What You Need To Know On Commonly Traded Forex Pairs

Forex trading or forex exchange trading is the buying and selling of currencies where one speculates on the value of one currency against the other in the global market. Forex trading is popular among investors worldwide as the Forex market is the largest financial market with trades in trillions.

The most commonly traded pairs are the majors such as USD, EUR, GBP, CHF, CAD, and JPY. However, there are other pairs that you need to know as well. The NAGA broker offers a wide range of forex currency pairs to traders and investors worldwide.

What are Forex pairs?

A forex pair is a currency pair with a set of two currencies where one currency is measured by comparison to another or traded against each other. The 4 kinds of currency pairs are categorized based on their liquidity and popularity among investors. They are the foundation of currency trading in the Forex market.

Also, you can trade the NAGA forex, stocks, cryptocurrency, and other instruments within a safe and user-friendly environment. Also, every pair has different market conditions and unique characteristics that one should be aware of before they try any trades.

All investors need to gain prior knowledge about forex pairs and their roles in the financial market. Here are a few benefits that can help you learn more about the forex currency pairs.

There are several benefits of forex's best currency pairs to trade-

  1. 24-hour trading - You can trade forex 24 hours and 5 days a week and that allows traders to take advantage of trading opportunities in different time zones throughout. Investors can use the NAGA mobile trading app, trade from anywhere, and stay informed about fraud with the NAGA scam alert. 
  2. Liquidity - The forex market is the most liquid financial market with an average trading volume of more than $ 5 trillion. Traders can use the high liquidity and enter/exit trades at favourable prices and with ease. The high liquidity of the forex market attracts thousands of traders worldwide. 
  3. High Volatility - High volatility allows traders to make large profits off the forex trading pairs. 
  4. Flexibility - Traders can use several different strategies to trade forex currency pairs. This gives them a chance how to read forex pairs and make the best choices with multiple time frames that will suit their trading style. 
  5. Diversification - Trading different forex pairs allows you to improve and diversify your portfolio and gain more experience in the market. Also, diversification reduces overall risks and spreads investments across various markets. 
  6. Several currency pair options - The forex market and online forex brokers offer you a wide range of currency pairs. You can choose from popular pairs, less traded crosses, or exotic currency pairs. This can help traders explore many options and choose from the ones that suit their trading style. 
  7. Leverage - Traders can control and manage large positions with small amounts of money. However, leverage can be risky and it can also magnify your profits. Traders should be aware of the risks and trade with effective strategies. Also, beginners should trade leverage at the discretion of expert and experienced traders and investors.

The three main types of Forex pairs

  • Major pairs - The major pairs are the most popular and heavily traded currency pairs which include the EURO, The US dollar, The British pound, The Swiss Franc, the Australian dollar, the Canadian Dollar, and the Japanese Yen. Major pairs are traded mostly because of their stability in the global financial market and because they attract traders. A few examples of pairs are – GBP/USD, EUR/USD, and USD/JPY. You and read the NAGA reviews and find out more about the different currency pairs before making trade decisions. 
  • Minor Pairs - The minor pairs include currencies that are not in the Major pairs category and are traded less often compared to minor pairs. Minor pairs are also known as cross-currency pairs, and they have a low trading volume with higher spreads compared to the major forex currency pairs. 
  • Exotic pairs - Exotic pairs consist of at least one currency from the market economy. These pairs have lower liquidity compared to major & minor pairs and are more volatile than the other two pairs. A few examples include USD/MXN and USD/TRY. You can read a NAGA review and learn about several forex pairs.

Why should beginners trade popular forex pairs?

Beginners can take advantage of popular forex pairs for many reasons –

  1. Tight spreads - Popular currency pairs offer tighter spreads due to high liquidity and allow traders to make larger profits and realize smaller losses. The high NAGA ratings attract beginner traders to the platform because of several forex pair options. 
  2. Regulations - Beginners know less and often tend to fall into difficult situations while making trade decisions. Hence, for them, it is important to choose fully regulated brokers and follow financial compliance from the government and other authoritative bodies. Regulations are managed by central banks that make it more predictable for beginners to worry less. 
  3. Predictability - Popular currency pairs are known for their long history and wider preference by investors and traders. This help beginners make easier decisions to go for popular forex pairs at least to start.

Final Word

Traders and investors of all experience levels must understand forex pairs before entering the forex market for real-time trades. The abovementioned will help you understand the basics of forex pairs. Also, beginners have suggested demo accounts before investing real money.

A beginner should try different forex pairs and then choose long-term pairs that suit their trading style and requirement. One can check out the NAGA rating to find out more about popular forex pairs and the platforms’ exclusive functionalities.

NAGA offers a wide range of financial products to trade and its unique social trading allows uses to see and copy trades from successful traders. Moreover, the platform offers trading education via articles, blogs, webinars, e-books, and through its social features where you can interact with an expert trader.

They have a great reputation for being an ideal platform for beginners and a very user-friendly platform for all traders worldwide. Try the NAGA mobile trading app on your iOS and Android devices and trade from anywhere and anytime.

Disclaimer : This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication.

Location: Spain

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