Which Currency Is Best To Trade On Forex Market? | All About Money Online

There probably is no “best” currency pair to trade in Forex. The EUR/USD, USD/CHF. GBP/USD and USD/JPY are known as the 4 major and are the most active and most liquid of all currency pairs. The choice of currency pairs to trade is more dependent on the strategy that you employ, your tolerance for risk and your investment objectives. Another element to consider is your trading timeframe. A daytrader would tend to have a short timeframe and as such is looking for volatility and movement of a currency pair in order to capture short term profits. Some directional or trend traders take a much longer perspective and look for a slow consistent movement over an extended period. The downtrend of the USD/CAD over the past 7 months might be a good example of that. Another group of traders may look to mitigate risk by deploying a hedge trading strategy in which they look for two closely correlated currency pairs that may move in a somewhat consistent relationship with each other. A hedge trader may be looking to generate a daily interest from their position or looking to take advantage of individual oscillations of the respective pairs. In this case maybe a EUR/USD and USD/CHF may be an example of such a position. So, in essence, there is really no “best” currency until you have decided on your “best” strategy. In the mean time may all your guesses be good ones.


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