What are the most profitable forex pairs to trade


10 Most Profitable Currency Pairs to Trade in Forex

  1. Euro & US Dollar (EUR/USD)
    The pairing of the European euro with the Us dollar is one of the most profitable currency…
  2. US Dollar & Japan Yen (USD/JPY)
    The pairing of the US dollar with the Japanese yen is considered to be the safest…
  3. Australian Dollar & Japanese Yen (AUD/JPY)
    The pairing of the Australian…

Here’s a look at six of the most tradable currency pairs in forex.
  • EUR/USD. YinYang/Getty Images. …
  • USD/JPY: Trading the “Gopher” The next most actively traded pair has traditionally been the USD/JPY. …
  • GBP/USD: Trading the “Cable” …
  • AUD/USD: Trading the “Aussie” …
  • USD/CAD: Trading the “Loonie” …
  • USD/CNY: Trading the Yuan.


What are the best forex currency pairs to trade?

Types of currency pairs

  • Major Currency Pairs. Major currency pairs ( Majors) or top traded currency pairs, that includes the U.S. …
  • EUR/USD. Amongst these popular currency pairs, the most popular pair by far would be the EUR/USD. …
  • JPY/USD. The pair of U.S. …
  • GBP/USD. …
  • AUS/USD. …
  • ZAR / USD. …
  • Minor Currency Pairs. …
  • Exotic Currency Pairs. …

What is the best currency pair to trade?

We identified the five best currency pairs to trade:

  • EUR/USD – (Euro/ U.S. dollar)
  • GBP/USD – (pound sterling/ U.S. dollar)
  • USD/CHF – (U.S. dollar/Swiss Franc)
  • USD/CAD – (U.S. dollar/Canadian dollar)
  • GBP/JPY – (Pound sterling/Japanese Yen

What are the most active Forex pairs?

We will discuss only the six best currency pairs in this article that are given below: –

  • USD to EUR
  • USD to JPY
  • USD to CAD
  • GBP to USD
  • USD to CHF
  • AUD to USD

What is the best currency pair?

What are the most predictable currency pairs?

  • AUD/USD – (Australian Dollar – US Dollar)
  • EUR/USD – (Euro – US Dollar)
  • GBP/USD – (Pound Sterling – US Dollar)
  • NZD/USD – (New Zealand Dollar – US Dollar)
  • USD/CHF – (US Dollar – Swiss Franc)

What forex pair makes the most money?

EUR/USDEUR/USD. EUR/USD is the most traded currency pair on the market, with EUR/USD transactions making up 24.0% of daily forex trades in 2019. The popularity of the EUR/USD pair comes from the fact that it is representative of the world’s two biggest economies: the European single market and the US.

What is the best pairs to trade?

What Are the Best Currency Pairs to Trade in Forex?US Dollar (USD)Euro (EUR)Australian Dollar (AUD)Swiss Franc (CHF)Canadian Dollar (CAD)Japanese Yen (JPY)British Pound (GBP)

Which pair is easiest to trade?

What is the Easiest Currency Pair to Trade? EUR/USD is not just the easiest, but also the most stable currency pair to trade. It is the best choice not only among beginners but also for professional traders. This is one of the most traded currency pairs due to tight spreads and liquidity.

Which forex pair is most stable?

List of Top 10 Stable Currency PairsEUR/USD. The EUR/USD currency pair takes the largest portion of the overall trading volume. … GBP/USD. GBP/USD is another heavily traded currency pair. … USD/JPY. USD/JPY is the second most traded currency pair. … USD/CAD. … AUD/USD. … USD/CNY. … USD/CHF. … GBP/JPY.More items…•

Which currency pair is most profitable in forex 2021?

Here’s a look at six of the most tradable currency pairs in forex.EUR/USD. YinYang/Getty Images. … USD/JPY: Trading the “Gopher” The next most actively traded pair has traditionally been the USD/JPY. … GBP/USD: Trading the “Cable” … AUD/USD: Trading the “Aussie” … USD/CAD: Trading the “Loonie” … USD/CNY: Trading the Yuan.

Which currency pair is most predictable?

1) AUD/USD: The Aussie dollar has been in the top rankings of predictability for several years, and for good reasons. This currency pair tends to travel in uptrends and downtrends which are easily defined, and when it moves out of them, the change of direction is abrupt and clear.

What is the cheapest currency pair to trade?

Low Spread Currency PairsEUR/USD pair, spreads from 0.1 pips! Spread / Daily Range = 1.5% (the lower the better) … USD/JPY, the second lowest spread pair. Spread/Daily Range = 2.1% … GBP/USD, a low spread pair that moves! Spread/Daily Range = 2.0% … USD/CHF, low spread – high stability. … EUR/JPY, non-USD pair with low spread.

How many pairs should a beginner trade?

If you’re just starting out, try to focus on 5 to 10 currency pairs. This will give you a few quality opportunities each month without it becoming overwhelming.

Which forex pair is best for day trading?

Six Best Forex Pairs to Trade for Swing TradingEUR/USD. As one of the larger, more stable currency pairs, EUR/USD doesn’t provide enough volatility to offer value to most day traders. … NZD/USD. … EUR/JPY. … USD/CAD. … AUD/USD. … EUR/CHF.

Which pairs move the most?

The most volatile major currency pairs are:AUD/JPY (Australian Dollar/Japanese Yen)NZD/JPY (New Zealand Dollar/Japanese Yen)AUD/USD (Australian Dollar/US Dollar)CAD/JPY (Canadian Dollar/Japanese Yen)AUD/GBP (Australian Dollar/Pound Sterling)

What moves USD JPY?

The main driver of this currency pair is not only Treasuries but interest rates in both Japan and the U.S. This means the pair is a measure of risk that determines when to buy or sell the USD/JPY in terms of interest rates. The direction of this pair can be determined by the direction of interest rates.

What are the Most Stable Currency Pairs?

The least volatile and thus the most stable forex pairs are majors:

What is the Safest Currency Pair to Trade?

Beginner traders are recommended to trade major currency pairs and
avoid trading exotics. Read trading recommendations for four major…

What is the World’s Strongest Currency?

The Kuwaiti dinar (KWD) is the world’s most expensive currency. The
strength of the currency is attributed to the fact that Kuwait is…

How Many Currency Pairs Should I Trade?

It is best to start learning by trading a single currency pair.
It is also advisable to trade a major currency pair, e.g., EUR/USD.

Why do forex come in pairs?

Currencies traded by these forex traders always come in pairs because you automatically buy a currency while selling a different currency and vice-versa. When looking at currency pairs, you will always find the base currency on the left side …

What are the most traded currency pairs?

The most-traded currency pairs are categorized as major forex currency pairs. USD/JPY, USD/CHF, NZD/USD, USD/CAD, EUR/USD, AUD/USD, and GBP/USD are the major forex pairs. Similarly, there is also the category of minor forex pairs which includes currency pairs that are not as prominent as the major currency pairs.

What is forex instrument?

There are many currency pairs available on foreign exchange which are also called forex instruments. These forex instruments are available for trading to the infinite number of registered forex traders on the marketplace. If you are a beginner in currency trading then you must be interested in knowing about the most profitable currency pairs …

What is the currency pair USD/CAD?

The USD/CAD pairing is a currency pair that is heavily dependent on oil as the country of Canada is one of the biggest exporters of crude oil. The two countries are also neighbors on very good terms and the pairing of their currencies observes a healthy 4% of the daily currency exchanges that take place on the market.

Why is the Euro pair so profitable?

The main reason why these two currencies are highly sought after is that they are linked between two of the biggest economies in the entire world. This particular pair has a lower spread due to its high demand as nearly 24% …

Where is the base currency on a currency pair?

When looking at currency pairs, you will always find the base currency on the left side of the pair and the quote currency on the right side of the pair. For example, in the pair USD/JPY, USD is the base currency and JPY is the quote currency. There are many currency pairs available on foreign exchange which are also called forex instruments.

Which currency pairs with the Japanese yen?

The pairing of the US dollar with the Japanese yen is considered to be the safest currency by traders as both countries have a very strong economy.

How do you predict the direction in which a forex pair is going?

If anyone tells you that they can consistently predict the direction of the market, then block them. Any trader who is better than the rest at picking those moves is likely sitting on a yacht and keeping quiet about it. They won’t be online trying to sell you their ‘signals’.

How long do you hold forex position for?

Let’s say that you toss a coin and base your trading on the outcome. If 50 out of 100 of your trades are correct, then you’d expect to at least break even.

What are the similarities between different forex pairs?

The next question is, what are the characteristics of the different forex pairs? Before we go into this in more detail, it is worth noting the generic features of forex trading.

What are major, minor and exotic forex pairs?

Most brokers will offer all or more of the following forex pairs. They are broken down into three categories: major, minor and exotics.

What are the differences between the forex pairs?

Hands-on trading of virtual funds in a demo account is the best way to get to know the different markets. It’s also a risk-free way to establish which ones turn a profit and which don’t.

Final thoughts?

If you’re new to trading, then starting out trading the major pairs would appear to be an excellent first step. There would also be value in trading them all and understanding the nature of the different markets.

Is the US-China trade relationship volatile?

The US-China trade relationship has been a volatile one in recent years, providing USD/CNY traders with plenty of speculative opportunities.

Is GBP/USD a positive or negative pair?

GBP/USD: Trading the “Cable”. The GBP/USD pair tends to have a negative correlation with the USD/CHF and a positive correlation to the EUR/USD. This is due to the positive correlation between the British pound, the Swiss franc, and the euro.

Is the AUD/USD pair negative?

The AUD/USD currency pair tends to have a negative correlation with the USD/CAD, USD/CHF, and USD/JPY pairs due to the U.S. dollar being the quote currency in these cases . The correlation with the USD/CAD is also due to the fact that both the Canadian and Australian dollars share a positive correlation with each another as both are commodity block currencies.

Is EUR/USD correlated with USD/CHF?

The EUR/USD currency pair tends to have a negative correlation with USD/CHF and a positive correlation with the GBP/USD. This is due to the positive correlation of, respectively, the euro, the British pound , and the Swiss franc .

Is CHF a negative currency?

The USD/CHF currency pair tends to have a negative correlation with the EUR/USD and GBP/USD pairs. This is due to the strong positive correlation between the Swiss franc, the British pound, and the euro. The franc has long been thought of as a safe haven for forex traders in times of political unrest.

What is stable currency pair?

Saying a “stable currency pair,” we mean one that doesn’t tend to sharp price fluctuations throughout a short time period. Given the classification above, the most liquid, and thus the least susceptible to large price swings, pairs are majors. The liquidity of these pairs is justified by high trading volume, especially supported by institutional trading. The high liquidity of a currency pair guarantees that you will not find yourself holding an asset you cannot sell when needed, simply because there is no one to buy it at the current price.

What are the three groups of currency pairs?

In the FX world, all currency pairs are conventionally divided into three groups: exotics, minors, and majors . Such classification is based on the criteria of trading volume, liquidity, and volatility. Exotics (e.g., USD/MXN, USD/TRY) are the pairs that include at least one currency of a developing country. They are prone to extremely high volatility, meaning their quotes change drastically, sometimes in a matter of seconds. The number of market participants trading exotics is relatively small, which means their trading volume is low.

What is the most expensive currency in the world?

The Kuwaiti dinar (KWD) is the world’s most expensive currency. The strength of the currency is attributed to the fact that Kuwait is a major exporter of oil to the global market.

Does GBP include the US dollar?

Unlike the currency pairs mentioned above, GBP/JPY doesn ’t include the US dollar. It is highly influenced by events taking place in Japan and the UK. The pair can develop strong trends allowing traders to gain many pips on a single position. A short period of overlap between the Asian and the European sessions can be great for trading this instrument.

Is EUR/CHF a currency?

Though EUR/CHF (Euro/Swiss Franc) is not a major currency pair, it is popular among traders, particularly due to its inverse relationship with EUR/USD. Liquidity in EUR/CHF reaches its peak during the European session. Those trading the currency pair follow European Central Bank (ECB) releases, European employment rates, and import/export data. Switzerland’s GDP data, inflation rates, and employment rates can affect the Swiss currency thus should be closely monitored by traders.

Is EUR/USD correlated with GBP?

This pair can boast high liquidity as it consists of the currencies of the two powerful markets. The pair is known to have a positive correlation with the GBP/USD and a negative correlation with USD/CHF. The best time to trade the pair is the overlap of the European and American trading sessions.

Is USD/JPY correlated with USD/CAD?

USD/JPY is the second most traded currency pair. It is positively correlated with USD/CAD and USD/CHF since the US dollar is the base currency there. USD/JPY can be successfully traded during the Asian and North American trading sessions, especially during important economic events either in Japan or the United States. You can find the detailed schedule of trading sessions here .

What is a good currency pair?

A good currency pair has liquidity and volume, which means a good money flow in the market for the currency pairs you are trading. Money flow equals price movement and, as you are trying to make money from the price fluctuations, this helps you enter and exit a Forex trade with a profit.

Why don’t forex traders fail?

Forex traders don’t fail because trading Forex is difficult. In reality, the trading process is simple. With a bit of knowledge and experience, anyone can make money from trading Forex currencies.

What are some examples of exotic currencies?

The exotics include a major currency such as the US dollar. For example, USD/ZAR – (US Dollar/South African Rand). Due to the lack of liquidity, we won’t be featuring the exotics in the top 10 Forex currency pairs to trade.

What is the EMA line for GBP/JPY?

GBP/JPY breaks below the 50 EMA (blue line) and heads back to the bottom of the range. Split two or three trades to target areas before support and make your final exit near to $148.00

Why is AUD/USD an excellent currency to trade?

AUD/USD is an excellent currency to trade because the price action is responsive to price zones, creating patterns of interest for high probability trades.

Why not trade during session overlaps?

Try not to trade during session overlaps because, during this time, spreads can increase.

Is there a setup for EUR/GBP?

There are no potential setups for EUR/GBP until the price action becomes more stable.

What are the five most profitable currency pairs?

More than 200 currencies are available for trading across the globe. Out of all of these, just a few whole currencies may provide the best returns:

Top five tips for choosing

When selecting an FX currency pair, what factors should you keep in mind?

Final thoughts

Many currency pairings are available for trading on the FX market, but this does not mean that they are all appropriate for trading. It’s more likely that your strategy will be successful if you choose the ideal currency pair to trade in forex.

What is the most profitable pair?

The most profitable pairs for you are those that match well with your trading approach. If all pairs are good fits, then all pairs have the potential to make you money, but this is rarely the case.

What is an exotic currency pair?

Exotic Currency Pairs. Exotic pairs consist of the currency of an emerging or semi-developed economy and the currency of a developed economy. Exotics are typically less active and more prone to erratic price movements. Furthermore, they are more expensive to trade.

What is a currency pair that doesn’t include the USD?

When a currency pair doesn’t include the USD but includes the currencies of two developed economies , it’s referred to as a minor or cross currency pair. Minors are not as frequently traded as the majors, but it hardly ever matters, because they’re still very active and provide an abundance of trading opportunities.

How to pick only one currency pair?

If you want to pick only one currency pair to trade, pick something with your local currency in it.

Why is the US dollar important?

The US dollar is important because central banks around the world maintain large USD reserves to meet international debt obligations, perform investments, and influence their domestic rate when needed.

What is a trading strategy?

Your trading strategy is based on your trading style and it contains rules on how to enter and exit your trades.

What are the different types of currency pairs?

There are different types of currency pairs, typically referred to as majors, minors, and exotics.

What is the next tip for trading forex?

The next tip for trading Forex is to observe the policy of the central bank. This recommendation stresses the role of the institution as the local financial regulator. Its policies have an impact on the exchange rate of the currency concerned.

What are the measures that affect forex trading?

Some measures that can have an impact on trading Forex include interest rates, sanering, currency distribution rates, and other steps. Every new policy provokes a reaction from financial actors, including speculators. Thus, it also has an impact on currency exchange rates used in trading Forex.

What is the corridor pattern in forex?

In trading Forex, the value of certain currencies may show a steady tendency to move within a horizontal range. This phenomenon can be observed when the value has never been bullish or bearish, which would change the pattern of price movements to diagonal. If you find the corridor pattern while trading Forex, you can easily predict the next currency value. As you can see, this strategy for trading Forex is quite easy to master, even for beginners.

What is sentiment based trading?

In a sentiment-based approach, traders believe that every movement of currency values ​​in trading Forex is controlled by big players or bookies. The existence of several bookies holding significant amounts of particular currencies can encourage changes in their exchange rates in the realm of trading Forex.

What is price action in forex?

Understanding price action is one of the safest tips in the world of trading Forex. This step refers to the analysis and interpretation of the latest currency exchange rates. These figures can be displayed in a variety of forms, such as candlestick charts or lines. Price action is regarded as a representation of price movements in the market. By understanding price action in trading Forex, you can build the right strategy, including determining entry and exit points to get the best returns in trading.

What does support and resistance mean in forex?

The levels of support and resistance indicate the range of price movements of an asset in trading Forex. This strategy is quite common for both beginners and professionals who are looking for safe trading techniques. Support shows the approximate price point the value of a falling asset does not breakthrough.

What is breakout in forex?

Breakout in trading Forex refers to the phenomenon when the price movement in the market exceeds the expected resistance point for the asset. Basically, when this happens, there is a possibility that the value will continue moving in line with the trend observed while trading Forex. Therefore, you should always consider the possibility of a breakout when trading Forex.


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