If you select currency assets trading then your choice will always pay for itself. That is because currency pairs are the most volatile assets and changes in their exchange rates are the easiest to predict. This is one of the most important factors that help a trader to profit from trading.
However, there are a lot of currency pairs that make it important to decide which of them you are going to trade at first. There are several general recommendations for novice traders although every trader will exercise his freedom of choice which depends on his individual style of trading. General recommendations are as follows:
In light of the above it makes sense to select those currency pairs which are regarded as majors amongst all traders, namely:
You will see that dollar is the secondary currency in the first two pairs the primary currency in the last two pairs. What this means is that if you place a EUR/USD call option and bet on a rise in prices then you hold the opinion that euro is going to rise and dollar is going to fall. If you place a USD/CHF call option then you expect that the exchange rate for the dollar must rise and the exchange rate for the franc must fall. As a rule however a chart displays the cross rate of two currencies so if the currency pair rate rises for a call option then you will win the option for a rise of the same currency pair.
What special features do these currencies have? What should you remember when trading these currencies?
It is the most actively traded and one of the most available and understandable currency pairs for traders. This arises from the fact that it is a stable currency pair as it reflects the current state of the economy of, not only one country (as in the case of yen, for example) but a group of countries which is a rather more reliable factor. The Euro is most actively traded during the European trading session from 9h00 to 18h00 (Moscow time). It is a very convenient time for Russia-based traders.
The European currency has the characteristic of being rather clearly and accurately forecast. As a rule (if the European countries don’t suffer severe collapses) the currency doesn’t fall sharply but even if natural disasters or state upheavals occur in some countries of the European Union, the euro will not fall as sharply as other currencies do because European countries support euro through joint efforts. That’s why; the euro might be rated one of the most comfortable currencies for trading.
The British pound sterling is analogous to the 19 century’s dollar. Namely, the dollar was considered to be the most stable currency. People preferred to keep their savings in the currency. Down to the present time pound sterling remains one of the strongest currencies not substituted by the euro because they have a great weight and volatility.
Trading in the currency pair is the most active from 16h00 to 18h00 (Moscow time). This is because the European session is not closed yet and the American session is already open at this time. The British pound is actively traded on both the European and American markets and buying and selling activities reach their peak within the specified hours. Due to the stable English economy the pound sterling doesn’t have sharp fluctuations so traders can rely on technical analysis and more likely predict events.
Switzerland as a whole and the Swiss franc, in particular, has always served as a model of stability. People have always invested their money in Swiss banks and Swiss currency if they wanted to be confident in its safety for a long period of time because even during severe collapses (including world wars) the exchange rate for the franc didn’t change significantly. That is all well and good but for options traders, the stability of the franc means low volatility or a weak trend toward currency movement. However during the European trading session the franc comes to life and it is a good time for you to attempt trading the asset.
If any major cataclysms occur in the world then the exchange rate for both the franc and gold begin to rise.
The Japanese Yen began to gain its weight after the…
The Japanese Yen began to gain its weight after the Second World War due to the well coordinated work of the Japanese government and Japanese companies. Now it is one of the strongest currencies in the world. Trading the yen can yield good results but the currency has a few specific features that need to be taken into account.Firstly, the highest buying and selling activity of the yen falls not during the European session but during the Asian session which is from 3h00 to 13h00 (Moscow time).
Secondly, the exchange rate for the Japanese currency is not absolutely free and is determined not only by the markets but also by the Central Bank. This means that it allows for possible spikes in its price but changes occur rather rarely which affects the level of trading of binary options traders.
Thirdly, since the yen is not the European currency, it tends to mirror the Euro and the Dollar quotes. If the Euro or Dollar prices fall then yen’s price will likely rise.
The first two options (the euro and the British pound) are considered to be the most appropriate ones for traders who have begun the market recently. It is recommended that you become familiar with these assets if you are beginning to trade.
Спасибо за регистрацию в компании CT Trade.
Через 2 минуты (возможно и раньше) Вы получите письмо, в котором Вам необходимо подтвердить свой e-mail. Если в течение этого времени Вы не получили письма с подтверждением, то возможно, оно попало в папку со спамом. Пожалуйста, проверьте содержимое этой папки.