The best currency pairs for beginners on binary options

Bing: The best currency pairs

The best currency pairs for beginners on binary options

The best currency pairs

Currencies are always quoted in pairs, one currency value against another. The price of the British Pound against the US Dollar , the Swiss Franc against the British Pound , the Canadian Dollar against the US Dollar and so on. Even from this set of three currency pairs, you can see that some individual currencies appear more than once.

You can also trade ICE . Dollar Index (USDX) futures, the primary benchmark for the international value of the . dollar and the world’s most widely-recognized traded currency index. Our USDX complex includes futures, options on futures and mini USDX futures.

All coin exchanges charge their clients’ fees for the conversion of traditional to digital tokens and cryptocurrencies into another electronic tender. Compare the rates carefully mainly if you will transfer large amounts between two or more accounts. Credit card payments usually linger around the range of three and four percent while bank transfers typically cost from one up to percent.

Now, this when it can get complicated and confusing for beginner investors and traders, as sometimes different people mean different things when they talk about the price of a currency. We will take a look at the basic conventions concerning both traditional and cryptocurrencies, and how to interpret the various currency pairs. For those who are already familiar with forex trading and international exchange rates, this article might seem too simplistic, but for those who are new to the field, it’s absolutely essential to understand the basic terms.

Two common questions that I get from aspiring forex traders are: “which currency pairs are best to trade?” and “what are the best times to trade?”

Currency pairs are generally written by concatenating the ISO currency codes (ISO 4217) of the base currency and the counter currency, and then separating the two codes with a slash. Alternatively the slash may be omitted, or replaced by either a dot or a dash. A widely traded currency pair is the relation of the euro against the US dollar , designated as EUR/USD. The quotation EUR/USD means that one euro is exchanged for US dollars. Here, EUR is the base currency and USD is the quote currency(counter currency). This means that 1 Euro can be exchangeable to US Dollars.

In the first part of this article we discussed which currency pairs are the best to trade and explained the differences between the majors, crosses, and exotics. Today’s article is going to pick up where last week’s left off; we are going to discuss the best times to trade the forex market and the differences between the various FX trading sessions.

Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest (except for OANDA Europe Ltd customers who have negative balance protection). Information on this website is general in nature. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks. Refer to our legal section here .

Note: If you have not done so already please read part 1 first: The Best Currency Pairs to Trade. In the first part of this article we discussed which currency pairs are the best to trade and explained the differences between the majors, crosses, and exotics.

What's in this guide?

  • What is a currency pair?
  • Compare International Money Transfers
  • How does a currency pair work?
  • How do I know when is the right time to exchange my currency pair?
  • Frequently asked questions
What are the most popular currency pairs?

People who trade in currencies refer to the most commonly traded pairs as Majors. These account for around 85% of the foreign exchange market , exhibiting high market liquidity.

Additionally, you avoid taking opposite positions with the currency pairs that move against each other, at the same time.

Currency pairs compare the value of one currency to another — the base currency (or the first one) versus the second, or the quote currency. It indicates how much of the quote currency is needed to purchase one unit of the base currency. Currencies are identified by an ISO currency code , or their three-letter alphabetic code they are associated with on the international market. So, for the . dollar, the ISO code would be USD. 


Understanding Currency Pairs Correlation for Forex Trading.