What Is The Best Currency Pair To Trade? Forex Pairs

By T. OReilly

If you are exchanging Swiss francs for US dollars, for example, the currency pair is CHF/USD. The pair is the two currencies involved in your trade. Forex pairs are always involfed in currency trading.

Trading is limited in most cases to the currencies of the larger financial powers, though theoretically you could trade any two currencies of the world. This does not mean necessarily the most powerful politically or the biggest countries. Because of the global importance of the Swiss banks, Switzerland for example a small country, is a major player in the financial markets.

90% of the funds traded on the forex markets are accounted for by 6 major forex pairs. These are:

- the euro and US dollar: EUR/USD

- USD/GPD: the US dollar and the British pound, because it used to be synchronized on both sides of the Atlantic by a cable running under the ocean is nicknamed Cable.

- JPY/USD: the Japanese yen and the US dollar.

the US dollar and Swiss franc: USD/CHF

- USD/AUD: the US dollar and the Australian dollar.

- CAD/USD: the Canadian dollar and US dollar

In the beginning it is best to stick with the majors. But some traders do get involved in other combinations of these major currencies or pairs that include other currencies such as the New Zealand dollar.

According to a 2007 study, the US dollar is the most significan single currency and is involved in 85% of trades. The euro is second at 37%. Next come the yen, pound, Swiss franc, AUD and CAD in that order. Because there are always two currencies in every trade, these add up to more than 100%

What Is The Best Currency Pair For A Beginner?

If you are just starting out in forex, most experts advise beginning with the EUR/USD pair. This is because there is a lot of information about these currencies and the high liquidity results in a smaller spread, so your costs will be lower.

Some of the other currencies have particular characteristics which make most newbies avoid them unless they have special knowledge. For example the value of the Canadian dollar is strongly influenced by the price of oil because Canada is an oil exporter. The Japanese yen can also be affected by the price of oil in the opposite direction because Japan is a large consumer and importer of oil.

The best thing to do when you are starting out is probably to take the EUR/USD market and stay with that for the first few months at least. Most new traders would choose the GBP/USD out of the major forex pairs for the second choice. You will not want to get involved in a lot of different currencies when you are starting out. - 23204

About the Author:

Author, T. O'Reilly has worked at forex trading for the past two years and is up to $363 per day. Find out how you can tooforex pairs. Click here: http://daytradingthecurrencymarket.com

For Currency Trading Online To Thrive, Education Is Required

By John Eather

Currency trading online requires exactly the same basis in knowledge as any other kind of trading in foreign currency. This doesn't mean that not everyone can enter into this kind of endeavor; on the contrary, anyone can try. But what it does mean is it has to be looked at as anyone would look at entering a new career, with an educated eye.

There are some traders who have gone gung ho on very little knowledge at all and entered the market. These guys have even sometimes been successful at making a profit, but where the problem lies is in the long terms. Pure luck is not enough to carry any forex trader through in the long term. Most success stories in this industry tell us that a certain structure was adhered to when entering this market. It is safe to assume that this structure should be followed in order to achieve success.

Successful traders know that there is a very special psychology to trading in foreign currency. It is a very specialized field, but can be learned by anyone who is teachable. If a person enters this market to make profits, their present or previous career skills could or could not have any impact on their trading skills.

Another very important factor in becoming successful, is they have realized that they can and will make losses. These come just as easily as the wins in this industry. It is therefore vitally important to learn a logical and systematic method of trading. No one who is successful in forex trading just plunges headlong into it without a care in the world. They commit themselves to educating themselves on how to open trading accounts, learning about the trading platform and knowing when to trade and when not to.

Most of the successful traders started off small, generally in mini forex accounts, got as much assistance as they could from mentors who were experienced traders and learned the ropes. You will also find that they focused on only one trading method, meaning just one currency, and followed their trading plan diligently. Not one of the online currency traders who have become successful have ever started out doing this as a living. Capital has been set aside, which was not required for living expenses. This is no overnight success story, and preparation as well as understanding is key to success. - 23204

About the Author:

Before you begin online trading forex , please sign up for John Eather's fantastic ecourse and reports about Currency Trading Online. Obtain the latest information regarding forex. Go to Online Forex Trading to learn more.

Protect Yourself from Forex Scams

By Bart Icles

One can say that foreign exchange markets are similar to many other financial trading markets. There are foreign exchange quotes, buying rates, and selling rates. In foreign exchange markets, investors engage in currency pair trading. Currencies that investors usually choose to trade are those that they consider above the rest in terms of stability and value.

If you are a newcomer to the foreign exchange market, it is vital that you protect yourself from frauds. Different people from all parts of the globe engage in foreign exchange trading that it does not come as a surprise to know that frauds are able to infiltrate the market. The growing number of people engaged in foreign exchange trading also ushers in a growing number of scams that go around the financial marketplace. Nevertheless, you should not be all too worried by frauds and scams as the number of legitimate investors still outnumber shams, and these legitimate entities can always help you in your forex venture. Your most valuable weapon would be your awareness.

Hard as it is, do not get yourself fooled by high profits that come with minimal risks. High profits almost always get you subjected to higher risks. Reducing risks is entirely up to you. Staying on the safe side would not hurt. If a company guarantees you maximum profits without having to face the same amount of risks, better take caution.

Doing your homework is always to your advantage. You are better off researching backgrounds of potential brokers and taking note of the important details in every trading transaction that you wish to engage in. In looking for foreign exchange brokers, see to it that they are registered or certified brokers. If they are part of a company, their company should be registered with the government. As much as possible, stay away from inter-bank markets. Currency transactions in inter-bank markets are negotiated in a shaky network of large financial institutions and companies that give you more risks than payouts.

It is usual to come across companies that do not disclose information on their background. If you happen to find one, consider this as a red flag. Better discontinue doing transactions with them as they are most likely fraudulent companies. Also, do not even attempt to transfer cash to them through the mail or the internet.

Remember, it does not hurt to ask advice from investors who have engaged in foreign exchange trading for a long time already. Tips obtained from seasoned investors can be used for your own good and often to your advantage. - 23204

About the Author:

A forex tutorial starts with a desire to learn and a drive to become a great trader. Learning with a forex trading tutorial takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Managed Forex Accounts - Keeping Your Investments Safe

By Bart Icles

Before you commit your valued financial resources in a managed Forex account, it's best for you to do some basic research first about the Foreign exchange market. Taking time to orient yourself to some of its basic principles and strategies will not guarantee you a sure fire way of making profits, but will instead teach how to make better and wiser trade transactions that will greatly influence your money making success in the market industry.

Foreign exchange or FOREX, is currently the world's most liquid financial market, but also the most volatile. It has a daily turnout of about 1 -3 trillions of dollars a day in a worldwide scale. The business of FOREX revolves in the buying and selling of foreign currencies with another party in exchange for another one. It has its origins way back in the 70's with trading limited only to banks and large financial institutions. As technology rapidly progressed through the years, so did the evolution of the FOREX market paving the way for online trading to be possible. Today, ordinary investors can gain access to the FOREX through managed FOREX accounts.

A FOREX managed account in simple terms is Foreign exchange made easy. Managed FOREX accounts is one viable and often practiced option preferred by potential investors to the market who are either new or experienced, who want to get most out of its high liquidity and profitability but don't have the necessary time or patience to commit to it in a full capacity.

The process of investing in managed foreign accounts starts with a valid assessment of how much resources should be put in. Once this is arrived at, the task of searching for a FOREX manager to suit the range of the chosen investment. Looking for such entities shouldn't be a problem to ponder on considering the current listings available on the Internet. With a managed FOREX account, trade deals, transactions, and other FOREX datas, news and relevant updates will be in their able hands wherein any trade transactions are done in a professional manner to protect the investments of clients.

The investments being handled in a FOREX managed fund are quite safe in the hands of these legitimate and professional companies, and can be checked and withdrawn should the investor choose to do so without any questions being asked. Its a more profitable way of doing business in the Foreign exchange market that has been done by numerous individuals.

Trading in the currency market might not be as successful without the aid of an expert money manager. Do the smart thing - invest in a FOREX managed account if you are seriously contemplating investing your time and resources to the market. - 23204

About the Author:

Managed forex starts with a desire to learn and a drive to become a great trader. Learning mini forex trading takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

What Reasons are there to Invest In the Stock Market?

By Gilbert Stockton

The stock market is one of the most popular forms of investment for investors. If you don't invest yet, you might be wondering why someone would put money in the stock market. The truth is that there are a number of reasons to invest in the stock market. Let's look at a few of the best reasons that you might want to invest.

The stock market is a very valuable tool to people who want to save for retirement. The stock market can be risky in the short term but for many years your risks are cut substantially. This is why many young people choose to invest in the stock market.

When you start early it is a lot easier to turn a huge profit for a small amount of money. See the example of investing into Google and now what it is today.

Another reason that someone would want to invest in the stock market is for a career. You don't have to wait until you're retired to reap the benefits of your work. Many people, called "day traders" make a living out of buying and selling stocks every single day. They make multiple trades every day and make their living off of the daily fluctuations in the stock. They aren't in it for the long haul. Instead, they are there to make the quick dollar off of the market "ups and downs".

If a day trader makes a few mistakes he could likely be looking at losing a lot of money. Just like gambling at the casino a day trader takes his chances at losing or winning.

The stock market can be very exciting to invest in. Your stocks will constantly be going up and down and this makes people really enjoy watching the market. - 23204

About the Author:

Learn How To Buy Penny Stocks with the best Penny Stock Software.