD) are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. Es posible perder más de su inversión inicial y es posible que tenga que hacer más pagos. CFDs involve the risk of substantial loss and trading CFDs may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. 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Las partes de esta página se reproducen del trabajo creado y compartido por Google y se utiliza según los términos descritos En la Licencia de Atribución de Creative Commons 3.0. &dupdo; 2016 CMC Markets Get access to exclusive Forex strategies, indicators and EA's. The most popular currency pairs are EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, USD/CHF, EUR/GBP, EUR/JPY. Some currency pairs are volatile and move a lot intraday. Some currency pairs are steady and make slow moves over longer time periods. You will also notice that the spread on major pairs is lower than less popular pairs. For instance: While spread on EUR/USD is between 1 and 3 pips, spread on USD/SGD is about 6 pips. Based on your goals, you should decide which currency pairs are best suited to your trading strategy. It is a known fact that currencies are moved by many… Continue reading Members only! Corredores de Forex Explore Brokers Find out everything about Broker before you deposit money Webiste Explore Síguenos Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by iForexIndicator.com, it's employees, directors or fellow members. Los futuros, las opciones y el comercio de divisas al contado tienen grandes recompensas potenciales, pero también un gran riesgo potencial. Debe ser consciente de los riesgos y estar dispuesto a aceptarlos para invertir en los mercados de futuros y opciones. No negocie con dinero que no puede permitirse perder. 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Cualquier opinión, noticias, investigación, análisis, precios u otra información contenida en este sitio web se proporciona como comentario general del mercado y no constituye asesoramiento de inversión. No asumiremos ninguna responsabilidad por cualquier pérdida o daño, incluyendo, sin limitación, cualquier pérdida de beneficio, que pueda surgir directa o indirectamente del uso o dependencia de dicha información. Recuerde que el desempeño anterior de cualquier sistema o metodología comercial no es necesariamente indicativo de resultados futuros. FOREX CURRENCIES: Questions and Answers for beginners Hello I m new to this where does a newbie start if wanting to get into forex tradnig and also how can i learn to operate the forex platform ? If I decide to only trade the 4 strongest currencies. is this a wise move ? Absolutamente. In fact, the more you focus on a particular trading pair, the more you will learn about this pair, its volatility, behavior around turnign points and breakouts, the speed and potential of sell offs and rallies, the tendency and average duration of time the pair stays in a range, the accuracy of forming and following various pattern formations etc. All that can be learned if you master your currency pair (you may take 2-3 at the time, possibly 4). Trying to trade all possible currency pairs at once often creates a small chaos in your head and on your charts and may impact your trading as well as your wiling to continue learning. Forex for beginners In most of the trading platform, EUR/USD Bid and ask prices are mostly 5 digits after the dot. But in my forex lesson i was taught with 4 digits after the dot to set take profit (TP) stop loss(SL) and at price. This is under fundamental trading with news. But whenever i place a pending order in my computer, it will prompt me invalid TP/SL. Kindly pick an assumed market price using 5 digits after the dot to illustrate this point. Gracias The most common way to display EURUSD chart prices is by using 4 digits after the dot - the way you were taught in the lesson. Nowadays, some trading platforms introduce 5 digits, where the fifth one is simply a fractional pip called "Pipett" 1 pipett = 1/10 of a pip. Since your platform uses 5 digits after the dot, you'll need to type in all 5, the fifth one can be typed as "0": For example, currently EURUSD is traded at 1.3237 On your platforms it'll be equivalent to 1.32370 Why brokers introduce pipettes? The goal is to further reduce spreads. With the extra digit of precision, it is possible to adjust rates to a finer level, which gives greater flexibility in pricing. Forex for beginners In general most trending pairs are: EUR/USD GBP/USD USD/JPY GBP/JPY AUD/USD USD/CHF Speaking about smooth trends, take: Speaking about largest price shifts with lots of pips on the table, take: Forex for beginners Yes, there are currency pairs that move the same direction. They are called correlated pairs. The level of correlation determines the similarity in the currencies' moves. There are pairs that move in the same direction almost mirror-like: EUR/USD and GBP/USD AUD/USD and EUR/USD And pairs that move mirror-like, but in opposite directions: EUR/USD and USD/CHF GBP/USD and USD/JPY By knowing which currencies have the highest chances to reflect each other moves traders can diversify the portfolio, instead of putting all eggs in one basket. Further reading and examples of other currency pairs at: Currency correlation Forex Forex for beginners Is there any chance the GBP will go back to the old value against the Euro (1.5 approximately in November 2007) or is it going to lose even more ground ? Should the GBP recoup ground against the Euron, when will it happen? What is the possible scenario GBP/EURO in the next 6 months and in the next 12 months? In the upcoming week or two (end of August, beginning of Sept. 2008) the pair is expected to attempt few more corrections approx. to 07930 level, from which prognosis is bullish with a target at 0.8090. Overall, the pair is expected to remain within 0.79 - 0.81 area for 2008 year with, so far, the same expectaions for the beginning of 2009. Forex for beginners when do sell chf and when do we buy it? i heard that when the price increase in front of chf that means the usd is going up and chf is going down so in this case we sell chf. está bien When trading USD/CHF pair: USD is the base currency and CHF is a counter currency. The base currency is always equal to 1 unit, in our case 1 USD. The counter currency represents the amount of that currency needed to purchase 1 unit of the base currency (1 USD). So, for example, when USD/CHF is trading at 1.55 it means that it takes 1.55 Swiss francs to buy 1 US dollar. Looking at USD/CHF charts: When the price moves up, it means that USD is getting stronger and CHF is getting weaker. When price moves down - USD is getting weaker and CHF is getting stronger. When we buy USD/CHF pair we sell CHF in order to get USD. On a trading platform you simply use a Buy order to indicate that you want to buy USD/CHF pair, because you believe that the pair is going to trade up and the US dollar is going to get stronger. When you feel that the pair has moved up enough and is about to descend, you Sell USD currency back and Buy CHF. On Forex trading platform is is done by simply creating a Sell order for USD/CHF pair. Forex for beginners By purchasing 1000 USD for CHF and selling it 1 day later, we've got a profit of $10. Risk diversification is done by trading several currency pairs with low correlation in between them, e.g. currencies which tend to move independently more often then reflect/mirror to each other moves. You never put all eggs in one basket, so you never open similar trades for EURUSD and GBPUSD, for example, as they have high correlation coefficient. I'd suggest to review the topic of currency correlation to get a better idea. Submitted by Beginner Trader on Thu, 12/10/2009 - 07:38. I am the dummiest trader maybe..because I want to start forex but I dont know about it at all. What I know is only that this is the best platform to earn money..where can I find the right website that can help me as a dummy here? Gracias. Submitted by Beginner Trader on Fri, 04/09/2010 - 09:28. GBP/JPY considered as one pair and is this pair is traded against GBP/EUR .Can explain the pair concept in Forex trade When looking to get involved in forex trading, there are several basic concepts that you must first understand. The most fundamental aspect of forex trading is that of currency pairs. Every trade involves an exchange between two currencies, with the most popular ones in the forex trading markets currently being: the Euro (EUR), the US dollar (USD), the Australian dollar (AUD), the Japanese yen (JPY), the Swiss franc (CHF), the Canadian dollar (CAD), and the British pound (GBP). The current value of these currencies in relation to each other is what composes the given exchange rates in the global markets. In a forex currency pair, the first one noted is the base currency, which is always depicted as one monetary unit. The secondary one is the counter currency, which is shown in its relative value to the base currency. For example, AUD/USD 1.05 translates to $1.00 of Australian currency buying $1.05 of US currency. As a novice forex trader, this can seem a bit difficult to comprehend at first, but once you research everything you possibly can about forex trading, it becomes much easier. Learning to read the forex trading signs is important from the moment you get involved in this investment practice. You can easily learn to interpret market signals either using specialised software programs designed to analyse and simplify charts for you, or simply follow the news as to which rates are going up (time to sell) and which currency’s rates are going down (time to buy). There are many websites that are specifically aimed at novices looking to study forex trading signals. Given the high volatility of this market, there are certainly times of profitable gains, but there are also possibilities of tremendous losses if you do not proceed carefully. When examining forex trading currency pairs as a novice investor, prioritise risk-minimisation in order to protect yourself from financial devastation. This is achieved through education and not over-extending yourself when it comes to starting new trades in currencies. As a novice, it is usually recommended to stick to one currency until you learn the ropes of the forex trading market. After you feel that you have a solid understanding of how this unpredictable market works, then it ought to be okay to branch out into other currencies as well. This can be a difficult market to get seriously involved in for novices, but forex trading can be a successful venture when you are knowledgeable about what you are doing. Currency pairs are crucial bits of information for any forex trader to comprehend before investing significant amounts of money into forex trading markets, but luckily for novices, they are quite simple to understand. As long as you remember that the base currency always comes first in a single monetary unit, then the rest becomes easier from there. This article was written by Will from Life Insurance Finder. Leave a comment Pairs Forex is significantly different from other markets - in the sense that the currency of a country is traded AGAINST another country's currency. Unlike in a stock market or commodities market - you trade stock or commodity of its own value. Example: Euro is traded against US dollar - This is called a forex currency "pair" - this pair is commonly referred to as "EUR/USD". How the pair works: In the above EUR/USD pair If the European Economy is doing better than the US economy then EURO gains in value AGAINST US dollar if the US economy is doing better then European economy then USD gains value AGAINST Euro. To keep matters simple, all forex brokers and banks refer to Euro USD pair as EUR/USD (not USD/EUR). Trading pairs Now that we know what a currency pair is - let's look at how it is traded. In any given pair: the first currency is called a Base Currency The second currency is called quote currency or counter currency When you place a "buy" order for this currency pair (eur/usd) - you are actually BUYING Euro and SELLING US dollar . on the other hand, if you place a "sell" order for this currency pair (eur/usd) - you are actually SELLING Euro and BUYING US dollar . Instant recap: In a "buy" order you BUY base currency and sell quote currency of any given pair. In a "sell" order you SELL base currency and buy quote currency of any given pair. Reading forex quotes: Let's jump right into it - here's how a EUR/USD pair quote looks like: did you say huh. - good. you are on the right track! Let's decipher: It takes 1.3396 US dollars ( quote currency ) to buy the 1 EURO ( base currency ) Hope you figured out why the second currency is called Quote currency - all forex quotes are given in the quote currency Here are few forex quotes: (a) USD/JPY = 123.53 (jpy=japanese yen) It takes ______ of _________ to buy _________ (b) GBP/USD = 1.9801 (gbp=british pound) It takes ______ of _________ to buy _________ (c) USD/CHF = 1.2409 (chf=swiss franc) It takes ______ of _________ to buy _________ Try to answer them first and then see the answers below. Forex Majors: Four forex currency pairs are called Forex Majors - they are: EUR/USD - Euro / US dollar GBP/USD - British Pound vs US dollar USD/JPY - US dollar vs Japanese yen USD/CHF - US dollars vs Swiss franc These currencies are considered to be stable currencies in the world. Now that we figured out the forex currency pairs and how they work - let's figure how to make money trading them Meaning and Value of a PIP >> Answers: (a) USD/JPY = 123.53 It takes 123.53 japanese Yen to buy 1 US dollar (b)GBP/USD = 1.9801 it takes 1.9801 US dollars to buy 1 british pound (c)USD/CHF = 1.2409 it takes 1.2409 swiss francs to buy 1 US dollar Best Currency Pairs To Trade At London Open In today forex faq, we have a fellow trader from Australia with the following question. One quick question im in brisbane australia, I really feel the currencies to look at for movement and money and time efficiency are the euro/usd, gbp/usd im sumizing all other pairs are far less significant. They always say trade one pair and I feel given the London open and the gpb/usd should be the one I try to make money with, would you agree? Also what would your choice be? And also which time frame chart when it comes time for you to trade do you use? Gracias. I must say that it is right to stick with one to at most 3 currency pairs as there are simply too many pairs to trade with and it will disperse your focus. For me, I only trade the GBPJPY, GBPUSD and EURUSD and being focus will eventually gives you a feel of the currency pairs you are trading. If you have been trading a particular pair for sometime, you will find that you have a sense that the market is going to turn or going to break through a support or resistance . As for London Open, I personally trade the GBPUSD and GBPJPY at that time as it is more volatile at that time of the day which will eventually translate into larger profit if you are right in your trade. As for EURUSD, I like to trade it during the New York Open session as it is more active at that timing. As for the time frame to trade, it all depends on your trading style. If you are a long term trader who leaves your position open for a few days or even weeks, you should use the higher time frame like the 4 hour and daily chart. If you are a day trader like me, you will use time frame like the 15 minutes and hourly chart. My personal suggestion to you is to trade with one pair at a time and slowly get to have a feel of the currency pair you are trading. Once you have a feel of the market you are trading, you can start to try out another currency pair. I understand that some of you are eager for action and may think that one currency pair only can give you limited number of trades per month. However it is only through this specialization that you will have a feel of the market which can gives you an edge over the market. I hope that I have answered your question and if anyone of you has anything to share, do feel free to give your comment below. Comentarios 3 Responses to “Best Currency Pairs To Trade At London Open” You advice to trade only one pair and get to know its behaviour is a GOOD one. It’s also the advice given by a number of mentors. The best pairs to start with: EUR/USD EUR/JPY Dr Julius Ssemakula says: I THINK ONE PAIR IS SO SMALL AND 3 PAIRS ARE OPTIMAL, HOWEVER WHAT IF YOU ARE BOTH A TECHNICAL AND FUNDAMENTAL AND FOR THE TECHNICAL BEAT YOU TRADE 3 PAIRS AND FOR THE FUNDAMENTAL YOU TRADE A PAIR WITH A NEWS AFFECTED CURRENCY, DOES IT WORK 2 Flares Twitter 0 Facebook 0 Google+ 0 LinkedIn 2 Filament.io More Info '> 2 Flares × We hear all the time that a trader should only trade one or two currencies. We have found that a trader can trade multiple pairs and be successful. In fact the success is multiplied with more currency pairs. Most of the time there are a few pairs moving so this give the opportunity to have something to trade most of the time. The key is to trade what is moving on any given day. Here are some of the ways we accomplish trading many pairs at once. We trade with larger time frames…the day, 4h and 1hr By trading the larger time frames you don’t have to worry about the small market ups and downs. You can trade the larger trends where you will find the big pips We use a trend alert letting us know which pairs are trending vs. channeling. Our trend alert shows you which pairs are moving and when all the time frames are lined up and going the same way. We use alters that bring trades to our attention once they are trending. We make a watch list and wait for signals to alert us to what is moving. This makes it possible to spend less time in front of the computer and make more pips in the process. By learning to trade with alerts you can trade any currency. You just need to trade the currency pair that is moving so you will have something to trade most of the time. Watch the video below and get a glimpse of how trading many pairs can be done. The big money is made by both a lot of pips and big lots on multiple pairs. Give it a try by following our easy to follow step-by-step trading path in forex and make more FX pips than you ever thought possible check out http://www.forexstrategysecrets.com and try out our free Jump Start Trading strategy to give you a taste of how to be a mechanical trader. When you sign up for Jump Start you will get one month access to our trading room where you can watch successful traders trade. You will be able to learn from them and see how they make 100’s of FX pips a day and they are having fun doing it. Most Volatile Currency Pair Trading at the Forex generally involves a pair. Now, there are 2 categories - majors and minors. Two different currencies can be put against each other to form a pair. We hope that you are very clear about the Forex market and the way it functions. The currencies of two nations are often clubbed in a pair. The majors in Forex are Euro (EUR), US dollar (USD), British Pound (GBP), Swiss Franc (CHF), Japanese Yen (JPY), Australian dollar (AUD) and Canadian dollar (CAD) .The most prominent pairs are EUR/USD, USD/JPY, USD/CHF and GBP/USD. EUR/USD pair is still the most favorable and most traded pair in the Forex. These pairs normally move upwards in the table. Hence, you stand a chance of earning more if you decide carefully on these. Do brief yourself with the necessary information before entering in currency trading. The pairs considered to be most volatile include EUR/NZD, GBP/JPY, and GBP/AUD. The ones that are least volatile include EUR/CHF, EUR/GBP, and NZD/USD. These pairs belong to the dominant players in the world economy. The two major continents, namely America and Europe, establish the reserve currency of the world and hence they tend to be more volatile. There are factors that determine volatility. Trading between nations is one among the prime factors. Secondly, the average true range which is often shows as pips on the Forex chart. The average true range percent depicts how far a currency has transformed on a daily basis. According to recent discoveries GBP/JPY is the pair with highest volatility, followed by EUR/JPY, AUD/JPY, CAD/JPY, and NZD/JPY. Best Currency Pair For Beginners Forex Currency Pair Timing Calculator Forex Fastest Moving Currency Pair Most Volatile Currency Pair The Most Profitable Currency Pair If you are just starting out as a trader, choosing which Forex currency pair to choose can be a difficult decision. In this article, we will be laying out the key considerations that should be taken into account before making a decision. Buying and selling currencies, just as you would when exchanging money for a holiday, is Forex trading in its simplest terms. That is why the currency pair you decide upon will become one of your most important Forex trading tools. First of all, it is important to understand that currency pairs are referred to as a combination of their constituent trading currencies. To trade the American dollar (USD) with the British Pound (GBP) you would be trading the USD/GBP. Some other popular trading pairs represent the largest economies and are derived from the following: US Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), and Swiss Franc (CHF). Some further key terms include… Majors – These are the seven most frequently traded Forex currency pairs. They include: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CHF, USD/CAD, AUD/USD and NZD/USD. All the majors include the U.S. dollar because it is the most common (central) currency against which other currencies are traded. Cross currency pairs – These are currency pairs which do not include the U.S. dollar. Years ago, a trader wishing to trade Forex currencies outside of the majors would have to first convert to U.S. dollars before then trading on. That conversion can now take place directly, with the most common currency crosses including: EUR/GBP, EUR/JPY and EUR/CHF. These follow their FOREX trading prices from the movement of other currency cross and major pairs. It is a good idea to choose one of these trading pairs if you don’t want to trade the USD. So how do you decide which Forex currency pairs to pick? Go for popular pairs: Choosing the currency pairs that are most commonly traded (one of the majors) is particularly helpful to inexperienced beginners. These pairs are likely to be surrounded by far more current news about their underlying economic and political situations, making it easier to make informed speculations. Be aware of correlations: Currency correlation measures the extent to which one currency pair mimics the movement of other currency pairs. If two pairs tend to move in the same direction, they are positively correlated. If they tend to move in opposite directions, then they have an inverse correlation. Forex traders need to be aware of these correlations, because being ignorant when entering two trades on negatively correlated currency pairs could leave you vulnerable. Research trading range: Every currency pair will have a different expected range of movement over a given period. Understanding what your currency pair’s range is will help you to set realistic loss and profit targets and allow you to choose a pair which moves in a way that you like best. The EUR/GBP, for example, tends to make small moves (pips) and is known as a less volatile pair. The GBP/USD on the other hand, can average up to 200 pips. A pip is the smallest price change that a currency can make and will equate to slightly different real-money amounts for each pair. Trading times: It is a very good idea to choose trading pairs which are based in areas which correspond to local business hours. Forex markets respond to a whole range of business transactions and trading activities and choosing currencies which synchronise can help to increase your chance s of predicting Forex chart movements correctly. For example, trade the EUR pairs between 2am and 1pm EST and Australian pairs between 6pm and 2am EST. Interest Payment: One advantage of trading the Forex market is that traders are paid interest on their overnight trading positions. How much a trader makes in interest predominantly depends on the interest being paid by each country’s central bank. The trading strategy that seeks to take advantage of the difference in the interest rates of currencies is known as the carry trade; Effective traders should try to find pairs that have large differences between the interest rates paid. For example, if the lending rate on the Swiss Franc is 3% and the Japanese Yen is 1%, then taking a long CHF/JPY trade will net 2%pa in interest income. Carry trading can be a riskier strategy and should be considered once more experience is gained. In conclusion…the most important thing about choosing a Forex currency pair is finding a combination that suits your trading strategy. Take the above points into account when making any decision, but also conduct plenty of research into the currencies you are considering. Picking your pair out of hat is likely to result in bad trading decisions and, ultimately, losing money. Focus your energy and resources on one trading pair first, using one of the majors is generally the best idea. Don’t forget to use a demo account as useful preliminary tool which can help you gain confidence and get to know as much information about your pair as possible. This will help you to build your Forex trading ability and should lead you on to taking on further cross currency pairs. Top Currency Pairs For FX Trading There are two factors that you need to take into account when it comes to which are the best currency pairs for forex traders to use. The very first factor is activity and the second is systems. 1. Most Active Currency Pairs When you are beginning forex trading you will often be advised to begin with the currencies that are traded most. One reason behind this is that high liquidity implies that your stops will more regularly be met without slippage. Another reason is the fact that costs tend to be low. More and more people on the market results in a tighter spread, and there’s also strong competition between brokers, keeping fees down. You may be surprised to listen to that the trading floor with many activity isn’t New York, but London. Even though the united states dollar is easily the most heavily traded currency, London beats Ny for the actual volume of trading. So does this mean the British pound and also the US dollar would be the most active pair? You might think so, but the answer is no. The euro has a higher amount of trades than the pound. So EUR/USD is easily the most heavily traded pair, even about the London trading floor. Actually japan yen also beats the pound. Globally the 3 most traded pairs are EUR/USD first, USD/JPY second and GBP/USD third. 2. Currency Pairs And Forex Currency Trading Systems The amount of activity in various currencies has become the most important factor in deciding which pairs would be best to trade if other things are equal, but in certain cases you will have a system that depends upon other criteria. If you prefer automated systems, you can definitely find that the software programs are set to utilize a small amount of pairs and the most active will not necessarily be the best choice. For instance, you might realize that the very best selling forex robot Fapturbo is placed to trade EUR/GBP and EUR/CHF. The more active pair here is EUR/GBP, but many users have found that they get better results with EUR/CHF. In fact, many Fapturbo users are now only trading EUR/CHF with this particular robot. The end result is that if you have a profitable system that’s designed for a certain currency pair. you should stick with that pair. You can’t assume that your system will work as well for other currencies, although you can go on and test it if you wish to know whether it works with a more active pair. However if you’re developing a new system, and certainly if it involves scalping, you can usually get the most liquidity and trading opportunities with the lowest costs by working with probably the most active forex currency pairs. Incoming search terms for the article: Currency Pair Quotes What is a currency pair. In terms of trading currency, foreign or domestic, on the major currency markets such as the Forex. a currency pair is a set of two quotes. One end of the quote will represent the relative value of the currency to be traded. The other part of the currency pair will be the quoted price of the currency for which the first will be traded for. The first price of the currency pair will be referred to as the quote or counter currency. The latter is known as the base currency. In this example of a currency quote below the Euro is the quote currency and the US Dollar is the base currency: The above example is simply saying that for each Euro, its equivalent value in US Dollars will be $1.25. The base currency will always be represented after the forward slash to identify it. In all cases the involving the Euro, the Euro will always be used as the quote currency, meaning it will come first in the quoted currency pair. The following is a list which shows the priority for listing currency pairs based on their country, or in the case of the Euro, region of origination. The 3 letter symbol associated with the currency is also standardized. Both of these are historically established by International Organization for Standardization (ISO): Pound Sterling (GBP) Australian Dollar (AUD) New Zealand Dollar (NZD) United States Dollar (USD) Canadian Dollar (CAD) Swiss Franc (CHF) Japanese Yen (JPY) Currency Pairs In Currency Trading Currency Pairs On the Market If you are new to trading currencies, you may want to familiarize yourself with the more common nicknames which are used to represent the most used currency exchanges. When one is changing the British pound for the US Dollar, it is typically called “cabling”. Currency trades between the Euro and the US Dollar, “Fiber”, “Loonie” for Euro to British Pound, “The Funds” when trading US Dollars for Canadian, the “Aussie” for Australian to US Dollar, “Geppie” for Pounds to Yen, finally the “Kiwi” for New Zealand to US Dollar exchanges. Artículos Relacionados: Deja una respuesta Forex Articles | Written by TradersChoiceFX | Correlation in the Forex Market Statistically speaking, correlation is the measured relationship between two units over a series of time. Correlation is measured on a range of -1 (perfect negative correlation) to 1 (perfect positive correlation). A positive correlation implies that the two units move in similar directions, the higher the correlation the closer and more accurately these moves are. Conversely, a negative correlation represents opposite movements with a smaller (more negative) number representing a stronger relationship between the opposite movements. It is important to understand that in the forex market you are trading currency pairs as a single unit. These pairs consist of two different currencies and are priced based on the value of one currency divided by the other. Technically you are making two trades when you trade any forex pair. You are buying one currency while simultaneously selling the other. For example: with the AUD/USD you are buying the AUD while selling the USD when you go long the pair. So, instead of looking at currency pairs as a single unit like a stock or a commodity, it is more appropriate to look at currency pairs as two separate trades. Viewing forex pairs as two separate trades will help you understand the relationship between other currency pairs, and will help to clarify why there seems to be an outstanding amount of correlation within the forex market. Creating Healthy (Forex) Relationships If you were to compare some of the major pairs in the forex market, you would immediately notice that many have an uncanny resemblance in their pattern. Below is an example of the EUR/JPY vs. EUR/USD: The above two pairs move in such a similar manner and show a high level of correlation. There is a simple reason for this and becomes apparent when you break the trades down. In both the EUR/JPY and EUR/USD you are buying the EUR and selling some other currency in a long trade. If you take another look at what you are actually comparing in mathematical form the reason for the strong correlation becomes quite obvious: Now take the example of the USD/JPY and EUR/USD: In this example you see a highly negative correlation. Similarly to the last example, the driving factor here is the increased appearance of a specific currency. In this case the USD. However the difference in this case is that you have the currency appearing on opposites ends for each trade. Because one pair is buying and one is selling, you have inadvertently caused a negative relationship. To further illustrate this point, let's assume that the only currency that moves is USD, while the two other currencies (JPY and EUR) remain flat. Now you are effectively comparing the relationship of USD to that of the inverted USD, which is rather useless. Here is the comparison in equation form: Understanding Correlation in the Forex Market When comparing pairs in the forex market for correlation, it is usually not wise to have a currency represented more than once. In the comparison of two currency pairs you will have a total of four currencies affecting the relationship. To avoid one currency from being overstated it is vital that all four currencies, regardless of whether they are being bought or sold, only appears once. By doing this you can create unique relationship that will be able to give you a valuable and unique insight in to the relationship of two pairs. Correlation comparison can potentially set you up for new and exciting trading opportunities as well as offer you several unique trading strategies. In order for you to understand and realize these opportunities you must first understand the full breadth of what is being compared. We’re very happy to existing a person with this line every day analytics associated with MasterForex Company. MasterForex experts offer daily evaluations explaining the foreign currency pair’s every day character in a number of period structures, character evaluation depending on a number of techniques, description associated with evaluation as well as indicators character. Which we are publishing with this line. Haga clic aquí para descargar una nueva herramienta de comercio y estrategia GRATIS And much more evaluation for example: Easy buying and selling methods evaluation; make up associated with every week rankings. Explanation as well as remarks in order to the most important financial occasions from the day time. Remarks towards the next-day occasions pointed out within the financial diary. Incorporated every week evaluations. About the 4-hour graph: The actual specialized modification, that has started upon Mon, is actually ongoing. The actual set requires a attempt to return to the prior industry funnel between your outlines 1 as well as two. The actual character from the final times offers created the brand new assistance collection 3 and also the climbing funnel clamped through the outlines four as well as 5. Terminos de busqueda entrantes: most trending forex pairs currency pair trending Trending currency pairs Dollar index trading at 94 (-1.1%). Strength meter (today so far) - Euro +1.5%, Franc +1.4%, Yen +0.45%, GBP +0.52% Strength meter (since last week) - Euro +1.36%, Franc +2.01%, Yen +0.64%, GBP +0.77% Long term - Sell, Medium term - Range/Buy Support, Short term - Buy Long term - 1.048-1.036, Medium term - 1.153-1.157, Short term - 1.106-1.102 Long term - 1.175-1.18, Medium term - 1.155-1.16, Short term - 1.128-1.132 (broken) Economic release today - Euro zone PMI moved up to 54.1 for services while composite recorded 53.9 Retail sales dropped -0.8% m/m in March Euro has gained further as expected after bulls have broken 1.12 and broken short term resistance around 1.132. Further rise is very much likely. Initial target is coming around 1.15-1.16 area. Long term - Range/Sell, Medium term - Sell, Short term - Range/Sell Long term - 1.425-1.417, Medium term - 1.462-1.455, Short term - 1.497- 1.494 Long term - 1.553-1.56, Medium term - 1.553-1.56, Short term - 1.538, Immediate - 1.528-1.532 Economic release today - UK services PMI rose to 59.5 in April. Pound bulls got support in services PMI numbers after price was pushed down towards 1.513 prior to the release. Focus now is on tomorrow's election. Long term - Buy, Medium term - Range/Sell, Short term - Range/Buy support/Sell resistance Long term - 113.7-112.9, Medium term - 115.7-115, Short term - 118.5-118 Long term - 125, Medium term - 122, Short term - 122. Immediate - 120.8 Economic release today - Pair was thrown back from the resistance area around 120.5 as yen bulls made advance amid risk aversion and weak dollar. Yen now might move to test range low. Long term - Buy, Medium term - Sell/Range, Short term - Range/Sell resistance Long term - 0.88, Medium term - 0.917-0.913, Short term - 0.93 (broken) Long term - 1.174, Medium term - 1.025-1.02, Short term - 0.984-0.987, Immediate - 0.944-0.047 Economic release today - Franc is best performer this week. Pair has broken below key short term support and now testing medium term support. Further progress to downwards seem likely. However long term support might keep pair above 0.88-0.89 area. Published: 2015-05-06 15:35:00 UTC+00 10 months, 3 weeks, 1 day, 6 hours, 36 min. hace Forex quotes for Major Currency Pairs. Realtime, continously updated quotes for a wide range of forex currency pairs, complete with charts. Street Forex Automaty – Kontakt – Robot Forex4TH FLOOR, 86-90 PAUL STREET … Pepperstone Metatrader 4 Forex Broker … forex automaty, forex automated trading, forex automated, robot forex trading. 9 Lip 2012 … Kiosk internetowy czy forexowy. 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( e.g. foreign exchange or interest rate hedging), trade finance and bond issuance. All other Bank accounts including UBL and cash pick up from UBL: Category: Bonus Amount: 1: Create / Submit remittance online and transfer funds to a Sydney Forex … Any trade in forex market has to be done through USD. US dollar is the main currency and is the axis of all transactions in the forex market. Any currency pair that … All markets move in patterns … and charting the most commonly traded currency pairs. Featuring numerous historical charts generated by proprietary software and charting system, Charting the Major Forex Pairs provides Forex traders with a graphical … Forex Arbitrage Strategy Revealed Effectively Identifying Profitable Currency Pairs – This Forex Arbitrage system is designed to help traders of all levels of experience identify profitable currency pairs with confidence. It has taught students step by step how to identify when currency pairs are likely to move up or down, and no matter … Retail Forex broker FxPro today announces pending changes to the margin requirements for positions with currency pairs with the South African Rand (ZAR). The company said it will be increasing the margin requirements for all ZAR pairs to 1%. The new … Understanding Foreign Exchange Trading – Forex Trading – About.com – What is foreign exchange trading all about? & # 8230; pairs are predetermined by brokers, who may or may not offer a match for the currency pair that you want to trade. Therefore, all currency pairs involving it should use it as their base, listed first. & # 8230; Forex traders buy EUR/USD pair if they believe that the Euro would increase in … Aug 2, 2013 … Forex Currency Pairs are the integral instruments being traded in Forex. They are also called securities. In Forex unlike Stocks and … Not all global markets actively trade all forex pairs though. & # 8230; The Yen is an actively traded currency, and so is the USD, so this pair typically sees relatively stable … Nbp Forex Rate Sheet … Ocbc forex rates Is currency trading profitable Forex trade machine Learn forex ebook Find restaurant job Ig forex wiki G7 forex science Nbp forex rates Selling … – report – Spółdzielcza Grupa BankowaMay 28, 2015 … Off-balance sheet items. 74 …. gement of liquidity, interest rate, foreign exchange …. lower all the NBP interest rates, Learn about using currency pairs to trade the forex market. Get a free demo account and start trading today. It is useful to know that some currencies tend to … correlation chart of two pairs over the selected period. http://www.forexpros.com/forex-tools/correlation-calculato Compares selected pair against 29 other pairs all at once on one of 5 selected time … Not all markets actively trade all forex pairs though. & # 8230; If trading the GBP/USD, the times that are likely to be most active for the pair, on average, will be when London and New York are open, … Currencies – Foreign Exchange or Forex. indicat… What is forex hedging? & # 8230; Multiple Currency Pairs … This means if the Euro becomes a strong currency against all other currencies, there could be a fluctuation … Traders who are looking for a more targeted way to trade the dollar will trade “currency pairs … join the forex trading game with instruments (i.e. indexes and ETFs) that are more familiar and readily accessible. Article printed from InvestorPlace … Mensaje de navegación Live Forex Charts of Major Currency Pairs Below is a live forex chart of the major currency pairs. To change the currency pair go to the menu bar on the top of the graph and click on instrument. You can change the type of graph from candlestick to bar chart etc. If you want a particular major currency pair we have a number of individual major currency pair charts also. The Free Charts are Powered by FXEmpire.com – Your Leading Financial Portal Corredores recomendados Categorías Featured Regulated Forex Broker FX RATES Risk Disclosure: Trading capital markets and forex on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to invest in capital markets and trade forex you should carefully consider your investment objectives, level of experience, and risk appetite. Existe la posibilidad de que usted podría sostener una pérdida de parte o la totalidad de su inversión inicial y por lo tanto no debe invertir dinero que no puede permitirse perder. Use of this site is governed by these terms and disclaimer & privacy policy Forex Megadroid Review Reveals 95.82% Accuracy In EVERY SINGLE Market Condition! Forex Megadroid Settings Tested By Real Users Online If you are into automated Forex trading you probably know that most Forex Robots in the market rely on seeing what happened in the past to make trading decisions in the future! If you are into Forex robots you probably know why you are reading a Forex MegaDroid review, because it's currently considered to be the most efficient, accurate Forex robot you can possibly get. It's just different, read on the review to find out why: New Artificial Intelligence advancements made it possible for MegaDroid robot to see into the near future with 95.82% accuracy and trade profitably with CONSISTENCY. Forex MegaDroid is the first robot in the market with RCTPA Trading Technology . new artificial intelligence makes it the first Forex robot able to trade profitably in any market conditions. 1. It is a robot so you don't have to watch the trading all day long. You can have it setup and walk away. 100% Automated Trading Robot. 2. Its not expensive just $67 so it won't be out of reach of traders. (Honestly if you can't afford $67 you don't have a big enough account to trade currency anyway!) 3. They have a 5 to 10 minute setup pledge. They say it only takes 5 minutes to download and install the MegaDroid Forex robot. It was quite easy if you like to read stuff etc. You might take a little longer or if you are new to meta trader 4 brokers may take you a little longer but too long at all. It is quite easy to setup. Personally, I took about 10 minutes. 4. Only trades the EUR/USD. For some people that is probably a drawback. I kind of like it. The reason its a very stable and well traded pair. So the spreads are very low no matter what broker you use. Forex Megadroid settings can trade with any MetaTrader 4 account. 5. Megadroid Forex has a 60 day money back guarantee. If you cannot make head or tail out of it, then just ask for a refund! Honestly, the RCTPA technology is so powerful that it is almost impossible NOT to be able to trade professionally Forex Megadroid "RCTPA" technology (patented In the US) can offer now a different unique and new approach to Forex trading, forecasting future trades instead of the usual method of analyzing old data and "going by gut feeling" profitable trades, is that what you are after? This Forex robot is the revolutionary RCTPA technology in Forex MegaDroid review, no other Forex robots in the market offers such benefit. Comparing MegaDroid Vs. FAP Turbo Vs IVYBot Forex Megadroid is a technologically superior Forex trading robot which uses its patented RCTPA technology to anticipate price movement with extreme accuracy and great precision. Featured by top Forex Trading houses, as seen on CNN, CNBC, Forex Online, Forex Today and Money Traders One of the first best selling forex robot to hit the market, and has since changed the auto Forex trading world. FAP turbo is an advanced piece of software that utilizes cross comparison between currencies and picks the best currency to trade. FAP turbo is constantly being updated to maintain it stake in the multi-currency trading arena. IVYBot, the newest Forex robot system to join the family of automatic trading software. Ok, one thing you MUST know about IVYBot is that its nothing different from FAP Turbo as its from the same developers, and uses the same technology. No patents as of yet, and no track records thus far. Basically the system is everything like FAP Turbo, in a different, packaging Forex Megadroid Review. Resumen So with so many forex trading robots being released monthly, how do you know which forex robot is suitable for you? Ok, the first thing you have to do is to KNOW for a fact, which ones are the top 3 forex robots at the moment. They are: Forex Megadroid, FAP Turbo and IVYbot Forex. All these 3 robots are robust with hundreds of hours of practical trading behind them, not to mention that they are all created by professional forex brokers for professional users. But, which one would fit your needs now? Megadroid Forex Vs FAP Turbo MegaDroid Forex came out a bit later than FAP turbo, it has not been commercialized that extensively yet, but with its new RCTPA technology Patent, Forex MegaDroid Trading robot is by far the superior Forex trading robot in the EURO/USD pair. Scores of Professional Forex Traders has switched over to Forex Megadroid as the patented RCTPA technology offers stronger prediction accuracy for this major currency pair. Whether you are a beginner or a professional, or a seasoned PRO, Forex Megadroid settings will be able to suit your needs as it is fully automated, and takes a very short time to master. The core component is its Patented RCTPA Technology, which is the ONLY one of its kind in the market now. Forex Megadroid settings only trades the EURO/USD currency pair, but with extreme accuracy. With its RCTPA technology, megadroid forex has been successfully trading with close to 99% winning trades. However, since it trades only 1 currency pair, the trades are few and far in between. It is common that Forex Megadroid Settings trades only 1-2 times weekly (using the settings below). However, you can be well assured that it trades ONLY highly confirmed winning trades, such as trades where prices are breached the lower most support lines or the upper most resistance. Forex Megadroid is also an excellent pattern recognition program and has over 200+ pattern recognition in its database and can process all its variables instantly, 24/7. FAP turbo trades all the currency pairs, so if its action you want to see, then FAP turbo is the way to go. FAP turbo is catered more to the seasoned forex trader who already has basic understanding and some trade experience and are those who are looking to trade other currency pairs but do not have the time to do so. Since FAP turbo trades multiple currencies, it is better at cross comparing currency pairs and determining the best currency pair to trade at a certain point of time. With that said, FAP turbo is the more 'hardworking' robot, which can trades a few trades on a daily basis. However, if you are a beginner with totally no experience, it is best to start with Megadroid Forex, and get a hang of how the robot trades and get over the learning curve. Once you are making money consistently, then you would perhaps want to go for the multiple currency trading via Fap turbo. Forex Megadroid Settings: Megadroid Settings are best at 10% Risk level, and Medium Aggressiveness. The Forex program itself is a no brainer, and true to its promise, it really does take barely 10 mins to set up. Forex Megadroid comes with default (very good) settings by the developer and its best to be followed. The extensive manual Comes with REASONS why the settings are set this way, so for the more techie guys, this manual will surely fill your needs. There is nothing secret about the trade settings, its just 2 settings really, Risk Level and Aggressiveness. By default, it is set at 10%-15% risk, Medium Aggressiveness. By using the developer default setting, you can be sure that you are using the absolute best settings and you will get the high winning trades. You CAN also set the program to run at 90% risk level, but that totally defeats the purpose of MAKING REAL MONEY! FAP turbo has a lot more settings to play around with since it trades multiple currency pairs and not all currencies act the same way. So, if you have some trading experience, then you should get the FAP turbo and transfer your knowledge into its settings. However, if you are a beginner, then its best to start with Forex Megadroid, which takes you step by step and assures you in making you the 99% wins. Learn to trade ONE currency before moving into other currency pairs. Forex Megadroid settings has been featured on various fronts, including: CNN Money, CNBC Forex, Money Networks, Forex Today, Bloomberg and scores of other Financial and Forex Magazines and Programs Worldwide! REMEMBER you must DEMO-trade the robot with virtual money before you decide to go live trading with your hard earned money. Its always best to let the MegaDroid Forex run for a couple of weeks - months to see if you feel comfortable with the way it is trading. Its patented RCTPA technology is superb and only works if you are patient enough to let it do its job properly and consistently! Forex Megadroid Review. New Traders * Ideal for new Forex traders, you can have it running and set up the Forex Megadroid settings within merely 10 minutes, literally. Just follow the installation steps and you're good to go right away! Be sure to read watch all the videos about forex trading by the Forex Megadroid Review experts too. Remember, currency exchange trading takes commitment and some amount of effort, so if you have a strong desire to make money via currency trading, then spending a one time fee of $67 on a patented program should not be holding you back. And if it is, then please do not get into Forex trading, cos if you don't have the funds to get the program, you definitely do not have the funds to start trading live! Our Forex Meagdoid review's conclusion: only start this MegaDroid Forex program when you are well and ready and let nothing stop you from making 100-200 pips weekly, consistently! LIMITED Special Bonuses and Discounts Only From HERE! Details Created on Friday, 09 April 2010 19:33 Written by Ivan Yurukov Currency forecasts are based on the major currency pairs. It should be taken into consideration that they are like connected vessels. The most popular currency pair is EUR / USD. It is the most discussed, most predicted of the greatest interest. Dollar and Euro are the most popular currencies in circulation in the most global markets. Both currencies are in combination with many other currency pairs. The movement of these currency pairs to some extent reflects the basic currency pair EUR / USD. For example, currency pair Japanese yen JPY U.S.dollar USD are of great importance. At the exchange rate USD / JPY if the price increases, ie the dollar is getting more expensive the value of currency pair EUR / USD because the dollar rises on other markets and consequently its price is getting up more or less on all markets. When analyzing currencies we have to be reckoned with their presentation with most currency pairs involved. Currency forecasts made for a particular currency or currency pair should always be bound to comply with other related currency pairs. Thus, the forecasts are more precise and they can be relied on to a greater extent. In the Internet space a lot of be interesting currency forecasts can be found. Currency forecasts are made for the major currency pairs, where one player cannot impact the market. These are the EUR / USD, GBP / USD, USD / JPY. A lot of other forecasts of other currency pairs are made but they are not of great public interest. Currency forecasts made in ForexTrading-ea.com are for the currency pair EUR / USD. Forex Trading Daily Forecast EUR/USD Soon will be activated Latest Articles Fogonadura Copyright y copia; FxTradings.net - All Rights Reserved. Selecting Trending Currency pair for Forex Trading a/idXedeGIYloyTs2KJInHYg-esEw/0/di" /> Majority of the forex traders use technical analysis approach to trade, most of these technical traders want the currency pair to follow the trend, may be up or down. When I say about forex trading there are many currency pairs available for trading. Suppose the trader want the trending currency pair, here is how to find which currencies are trending. For doing so there is a simple trick, it is if major currency pairs like EURUSD, GBPUSD. USDJPY, AUDUSD, USDCAD, USDCHF and NZDUSD are trending then stick to it, if major pairs are range bound then it is always that cross currency pairs are trending strongly, like GBPJPY, EURJPY, EURCHF. EURGBP, AUDJPY, EURAUD, etc. This way you will always find the currency pairs that are trending, no matter what conditions the markets are in. For example: If GBPUSD is showing range bound moves. then I will check GBPJPY, which must be trending and it will be more feasible to take trade on it. Just see the charts of GBPUSD and GBPJPY below, you will get the difference. You Should Read This: Forex: GBP/JPY Trading Analysis for 4 July 2011: Buy GBPJPY above 129.55 GBPJPY is one of the most volatile currency pair with daily movement is about 160 pips daily. Intraday trading analysis (tips) on GBP/JPY for 4 July 2011, we recommend to trade long (buy) GBPJPY pair… Forex: GBP/JPY Trading Analysis for 1 June 2011: Buy GBPJPY above 133.35 Intraday trading analysis (tips) on GBP/JPY for 1 June 2011, we recommend to trade long (buy) GBPJPY pair above 133.35 for target of 133.85 and 134.45 placing the stop loss below 133.05. Reason for trading… Forex: GBP/USD Trading Analysis for 1 June 2011: buy GBPUSD above 1.6395 Intraday trading analysis (tips) for GBP/USD 1 June 2011, we recommend, Enter long in GBPUSD above 1.6395 for target of 1.6465 and 1.6495 also place protective stop loss below 1.6365. Reason to trade GBPUSD short:… Forex: GBP/USD Trading Analysis for 4 July 2011: buy GBPUSD above 1.6055 GBP is highly supported by the BoE (Bank of England), due to its continuous buying GBP assets it keeps the GBP moving higher. Intraday trading analysis (tips) for GBP/USD 4 July 2011, we recommend, Enter… ff/ournifty?d=yIl2AUoC8zA" /> ff/ournifty?i=8vdLC6RpiDg:Tsg244P0Snw:-BTjWOF_DHI" /> ff/ournifty?d=dnMXMwOfBR0" /> ff/ournifty?i=8vdLC6RpiDg:Tsg244P0Snw:F7zBnMyn0Lo" /> ff/ournifty?d=YwkR-u9nhCs" /> ff/ournifty?d=7Q72WNTAKBA" /> ff/ournifty?i=8vdLC6RpiDg:Tsg244P0Snw:V_sGLiPBpWU" /> ff/ournifty?d=qj6IDK7rITs" /> EURJPY Forex Real Time Currency Chart Carry trade is a popular and lucrative strategy, and the EURJPY is one of the more popular pairs for the style. In this page we are presenting a live EURJPY chart, followed by a discussion of the two currencies with respect to history and economic data, and conclude with a brief examination of various ways to trade the pair. Forex Chart powered by CMS Forex Copy To Clipboard. Please Note: Past performance is not indicative of future results. The Euro The Euro is the currency of the Eurozone, comprising of the sixteen EU-member nations that have adopted it after meeting the convergence criteria. The GDP of the EU is about $12 trillion, the largest in the world in purchase power parity terms. The Japanese Yen If the world of the carry trade turnscause is the Japanese Yen. Due to the near zero interest rates of the Bank of Japan maintained for more than a decade in order to propel the country out of its economic coma, speculators everywhere have found cheap and easy funding in the Japanese currency for whatever they may have in mind. Japan has a GDP of $4,35 trillion and a per capita income of $34.000 as of 2008. It runs a $100 billion yearly trade surplus with the rest of the world, and is the fourth largest exporter, after Germany, China, and the US. But while the nation has dynamic external trade relationships, the domestic sector has been exceptionally weak for many years. Partly due to the unbalanced pricing policies of Japanese companies, partly because of demographics, and partly because of cultural reasons, Japan has struggled to generate a significant amount of growth in domestic demand over the past two decades. Trading the EURJPY pair The EURJPY pair is similar to other carry pairs. It is less volatile than AUDJPY, but more so than the EURUSD. The main driver of trends in EURJPY, is investor sentiment. A combined analysis of stock, commodity, and bond markets is usually enough to determine the future direction of this volatile pair, since the vast amounts borrowed at cheap cost from Japan tend to be recycled to all kinds of secondary assets in European markets. The major factors influencing risk sentiment in this pair, beyond general factors are sales of Japanese government bonds (JGBs), and interest rate policies of the ECB. Although rumors about Japan raising rates can cause temporary fluctuations, the false nature of the claims often prevent them from having any long term meaning. The EURJPY pair is highly volatile, and is suitable to scalping strategies. Depending on stock market trends, it is also possible to carry trade this pair on a long-term basis, a fact that leads to interesting and complex strategies. As with most currency pairs, one has the option of trading the pair through the futures, options, and ETF markets. If youd like to learn more about trading currencies, or to examine your choices among a fine selection of some of the top brokers in the forex trading business, we proudly invite you to take a look at our excellent broker review page. Forex Blog > Forex Trading > Review of Forex Trendy – Scan All Currency Pairs To Find The Best Trend Which Forex pair and time frame is best to trade? You may ask this question every trading day. Nowadays, computing power comes into play. Forex Trendy is a software solution to scan all currency pairs and all time frames to find the best trend. Over the last couple of years, due to rapid changes in the price of gold and petroleum, the values of currencies have also been changing very rapidly. This has resulted in the Forex market becoming quite unpredictable . In the process, people have been losing a lot of money. Hence, people like us who would like to make some money through Forex trade, and have not been able to do so lately, need the help of an expert Forex system. This is why, the Forex trend scanner system called Forex Trendy will be of great help to people. It will help you in saving yourself from incurring any loss in Forex trade. What can Forex Trendy do for you? Forex Trendy offers you with a wide range of data, which is presented in the form of graphs and charts. The data is collected by scanning the Forex market and it shows the latest trends in currency trading. It will help you in determining the currency pairs that can provide you with the maximum amount of benefits. This online software based solution has been designed to help people avoid the market periods of uncertainty . It will also provide you with access to live charts that will inform you about trending time frames and currency pairs. You can utilize the information for investing on the right currency pair. In my experience, I have found that the software is easy to use . and has been designed to make the trade easy and profitable for all kinds of people. The Forex scanning online based software has been programmed with thousands of algorithms and codes which help it in easily scanning the market, and analyzing the data collected. The data is also presented in such a manner that it becomes easier for everyone to comprehend it. You will not have to break your head, in order to under the results displayed by this software. Even a beginner in the world of Forex trade should not have any problem in understanding these reports. ¿Como funciona? Forex Trendy offers you with a quarterly subscription through which, you can get access to their members’ area. Once you login with your email ID and password, you will have access to the charts, graphs and other useful features. As soon as you login, the first three charts, showing the best trending currency pairs and time frames will be loaded. The trend drawdown will be highlighted in the chart with the help of a blue line, which will help you in determining the best currency pair. The first chart provides you with information about the best currency pair to trade on. Screenshots My changing the settings in the members’ area, I was able to view 20 charts at a time. These charts provided the same information about the best trending currency pairs and time frames. Even the currency pairs displayed on the rest of the charts are decent options for trade. The settings also allow you to select the time frames you want to view. You also get an option to activate an audio alert, which informs you whenever a drawdown falls below 15 %. You can also get email alerts for the settings that you choose on the members’ page of this system. Pros & Contras The various benefits of Forex Trendy are: You do not have to download any software for using this Forex trading system Provides you with live charts that contain information about the trending currencies Charts also include information about completed patterns and changing patterns Subscription also includes access to a 30 page ebook on market patterns and trends The software scans 34 Forex markets for obtaining the data about trending currencies Personally, I haven’t noticed any disadvantages of this system. Apart from the fact that I have not incurred any losses, I have also not spend a lot of money in obtaining the subscription are the charges are quite low. Once you have taken the subscription, if you feel that you are unsure of how to navigate through the site, you can view the free video tutorial available on the site, which will teach you how to use it to your advantage. Visit Forex Trendy Official Site Here: Preview Forex Trendy site to Review: Новости Форекс Онлайн Каждый, кто торгует на рынке Форекс, знает, что стоимость той или иной валюты зависит от множества факторов. Так, например, цена валюты зависит от макроэкономического положения страны, которой принадлежит эта денежная единица. Поэтому, чтобы трейдинг приносил прибыль, нужно постоянно просматривать экономические новости, а также уметь быстро разбираться в отчетах регуляторов. Для вашего удобства мы предлагаем вам специальный раздел «Форекс-новости», в котором представлена непрерывная, регулярно обновляемая лента свежих новостей. Самые интересные новости помечаются как «Новость дня». Новости экономики и финансов . размещаемые на нашем сайте, мы получаем от ведущих мировых аналитических и информационных агентств. Новости рынка Форекс — это незаменимый инструмент, который необходим в прогнозе движения цены. В частности, если опубликованные данные противоречат рыночному тренду, то влияние новости на динамику рынка ограничится несколькими часами. Если же наоборот — данные подтвердят движение тренда — то он будет только увеличиваться с возможным откатом в будущем. Ниже представлены последние Форекс-новости, оказывающие непосредственное влияние на котировки валют, — новости экономики, финансов, политики и валютных рынков. Следите за изменениями в мире Форекс, и вы всегда будете в курсе самых важных событий, что позволит вам своевременно принимать решения при совершении торговых операций. Российский индекс ММВБ закрылся на отметке 1 865,86 пункта Российский индекс ММВБ закрылся с понижением на 0,04% на отметке 1 865,86 пункта. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 13:08:00 Темп роста ВВП США за IV квартал был пересмотрен в сторону повышения Согласно опубликованным сегодня правительственным данным, экономическая активность в. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 12:34:00 Доллар США незначительно вырос после данных о ВВП страны Департамент торговли США опубликовал третью оценку ВВП страны за 4 квартал в эту. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 12:26:00 Доллар США не изменился, ожидая данные по ВВП в США В пятницу в 8:30 по восточному времени в США должны были выйти данные за четвертый. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 11:30:00 Объем потребительских расходов США увеличился в IV квартале до +2,4% По уточненным данным объем потребительских расходов США увеличился в IV квартале до. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 11:30:00 объем розничных продаж США повысился в IV квартале до +1,6% По уточненным данным объем розничных продаж США повысился в IV квартале до +1,6% против. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 11:30:00 Объем корпоративной прибыли США понизился в IV квартале до -8,4% По предварительным данным объем корпоративной прибыли США понизился в IV квартале до. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 11:30:00 В США уровень ВВП в четвертом квартале поднялся на 1,4% Согласно окончательным данным, в США уровень ВВП в четвертом квартале поднялся на 1,4%. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 11:01:00 Объем экспорта нефти Вьетнама сократился в I квартале на 19,8% г/г По официальным данным объем экспорта нефти Вьетнама сократился в I квартале на 19,8%. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 11:01:00 Индекс промышленного производства Вьетнама повысился в марте до 6,2% г/г & Raquo; 2016-03-25 11:01:00 Профицит торгового баланса Вьетнама составил в марте $100 млн По официальной оценке профицит торгового баланса Вьетнама составил в марте $100 млн. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 09:39:00 Индекс потребительского доверия во Франции упал до 7-месячного минимума Потребительское доверие во Франции продолжило ухудшаться в марте до 7-месячного. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 09:15:00 Экономический рост в Нидерландах улучшился в IV квартале Экономический рост в Нидерландах улучшился в соответствии с предварительной оценкой в. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 08:23:00 ВВП Франции в 4 квартале вырос Рост экономики Франции в 4 квартале прошлого года совпал с прогнозом, как сообщает. В новому вікні Швидкий перегляд & Raquo; 2016-03-25 07:55:00 Во Франции в 4 квартале ВВП вырос на 0,3% к/к по последней оценке & Raquo; 2016-03-25 07:55:00 Proact Traders: короткие позиции NZD/USD, вход 0,6768, стоп-лосс 0,6790, целевые уровни 0,6713/0,6670/0,6616 & Raquo; 2016-03-25 07:55:00 Ace Trader: короткие позиции по GBP/USD, точка входа 1,4113, стоп-лосс 1,4200, целевой уровень 1,4053 & Raquo; 2016-03-25 07:54:00 Рекомендуем открывать позиции на продажу USD/JPY на отметке 113,86 (стоп-лосс 116,16) & Raquo; 2016-03-25 07:53:00 Pattern Trapper рекомендует короткие позиции по EUR/USD ниже уровня 1,1220 & Raquo; 2016-03-25 07:16:00 Индекс экономической уверенности в Турции повысился в марте до 78,27 Индекс экономической уверенности в Турции повысился в марте до 78,27 против 71,46. В новому вікні Швидкий перегляд Forex forum India - Introduction. El mercado internacional de divisas proporciona oportunidades para obtener beneficios de alto rendimiento y alto riesgo de las fluctuaciones de la tasa de cambio. El éxito de un comerciante depende de muchos factores; Una de ellas es una plataforma de negociación que el corredor ofrece para operar en el mercado. Hoy en día la mayoría de las empresas de corretaje de divisas y sus clientes prefieren MetaTrader 4 & # 1080; MetaTrader 5 terminales. Si usted va para plataformas MetaTrader, así, asegúrese de & # 8722; Mt5.com forex foro ha sido diseñado para usted. Foro Forex India & # 9472; Discusiones comerciales. En nuestro foro encontrará pronósticos forex relevantes y tendrá la oportunidad de unirse a las discusiones celebradas por expertos del mercado de divisas, los comerciantes profesionales y los que son nuevos en Forex. Estas discusiones aportarán respuestas a todas sus preguntas. Por otra parte, usted será capaz de expresar su opinión, obtener información útil, pedir ayuda o, por el contrario, dar a alguien que ayuda. Todo el mundo dispuesto a aprender algo nuevo y compartir el conocimiento adquirido es bienvenido! Foro Forex India & # 8722; Socializar con los corredores y los comerciantes (sobre los corredores). El foro contiene una calificación de las empresas que prestan servicios de corretaje basados ​​en las opiniones de los comerciantes. También puede compartir las impresiones de un corredor de forex cierto dejó en usted, proporcionar su evaluación de la calidad de sus servicios y también decir acerca de su experiencia positiva o negativa de trabajar con una empresa de corretaje. Sus comentarios ayudarán a otros comerciantes a evitar errores y elegir un agente fiable con quien cooperar. Random socializing on Forex forum India Our forum is a good way to have some rest from work and communicate with friends on miscellaneous topics. Este es un reino de anécdotas, bromas, caricaturas, concursos, discusiones de noticias deportivas, historias de la vida real y fuera de tema desencadenado. Sin embargo, dado que el comercio es un estilo de vida más que una profesión, los temas relacionados con el comercio podrían ser discutidos también. Bonos para la socialización en Forex foro de India Este forex foro ha sido creado por los comerciantes para los comerciantes y no está destinado a hacer ganancias. Sin embargo, mt5.com permite a los autores de puestos para ganar bonos de divisas que pueden ser empleados en el comercio en una cuenta de uno de los patrocinadores del foro. Estos regalos de dinero son símbolos de gratitud para todos los comerciantes de forex profesionales por el tiempo que pasan en nuestro foro. Todas las horas son GMT. The time now is 02:11 AM . Desarrollado por vBulletin Version 4.0.8 Copyright © 2016 vBulletin Solutions, Inc. Todos los derechos reservados. The Most Profitable Currency Pair Trading in Foreign Exchange typically involves a currency pair. Usually, there are 2 different categories of pairs -- majors and minors. Currencies of two different nations are put against each other to form a currency pair. We assume that you are already clear about the concept of Forex market and the ways in which it operates. Understanding the involvement of the major active currencies involved is most important. Once you have chosen a particular pair, it then forms the base for trading purposes. It is almost impossible to trade and exchange with one currency. There is a choice of currency pairs. You are required to be wise enough o understand which currency has more demand and which has more supply. Examples of currency pairs include EUR/USD, USD/JPY, USD/CHF and GBP/USD. These also fall under the category of majors in Forex. Beginners are advised to consider these pairs initially if they are in search for immediate profit. Slowly once you understand them you can further add additional pairs to your kitty. Currency pairs that show smaller spreads would yield more income as compared to larger spreads. Always opt for the most favorable currencies since the costs would be less initially. GBP/JPY is considered to be the fastest moving as well as profitable currency pair. The top most pairs include EUR/USD, USD/JPY and GBP/USD respectively. The other aspect for you to consider is with respect to the trend of currency pairs. Traders need to completely trust the charts and must decide on inner instincts rather than relying on someone else. Forex chart fluctuates every moment, and it is up to you to decide whether you would prefer to eye the most favorable pair or not. Best Currency Pair For Beginners Forex Currency Pair Timing Calculator Forex Fastest Moving Currency Pair Most Volatile Currency Pair The Most Profitable Currency Pair Indranil Sengupta Trading Contract In Forex And Trading Currency Pair Directly – A Comparison The World Currency Options traded at the NASDAQ exchange are an alternate mechanism for trading contract in FOREX currency pairs. This article looks at some of the broad pros and cons of trading these contract options as opposed to trading the currency pairs directly in the FOREX market. Many people have asked us what is a better trade: Trading Contract in FOREX pairs or Trading Currency pair directly in the FOREX market. The answer is not really a straightforward one – it is a little more complicated (as with all things, right?). But it is not too complicated either and very much depends on what a trader is looking to do. First of all, we think it is important to introduce the concept of Trading Contract in FOREX pairs. The Philadelphia exchange (which has now merged with the NASDAQ) allows trading contract options in 10 FOREX pairs. These are all US Dollar settled contracts and can now be traded through most brokerages. This is yet another way to trade the underlying currencies and provides an option to the currency trader. Now that we have introduced the concept of trading contract in FOREX pairs, let us look at some of the advantages and disadvantages of using this trading method. The first disadvantage for true FOREX traders is that there are only 10 FOREX pairs on which one can trade options. And all of these are against the US Dollar (USD). The 10 currency pairs are: XDE – Euro against the USD XDS – Swiss Franc against the USD XDA – Australian Dollar against the USD XDC – Canadian Dollar against the USD XDN – Japanese Yen against the USD XDB – British Pound against the USD XEH – Swedish Krona against the USD XEV – South African Rand against the USD XDM – Mexican Peso against the USD XDZ – New Zealand Dollar against the USD So, if a trader wants to trade other currencies or cross-currencies (such as British Pound against the Euro) they cannot trade the contract options. Also, as one may expect, the volumes are much lower than what one may find in the direct FOREX markets. Of course, as more and more traders get familiar with these instruments, the volume will keep going up. But it will probably still not reach the levels of the FOREX market. Another disadvantage in comparison to the FOREX market is that the trading is restricted to the NASDAQ trading timings. The FOREX market is a 24-hour market. The disadvantage is that there may be huge moves in the currencies during the night, which a trader cannot trade. The trader in the contract option has to wait for the stock market to open. So, we are listing so many disadvantages. Are there any advantages at all? Sí. The biggest advantage is risk management. There is some level of insulation from the potential gyrations of the FOREX market as the movements of the contract option are more manageable. Also, the risk is limited to the premium paid for the contract option. The other big advantage is that trading contracts allows one to trade other strategies such as straddles, strangles, etc. that allow for better hedging. The FOREX market (at least the US brokerages) does not allow a trader to go long and short the same currency pair at the same time. With options a trader can execute such long-short strategies. Why would any trader want to do that? Trust us . there are several benefits to such trades. But that will be the topic for another article. Fuente: Free Articles de ArticlesFactory.com ABOUT THE AUTHOR How to Spread Bet Currencies and Forex Pairs Q. How do you use spread betting to trade currencies? A: The simple thing to remember when trading a currency pair is that if you expect a first named currency to appreciate in value against a second named currency pair you would 'buy' a spread bet on that pair. If you expected a first named currency to depreciate in value against a second named currency pair you would 'sell' a spread bet on that pair. For example, if you expect the pound to gain against the dollar you would 'buy' GBP/USD, which may mean you placing a £5 buy on a spread betting provider's quote of 1.5650-1.5653 (so you would buy at 1.5653). If you expect the pound to fall against the dollar you would 'sell' GBP/USD at 1.5650 in the above example. Remember also that the spread is based on movements per 0.0001 of the currency (with the exception of USD/JPY which is traded per 0.01 currency movement). Given that currency movements can be very volatile this can result in potentially huge swings meaning large profits, or alternatively large losses. So ensure you have stops in place to limit your downside to any trade. Let's assume that you are spread betting with Spreadex. With Spreadex you will need 100 x your stake size as available trading balance to cover the potential volatility. So, based on the £5 stake size example above, you would need £515 available trading balance to place the trade (100 x your £5 stake plus £15 to cover the spread (3 pips x £5)). There are two forms of currency spread betting: The first is the value of a currency on a future date, and the second is a daily rate spread also known as a 'on the spot' rate which is intended for very short-term trading. The spread price for a daily rate currency is much lower that a future date price i.e. spot prices are tighter (giving you greater value in your spread bet), however if you wanted to keep a spot currency trade open for longer than a day you would incur a rollover charge. For instance, at the time of writing, the financial bookmaker will quote a 24 point spread as opposed to a 40 point spread for future rates. You would also need to make sure you had your trade preferences set for your spot currency to roll. Future currency spreads are wider, but you would not incur a rollover charge if you wanted to keep the trade open for a long period of time. If you imminently expect a big move in the markets, then a daily rate is best. But I must stress that it has to be a big move. Even a move of 24 points in a day is fairly uncommon but a 40 points plus movement over say a couple of months is much more likely. Many currency traders use technical indicators to gauge whether a given currency is likely to rise or fall against another currency. You can use charting software to draw support and resistance lines on different pairings to work out your trading strategy. Among the different signals traders look out for are Continuation Patterns and Reversal Patterns. Continuation Patterns give indications of whether a trend has the capacity to continue its current levels of momentum. Typical examples of Continuation Patterns involve the formation of Pennants, Flags, Wedges and Triangles. Reversal Patterns give indications on the likelihood of a trend reversing. Typically this will involve the formation of Double Tops and Double Bottoms, Triple Tops and Triple Bottoms and Head and Shoulders Tops and Head and Shoulders Bottoms. Currency trading can also be used as a hedging tool, for example, for a forthcoming holiday. For example, you had booked a family holiday to the States for later in the year and expected the pound to lose ground against the dollar. Rather than changing money now and tying up capital, you could instead place a 'sell' spread bet on GBP/USD. Therefore any fall in value of the pound against the dollar in the intervening time period you would offest by the profit gained from your 'sell' spread bet. More information on using spread betting to trade currencies is available spread betting currencies section Q. Yes, but isn't spread betting considering gambling while forex is trading? A: Yes, but financial spread betting was born out of existing tradeable instruments in the stock market. In a simplistic way. think about the inter-bank market. Some saw an opportunity to create leverage and create spot forex brokerages opening it up to the retail market, to people who would never have been able to trade Forex. Many years later another opportunity was seen to create spread betting in the United Kingdom but covered under a different section of law and therefore tax free perhaps providing different incentives to the retail client and also different taxable arrangements taxing the provider from their profits. In particulr forex accounts are subject to capital gains tax in the United Kingdom and Ireland as you're buying and selling currency and this classified as investing. Financial spread betting is different as you are not actually purchasing / selling the currency instruments but placing a bet on their movements with a spread betting provider and these wagers would have to be in a different type of account. The fact that your forex provider may hedge your position in the underlying market doesn't matter. This is how they get spread betting classified as gambling and why it's tax free as a result. So in essence forex in the traditional sense and forex spread betting are basically different products offering the same means to an end. Those financial spread betting providers provide exactly the same charting applications, indicators, and financial products as direct access brokers. Q. Why would anyone in the UK trade forex when they can spread bet instead? A: Because you want to tell your friends you're a 'trader' not a 'gambler' Jokes aside this can partly be attributed to broker leverage (although it is less of an issue these days). For many new traders, who are starting with a small pot, there isn't the flexibility you can get with the normal forex market makers. For example, if your method calls for a 100-pip stop and the smallest position size available to you is .50p (standard with most spread betting firms) then you need a fund of at least £5000 to arrive at a 1% risk profile. Thus, the main reason is probably the minimum bet value. One thing to scrutinise is the spread. The spread will ultimately mash you in this game if you are only going for 20 pip targets. It is a tough game to beat when you have a spread of 2 or 3 pips and you are not swing trading. Let's say you trade a 2 pip spread on cable and your target is 20 (not mentioning the people who only target 5-10pips) - that is an effective commission charge of 10%! Really to make a living off this, the effective commissions need to be more like 1-2% This is relative to your total pips, i.e. 2 pips paid in spread/commission relative to a 100-200pips target isn't bad but that's swing trading. I'm sure you can get by on a bit more but it's a serious factor to overcome when scalping if you start off every trade at -2. Think about futures trading in bonds or the indexes and then you pay a small $5 commission and you can use limit orders meaning you start at 0 - that's a whole extra 2 pips EVERY trade you take - that adds up in the long run. Of course, for scalpers the smallest possible spread would be the major factor in the choice of trade execution partner. So for scalping you really have to try to find the lowest spread possible. in fact if you are scalping don't trade FX at all, trade futures where you can use limit orders to effectively do away with the spread. Don't get me wrong, I love Forex but when it comes to commissions, futures trading can be cheaper and easier to control the win ratio / spread factors - it's not for everyone though. The lowest spread is absolutely crucial -: Let's say you trade at around $10 per pip. That's $20 you give up on every trade (2 pip spread). 5 trades a week = $100. Let's say there are 48 trading weeks in the year = $4800. Find a provider where you can reduce that spread to 1 and you immediately make an extra $2400 a year. Anyway, you get the point. 2 pips for 50 pips target might also be ok. I don't have the stats to back this up but it's pretty clear to me that anything above 5% is a big disadvantage to your win ratio. Swing trading 100pips + go for financial spread betting and if you see anything different from the spot price, complain - they have to give you a trade correction. Another problem is that some spread betting firms have a system whereby each trade is actually closed overnight and re-opened at a new price. The spread is applied with each new trade, so, on trades that need be to held for days through any sort of drawdown, it's theoretically possible to find your account's real balance being eroded by a series of daily losses. Having said that most UK forex traders stick to spread betting due to the tax free medium aspect and the ability to bet on stock exchanges, shares, energy markets, precious metals, etc. Because as far as pricing and execution, there is no real difference. For instance at FXCM both the spreadbet account and regular micro/standard account use the same NDD forex execution. In addition spread betting is far simpler and easier to learn (demo and real) as it's pretty straight forward. Q. Just realised that spread betting companies don't use all the digits. For EUR/USD Tradefair uses 4 decimal places instead of 5 for a broker. So is it better to go with a broker? A: More important to have a look at the information sheet or similar for each product. On Finspreads as an example, it states 'Bet per': for the Dow, 'Bet per' is 1, so a long of £1 per pt at 11,000 is equivalent to a position of £11,000: for GBP/USD Rolling, their 'Bet per' is per 0.0001, so going long at current price of 1.4933 at £1 per 0.0001 equates to a position of £14,933. Of course, we've all got these things wrong at some time and ended up with a position ten times too large (or small). Forex Major Pairs Foreign exchange is the trading of currencies on the forex markets around the world. Most people may be familiar with the other financial markets in the world: The stock market, the bond market maybe even The Commodities Market, but fewer people actually know that these markets are dwarfed by the forex market. Yes, that’s actually the case. The forex market is 50 times bigger than the stock market and 15 times larger than the bonds market, but if the forex market is so large, why haven’t you as an investor been told about it? There are a few reasons for this. First of all, the forex market was not easy to trade on just a decade or two ago. Unlike the other financial markets there is no centralised exchange like the stock exchange. Instead, the forex market is purely an electronic market and exists only when someone makes a trade, but that is all the time. This market is called the Interbank market, because it is the internal market for banks all over the world. This means that if you want to trade forex, you must have access to the interbank market. Brokers are companies who have access to the Interbank market and with the growth of the internet, more and more brokers have moved their business online. Today, there are more than 100 hundred brokers available for online trading. This has opened up the opportunity for individual traders to make money from trading forex online trough an online platform offered by their broker. A platform gives you access to trade any of the hundreds of currencies around the world. Traders make money by speculating in price changes of currency pairs. A forex pair is simply two currencies that you simoultaneously sell and buy. You always sell and buy currencies in pairs, because currencies are always valued against another currency, which makes sense if you think about it. So as a trader you can make money by both selling and buying currency and you can make money on price rises and price drops. This means you can make money no matter the market circumstances. As mentioned there are more currencies available for trading than you can get your head around, but that doesn’t mean you should trade all of them. Most traders choose one or two pairs that they focus their attention on, because they will then better be able to know everything about what moves those currencies. Of course you can easily trade more currencies, but you should probably start out by only trading one. There are some pairs that are traded more than others, significantly more actually. These are called the Forex Major Currency Pairs and most forex traders trade these. Those that don’t usually trade what is known as ‘exotic forex pairs’. Let’s have a look at the Forex Major Pairs : US Dollar/Japanese Yen (USD/JPY) Euro/US Dollar (EUR/USD) US Dollar/Swiss franc (USD/CHF) British Pound/US Dollar (GBP/USD) You can see that the USD is a part of all these pairs, which is because of it’s status as reserve currency. Each major forex pair responds to different events and requires a unique approach and strategy. Mensajes recientes Learn How to Trade Forex Páginas Copyright 2016 Forex Trading Guide - All Rights reserved. Logical Forex Scalping and Trading FAQ What are the best currency pairs to trade? We have studied and reviewed and traded just about every currency pair, and without a doubt, the best combination of patterns, liquidity, spreads, price flow, and other factors… including how well they work with Logical Forex especially for forex scalping… are the EUR/USD and EUR/JPY. We have spent over 10,000 hours with these pairs, and KNOW they work well and consistently, and have for many years… and will continue to do so. We encourage you to leverage on this information, and START with the EUR/USD and EUR/JPY. You can use things like our Pattern Library to take advantage our research so that you can quickly "burn into your brain" some easy-to-trade forex patterns. You can easily use our blog postings and other materials, too, since most everything we do revolves around these currency pairs. Take the easy way – trade with the proven pairs. Of course, you can always do as you wish, and the process of "learning" how a currency pair "works" is basically the same between pairs, but you will be having to learn more than you need to do if you just use and apply to your own trading what we have already prepared for you. You can also apply Logical Forex to any other instrument, including ETF, stocks, etc, but the patterns and flows in those instruments are not quite the same as in forex trading… but they ARE patterns you can train your brain to recognize. Just use the Logical Forex materials to guide you along… but again, it will be easier for you to absorb if you START with EUR/USD and EUR/JPY spot forex. Currency Pair Correlations What are currency pair correlations? It is simply a measure of how similarly one currency pair moves in comparison to another. Just as an example, let’s say that the EURUSD goes up 500 pips in a month. During that same month, let’s say that the GBPUSD goes up 1,000 pips. We are not too concerned about how many pips the pairs moved but how similar the moves were. If the prices went straight up, then they are highly correlated. If the EURUSD went straight up and the GBPUSD stayed in a range then shot up, they would be less correlated. When they move in the same direction at the same time, up in this case, they are positively correlated. Negative correlation is when one pair goes up and the other goes down. In this example, if the EURUSD went up at approximately the same time the GBPUSD was going down and to a similar degree, then there would be a high degree of negative correlation. How does this us help as traders? If there is a high negative or positive correlation, there may be times when one pair moves before the other highly correlated pair and can serve as a forecast or a confirmation of a move in the pair we are trading. In addition, you might want to stay away from taking trades that are two highly correlated because that increases your risk that the same move will affect all your trades in a similar fashion. Here is a great free resource that I found that has up to date correlation numbers. Of course this information should not be taken as the primary means of entering a trade, but keeping an eye on correlations can be a tremendous secondary indicator that can give you more confidence in a trade. Hope that helps! Artículos Relacionados 3 Non Forex Markets That You Should Watch to Trade Forex One Thing You Do Not Want To Hear About Learning To Trade 7 Ways to Profit From the Upcoming Oil Rebound 7 Reasons to Trade Four Hour Charts The 7 Unconventional Rules of Maverick Forex Traders Learn what successful Forex traders know about trading that you don't. Download the FREE book to find out. About Hugh Kimura Hi, I'm Hugh Kimura and my goal is to create a full-time income, trading Forex. If that is your goal too, then I invite you to join me on the journey. I will uncover what works and what doesn't. and have some fun in the process. Click here to follow me on Twitter. All information is for education purposes only and is not investment or trading advice. Learn the 7 Rules of Successful Forex Traders These rules probably go against everything you are doing now. Download the book to find out what they are. Forex Pairs: Understanding How Forex Currency Trading Works If you want to be able to effectively trade the Forex, then you need to understand how Forex pairs work. "Forex pairs" is another way of saying "currency pair." All trading in the Forex market is done not with individual currencies, but with currency pairs. To trade the U.S. Dollar (USD) you have to choose another currency to trade it against. This is why understanding Forex pairs is so important. It's not enough to understand one currency. You have to understand how two currencies are going to relate to one another. The major currencies, and major currency pairs, will account for nearly 80-85% of all Forex trades world wide. The reasons for this are fairly simple and straight forward. The strongest economies are often the most stable and come from the most stable governments. This security and strength of economy is what makes these main currencies strongest and the best to trade. Look at Zimbabwe's hyperinflation as a reason why smaller nations and nations with dictators aren't trusted in currency trading. There are too many variables, and an economy can completely change overnight. Governments that operate by Democracy and that are strong aren't likely to fold. Economies given freedom to operate on their own also tend to work in a stable way. Even the most unstable weeks or months in the United States would have less effect on the currency than if China's leadership decided to shut out all foreign investment tomorrow. This is part of the reason China's currency hasn't broken into the major players, while nations like Canada and New Zealand have. While it's unlikely that China would have a sudden shift like this, it is possible. That type of insecurity is why China's Yuan isn't going to be in position to stand up with the CAD, NZD, or CHF any time soon. The most common Forex pairs will get traded the most because the Forex market is volatile enough without the dangers of governments shutting down foreign investment, military coups, or any of the other common worries associated with these nations. Russia fighting Georgia, China cracking down on dissent, India and Pakistan - even modern developed nations can be too unstable for good currency strength. So when you're looking for a good currency pair to trade, don't get cute with Yuans, Pesos, or Rubles, but stay with the big dogs. They provide all the profit opportunity that a good Forex trader needs. Forex Currency Pair Correlations Risk Disclosure: Foreign Currency trading and trading on margin carries a high level of risk and can result in loss of part or all of your investment. Due to the level of risk and market volatility, Foreign Currency trading may not be suitable for all investors and you should not invest money you cannot afford to lose. Before deciding to invest in the foreign currency exchange market you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with foreign currency exchange trading, and seek advice from an independent financial advisor should you have any doubts. All information and opinions on this website are for general informational purposes only and do not constitute investment advice. CountingPips Forex News & Market Analysis Copyright © 2016 All Rights Reserved Daniel S. Currency Trading Tips - How to Choose the Best Pair For Forex Currency Trade Does anyone of you have an idea on which currency pairs are the best to trade in forex? Is it the major currency pairs, the cross pairs or the exotic pairs? Well there isn't really a right and wrong answer; it depends on how you define 'best'. Does anyone of you have an idea on which currency pairs are the best to trade in forex? Is it the major currency pairs, the cross pairs or the exotic pairs? Well there isn't really a right and wrong answer; it depends on how you define 'best'. If a currency pair has tight spreads, it may be considered the best trading currency pair for you, but may not apply for others. So now we'll discuss on various factors on choosing a forex pair: 1. Spreads - There is always an advantage to trade currency pairs that have a tight spread in forex trading. It means that lesser spreads equal to more profit, lesser spreads give you more room for price fluctuation if you have a tight stop loss and lesser spreads may help you to breakeven your forex trade earlier. Does that make sense to you? EUR/USD has the tightest spread of 2 to 3 pips for most forex brokers and even 1 pip for some brokers, while GBP/JPY has spread of 6 to 10 pips. For some forex traders who care a lot on spreads, he will certainly choose the formal over the latter. 2. Trendiness - For chartist traders like me, I depend mostly on technical indicators to help me decide which forex currency pair to trade. Although volatility is considered good, but it is then more risky and need a wider range of stop loss. p.ej. is GBP/USD. On my forex trading screen, I have 7 to 8 currency pairs in smaller windows, so that I'm able to decide which pair is the trendiest, even when all pairs seem to have a trend. Though EUR/USD and USD/CHF is negatively correlated 90% of the time, you will sometimes find either of the pairs trending better than the other. Therefore you will want to choose the more trendy pair to trade with the help of some forex technical indicators. 3. Trading Sessions - The best time to trade forex is when the market is the most active and therefore has the biggest volume of trades. During Asian hours when Tokyo opens, the better trading time is from 7PM EST to 10PM EST. But since not all the currency pairs are actively moving, you may want to trade AUD/USD as it starts to move during the stated timing. When London market opens, this is where you can trade almost all the currency pairs. I will trade from 3AM EST to 6AM EST depending on the trendiness of the pair; example is GBP/USD, EUR/USD etc. Another trading session which will experience high volatility is from 8AM EST to 12PM EST where both the London and U.S. markets are open at the same time. After looking at the above factors, do you think there is a right and wrong answer on choosing the best forex currency pair? I doubt so. As long as you are using a reliable forex trading system to help you, all currency pairs can be profitable. To know more on the behavior of the currency pairs . you can find it in my FREE forex ebook with a forex trading system that can help you generate profits consistently. Fuente: Free Articles de ArticlesFactory.com ABOUT THE AUTHOR Active between Sunday 4 p.m. Friday 3 p.m. Central Time CURRENCY BASICS Forex ( FOR eign currency EX change market) is traded in currency pairs and involves the simultaneous buying of one currency and selling of another, for example EUR/USD, (Euro/US Dollar) or USD/JPY, (US Dollar/Japanese Yen). As o ne currency goes up, the other goes down, similar to a teeter-totter. We buy or sell the 1 st or BASE currency, which sells or buys the other currency, called the COUNTER currency. Base Pair is WEAKER / Counter Pair is STRONGER Base Pair Price is GOING DOWN … SELL! SELL . bear, drubbing, going short, shorting (in Options it is a PUT) (This does NOT mean you have to own that currency to sell it..you are simply Shorting, buying the SELL or PUT) Base Pair is STRONGER / Counter Pair is WEAKER Base Pair Price is GOING UP… BUY! BUY . bull, going long (in Options it is a CALL) In Trading the TREND Direction: Base WEAKER – going DOWN – SELL! Base STRONGER – going UP – BUY! Samples of Trend Direction Trading: In Trading the COUNTER-TREND Direction: This is based on fact that currency movement will often reverse or re-trace. Base WEAKER – going DOWN – BUY! Base STRONGER – going UP – SELL! Samples of Counter-Trend Direction Trading: Currency pairs that do not involve the U.S. Dollar are called CROSS currencies. i.e. EUR/JPY ( Base/Cross) The major currencies: AUD = Australian Dollar CAD = Canadian Dollar CHF = Swiss Franc CNY = Chinese Yuan CZK = Czech Koruna DKK = Danish Krone EUR = Euro (currency of European Union) GBP = British Pound Sterling, also called Cable JPY = Japanese Yen KRW = Korean Won MXN = Mexican Peso MYR = Malaysian Ringgit NLG = Netherlands Guilder NOK = Norweigian Kroner NZD = New Zealand Dollar SEK = Swedish Krona SGD = Sinapore Dollar ZAR = South African Rand If interest rates go up with the Fed it typically strengthens the US Dollar. Dollar Index: going up =USD is stronger, going down = USD weaker When the price of GOLD is up, the USD is usually down..and vice-versa. UNDERSTANDING THE BASICS OF INCREASES AND DECLINES IN QUOTES (INDEXES) Using the currency pair of EUR/USD as study subject. EUR/USD = BASE/ COUNTER = $1/variable X Variable X is the quote amount or Index we watch. So when the price (variable X) or index is increasing the EUR or BASE currency is STRENGTHENING as it now takes more US Dollars or COUNTER currency to purchase the base currency. So you would BUY EUR betting on continued increases. Trading Strategies . There are countless numbers of ways to trade the Forex market and strategies may be either manually run or run with an automated program, such as an Expert Advisor or in short referred to as an 'EA'. Strategies may be devised to either trade 'with the trend', Selling when the Base pair is weak and Buying when the Base pair is strong; or they may be based on a 'counter-trend' strategy, which would Sell when the Base is strong and Buy when the base pair is weak. Though this 2nd. counter-trend method seems like it would be a losing way to trade, it is based on the known fact that a currency index does not always move in a straight line. So the market may surge forward, but will fall back (retrace) and change directions. Most trading strategies incorporate technical indicators, which are applied to a chart, to assist in seeing patterns and direction changes. The most common ones are Moving Averages, MACD (moving Average Convergence Divergence), Support, Resistance, Pivots Lines, Fibonacci Retracement Levels and Trend Lines. The Forex market is greatly impacted by financial and economic news around the globe. This is referred to as Fundamental Indicators. Some of the most market moving news events are the USA Non-Farm Payroll release, FOMC, and rate statement releases from major countries around the world. The good thing is that these are mostly confined to a strict release schedule and they are listed on a site called ForexFactory.com (see link below). As a Forex trader, you will learn the importance of keeping an ear on news events as the Forex market is greatly impacted by them. On our Forex Home tab under 'Education' you will find an XLS file that we try to keep current with past events. Also the Options Expiration calendars show when that event hits each month, another very volatile time. Typically we suggest avoiding the times of highest volatility because the Broker is flooded by so many orders they are unable to process them in a timely fashion so what happens is orders get 'slipped' or not filled or filled at dramatically different prices. Not good. Most events for the XLS sheet are from a site called Forex Factory. Here is the direct link to them: http://www.forexfactory.com/ In the USA we are mostly limited to 50:1 leverage. For some strategies, higher leverage, 200:1 or greater is recommended. Learn more on Leverage, Margin and Margin Calls at this link: & Gt; & gt; & gt; Click for Market Club 2 Week Free Trial <<< Below is a link to a free school you can go through to learn about Forex trading: The platform we use to run the Forex programs called 'Expert Advisors' or in short referred to as an 'EA' is a trading platform developed by MetaQuotes software called MetaTrader 4 or for short, MT4. MT4 proporciona herramientas y recursos que permiten a los comerciantes analizar el precio, colocar y administrar los oficios y emplear técnicas de negociación automatizadas. You can download the MT4 program, which will run on your home PC from numerous brokers. We recommend FX Open or FX Pro. When you open a Demo Account you can 'paper trade' without risking real money, just to learn and test strategies. This is an important step with every new program you get. Never trust someone else's results! You must verify them on a platform from a broker you plan on using. FXOpen MT4 Trading Terminal' You will typically need to download and install the platform, then open up a demo account before you can use it. The set up will either prompt you through this or from the MT4 platform, right click on the word 'Accounts' in the Terminal window, then select 'Open an Account'. Fill out the form they provide to get registered, making your desired selections. Take some time to explore the MT4 platform and learn its basic functionality. You will become more comfortable with it as you get more familiar with using it. On the SecretsFromTheHeart.com site, if y ou click on the Forex Auto-Trading tab there is a PDF file to help traders understand some of the basics of using the MT4 platform. Here is the direct link to that: http://www.secretsfromtheheart.com/Loading_Running_Troubleshooting_an_EA.pdf Investopia.com also offers a tutorial for learning the MT4 platform. The link is: They also have tips they recommend for success. The link is: You will need to try several methods both manually trading and using auto-trading programs to learn what you are most comfortable with using. In surfing the web you will likely find numerous free Forex forums. Many traders are there discussing their latest and greatest free 'Holy Grail' system. They can all look great at first but over time we learned that the forums are more of a distraction then a help. Doing your own research and study may prove more beneficial. U.S. Government Required Disclaimer : FOREX trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the FOREX markets. No negocie con dinero que no puede permitirse perder. This is neither a solicitation nor an offer to Buy/Sell currencies / futures or options. No se está haciendo ninguna representación de que cualquier cuenta tenga o sea probable obtener ganancias o pérdidas similares a las discutidas en este sitio web. El desempeño pasado de cualquier sistema o metodología comercial no es necesariamente indicativo de resultados futuros. CFTC RULE 4.41: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. DESCONOCIDO UN REGISTRO DE RENDIMIENTO REAL, LOS RESULTADOS SIMULADOS NO REPRESENTAN COMERCIO REAL. TAMBIÉN, DADO QUE LOS COMERCIOS NO HAN SIDO EJECUTADOS, LOS RESULTADOS PUEDEN TENER ALGUNO O ALGUNO COMPENSADO POR EL IMPACTO, SI CUALQUIERA, DE CIERTOS FACTORES DE MERCADO, COMO FALTA DE LIQUIDEZ. LOS PROGRAMAS DE COMERCIO SIMULADOS EN GENERAL ESTÁN SUJETOS AL FACTOR DE QUE SEAN DISEÑADOS CON EL BENEFICIO DE HINDSIGHT. NO SE HACE NINGUNA REPRESENTACIÓN QUE CUALQUIER CUENTA TENDRÁ O ES POSIBLE PARA LOGRAR GANANCIAS O PÉRDIDAS SIMILARES A LOS MOSTRADOS. Fundamentals - What Moves the Currency Markets Welcome to global financial markets! Just as a trader or investor can buy stock in a company, the foreign exchange (or forex for short) allows you to buy or sell currencies, which is in a way like owning a piece of the future rise or decline of an entire country’s economy. To determine where a particular country’s economy may be headed next, traders turn to a variety of data, including: gross domestic product (GDP), imports, exports, employment, unemployment, growth, debt, and many other factors. Collectively, these are often referred to as the fundamentals. Like any other market, the value of currencies responds to changes in supply and demand. When the world needs more Dollars, for example, the Dollar becomes worth more. When too many Dollars are available on the market, or the need for them declines for some reason, then the Dollar drops in value. The world’s currencies trade in pairs - one currency’s value either or rises or drops in comparison to another. Each currency has a 3-letter abbreviation, and the trailing currency of any pair is considered the base currency. The price at any given time tells you how much of the base currency is needed to equal exactly one unit of the leading currency. For example, when the EUR/USD pair is priced at 1.5000, this means that it takes 1.5 US Dollars to exchange for 1 Euro. If the Euro rises in value, then the EUR/USD price will also rise, as more US Dollars are needed to buy each Euro. Likewise, if the Euro drops in value, then the price of the EUR/USD pair will also drop, as now you need less US Dollars to equal each Euro. The value of the leading currency is not the only factor in the value of a particular pair. Any change in the value of the base currency obviously also affects this relationship. So, in the same example, if the US Dollar now rises in value, then the EUR/USD pair would drop, as now you need less Dollars to buy each Euro. And if the US Dollar drops in value, then the EUR/USD price would rise, as you need more of those US Dollars to equal each Euro. Therefore, it can be said that each currency pair goes up and down in value proportionately to the rise or drop in value of its leading currency. Likewise, the same currency pair also moves up and down in an inverse relationship to the increases or drops in value of its base currency. So if a trader expects that the US economy will go up, and the value of the US Dollar with it, then they may wish to sell the EUR/USD pair, since it will most likely go down in price in such a scenario. If the trader believes that the European economy will go up, bringing up the value of the Euro, then they would buy the EUR/USD pair instead. Another key factor which has an influence upon the value of a given currency is the interest rate that the central bank of a particular country charges for the use of its money. These interest rates are always changing, so it is wise to keep track of them. For example, if the Federal Reserve in the United States (commonly referred to as the Fed) lowers its interest rate, then typically the value of the US Dollar will drop as well, causing the EUR/USD pair to rise. If the Fed raises rates, then the US Dollar will typically go up as well, causing the EUR/USD to drop. The Fed’s counterpart in the European Union is the European Central Bank (the ECB). If they raise their interest rate, then usually the value of the Euro will go up as well, causing the EUR/USD to rise. If they lower their interest rate, then typically the Euro will drop in value as well, causing the EUR/USD to fall. Central banks are always caught in a delicate balancing act. If a country’s currency rises too far, its exports become too expensive and other countries may look elsewhere. Interest rates are sometimes also cut in an attempt to stimulate the economy, but if they get too low then inflation can set in. Then it is time to start raising them again in order to slow growth. Higher interest rates also tend to attract more foreign investments (which is why the currency of that country frequently goes up in step with the interest rates), meanwhile cheaper interest rates tend to stimulate lending inside the country and therefore economic growth. Mar 28, 2013 … Forex trading is based on the fact that currencies are constantly changing in … traders gain successful strategies from their fellow forex traders? Dec 16, 2014 · Forex Trading is trading currencies from different countries against each other. Forex is acronym of Foreign Exchange. For example, in Europe the currency … Our starting point is the currency carry trade, which consists of selling low interest … uncovered interest rate parity (UIP) hypothesizes that the carry gain due to the …. could be due to an increase in the price of insurance against a crash risk, or it could …. We use data on foreign exchange options to measure the cost of insur… How to Profit with Forex Trading – Getting Started – Forex profit is an idea that has been sold around the internet to people looking for easy answers to their money problems. It’s elusive to most forex traders though because everyone is looking for profit at high speed. Sometimes forex profit can c… EXPOSED: Hot Shot Hedge Fund’s " Secret Trading System " Underground Forex System "Cracks Currency Trading Code" Reducing Losses & Scoops Massive … – Forex Trading Psychology | TRADE24Successful forex trading involves the following factors: the control of … full potential for financial gains in this space, while the rest merely functions as a … Traders need to guard themselves against feelings of greed, fear, anxiety, and even elation … Rather than remaining true to your original analysis of a currency pair tr… Feb 17, 2015 … This is because the forex market encompasses the currencies of … in the market, it almost always costs more to gain access to that currency. …. You will never see a quoted price that pits Apple against Google (AAPL/GOOG). Learn how traders use the currency carry trade in the forex market using two currencies. This online forex guide provides detailed overview of trading currency pairs, understanding every pair’s unique qualities and finding out what those qualities are. Forex trading is the act of buying or selling one world currency against … If you expect the Euro to gain value faster than the US Dollar, you would buy the pair. Currency Trading News and Forex Forecasts daily from Forex Rate. & # 8230; The Euro is gaining ground versus the US dollar during the morning sessions in Europe. & # 8230; The British Pound remains under pressure against the US Dollar after a week of … Showcase your trading skills against your peers in FXCM's $10,000 Monthly … is based on your monthly total return (percentage gain), calculated using this formula: … Am I restricted on trading styles or currency pairs during the contest? You can use it to make impressive gains and simultaneously risk excessive loss. & # 8230; In the forex world, brokers allow trading of foreign currencies to be done on margin. & # 8230; This is not too terrible, you would have plenty of capital left to try aga… Forex Trading is trading currencies from different countries against each other. & # 8230; If you had chosen to end your trade at that point, you would have a $100 gain. Hedging Fx Risk With Fx Swaps Not to be confused with Foreign exchange swap. & # 8230; A currency swap (or a cross currency swap) is a foreign exchange derivative … 2.1 Hedging example. & # 8230; a forward exchange contract, or debt in Euro, or futures or perhaps a currency swap. & # 8230; Tools and techniques: foreign exchange forwards … market, the best- developed market FOREX.com offers low variable spreads. See the spreads FOREX.com customers are trading right now on our website. 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Sus derechos legales a los consumidores no se ven afectados. © Finanzas Magnates 2015 Todos los Derechos Reservados FXDD Announces Four New Currency Pairs for Retail Traders including USD/CNH Trading GBPAUD Currency Pair The GBP/AUD pair is not a major currency pair, but is a currency cross of the British Pound and the Australian Dollar. Both are two of the most widely traded currencies across the global, which means that liquidity, or the amount of investors buying and selling the GBP/AUD, is fairly strong. As such, the average spread retail traders typically pay on trading one standard lot GBP/AUD is 3.9-4.3-pips, and this spread is lowest during two separate times during the day: when Asia is open, from 23:00 GMT to 02:00 GMT; and when Europe is open, from 03:00 GMT to 16:00 GMT. When the Australian and British markets are offline, trading of the GBP/AUD thins out, and spreads typically rise from 17:00 GMT to 22:00 GMT. Factors Influencing the GBPAUD Pair Like any other currency pair, the most important factors that determine the GBP/AUD’s price are the local interest rates in each economy. The Bank of England decides the U.K. interest rates typically on the first Thursday of every month. The Reserve Bank of Australia also meets during the first week of every month. A decision to cut interest rates or increase accommodative monetary measures has historically been negative for the local currency. Picture for illustration purposes only For example, if the Bank of England decides to cut interest rates, the GBP/AUD is likely to depreciate; if the Reserve Bank of Australia decides to cut interest rates, the GBP/AUD is likely to appreciate. The basis for the monetary policy decisions and therefore also an important factor for the pair’s price is each economy’s output, or gross domestic product (GDP). Inflation levels are also important factors for the central banks when making rate decisions and consumer price Index (CPI) results will therefore strongly affect trading. Major Chinese data also plays a role, considering that China is Australia’s largest trading partner. Mainly, this comes in the form of base metals export as well as other commodities, which China needs to fuel its rapid, but slowing growth. Additionally, other releases that affect trading are indicators that tell of the health of the economy. Higher retail sales and a low unemployment rate, mean a strong economy. The U.K. Production Managers’ Index will indicate future GDP reports. The producer price index will also give clues to inflation changes, but are not as definitive as the CPI. Australian Current Account and Trade Balance data tend to influence the GBP/AUD as gauges of Chinese growth prospects. Analyzing GBP/AUD Charts While neither country uses the Euro, both are major trading partners to the Euro-zone. The Sterling is considered a safe haven currency when compared to the Australian, but will trade as a risky currency when compared to other safe havens like the U.S. Dollar or the Yen. The Australian Dollar has traded exclusively as a risky currency, and is also greatly influenced by emerging markets. Therefore, bad news out of China and the Euro-zone tend to benefit the GBP/AUD, while news of strong global growth or easing of the Euro-zone crisis tend to hurt the GBP/AUD. GBP/AUD Chart Analysis – Past Data On the GBP/AUD weekly chart, it is clear that the pair has been trading mostly lower to sideways for the past two years, as the exuberance for global growth has been tempered by financial worries rooted in Europe. As explained earlier, this has led to dramatic swings in the pair. With prices moving higher off of the lows established in February and August of 2012, prices seem supported if only marginally through the beginning of 2013. Given the descending channel that is in place, and the trendline off of the lows, price should be near 1.5175 on March 1, with an expected range of 1.4890 to 1.5460. If the Euro-zone crisis eases substantially, and Chinese growth concerns dissipate, it is possible to see the GBP/AUD shift lower towards 1.4350. Trading GBPAUD – Summary Typical Spreads on GBPAUD: 3.9 – 4.3 Pips (During trading hours) Most active . Asian Session (23:00 GMT to 02:00 GMT) /London Session (03:00 GMT to 16:00 GMT) Widening Spreads between: 17:00 GMT to 22:00 GMT Preferred Brokers: Pepperstone (1.2 – 5 pips 1 /0.3 – 4 pips 2 ) | LMAX Exchange (0.5-3 Pips) 1 Pepperstone Standard Account 2 Pepperstone Razor Account Currency Correlation – Breakouts Currency Correlation – Breakouts Correlation . Pronunciation:/ˌkɒrəˈleɪʃ(ə)n, -rɪ-/ “a mutual relationship or connection between two or more things” (Oxford English Dictionary). We have written a few posts on FX correlation and cross currency analysis trading before in the blog and often reference the currency “relative strength” charts when looking for the strongest v weakest to trade. Today the markets gave an excellent opportunity to catch a breakout trade as the GBP/USD pair was slow to react to dollar weakness across the board. Cross market analysis/currency correlations gave an excellent insight into the prevailing market sentiment. One way of looking at correlation setups is using something like an opening range breakout; the ACD method by Mark Fisher can be used in this way. Anyway, back to the example at hand… Let’s start by looking at three charts (4 hour timeframe) showing GBP/USD, EUR/USD and USD/CHF respectively. Of the three charts only one of them has failed to breakout of the recent range. It’s the GBP/USD chart on the far left. Do we think that this resistance is looking fragile at this stage perhaps? A Forex Correlation Trading Strategy With the above in mind we can then look for a setup as we never enter blindly and would need to quantify the risk with a stop loss and take profit target, or indeed a trailing stop. When we go to the lower timeframe the early stages of a trend line breakout higher can be seen. Furthermore, the chart shows how price has closed above the trend line and therefore confirmed the entry to a certain degree. So, at this stage we know two things about the market: The dollar is under pressure and is loosing ground against multiple currencies (further to the ones I have showed above there was a breakout on USD/CAD and, more to the point, the U.S. dollar index ). We have a trade setup, in the direction of the near term trend/current market sentiment, on the pair that is lagging – GBP/USD in this instance. Now there will be days when the currency which is lagging is doing so for a very good reason. It’s sometimes worth checking the news to see if there is any obvious reason. If everything appears to be sound then the currency may be ready to follow the others and breakout… Did The Breakout Have Legs? And here we have it; GBP/USD (see below) has now followed the other pairs and moved significantly to the upside. The market had shown us that the dollar was not in favour today and we identified a setup to utilise in order to trade against this weakness. It’s not always going to be a case of taking a trade – sometimes this currency correlation analysis is going to keep us out of the bad trades when we realise that the opposite has happened and we were just about to trade the one pair that had a breakout, while the others were not ready to follow. Correlation Trading Is Just A Piece Of The Puzzle. The above is just another example of how we prefer to see many elements working in our favour when looking for a setup. A currency correlation strategy is just one approach that can be used to filter the numerous setups we see when analysing the Forex market. New traders often look at seemingly good technical setups that have “failed” and dismiss technical analysis on the strength of this… Sometimes they need to look at the big picture… As ever, this is not a recommendation to go out and trade these setups blindly; the intention is to give people something to think about and test themselves through a demo trading account without risking any money. Never risk any money on the back of what we say or anyone else – do your own due diligence at all times. Hopefully you have enjoyed this overview, giving another look at how we view the Forex market. Remember that money management, trading psychology and all round continuous self improvement are vital if you aspire to trade the markets successfully. Please share the post with the “share/save” tool below if you have found it to be of interest and maybe check some of the advertisers links who help pay for the day to day running of this blog if you would like to see further posts. Related search terms: Forex breakout, volatility breakout trading, leading indicator, breakout indicator,price action trading, breakout trading strategy, breakout trading system, day trading breakouts, breakout technical analysis.
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