The most traded currency pair is the EUR/USD. Currency pairs are categorized into three categories: majors, minors and exotic currency pairs. The Major currency pairs are all the major currencies; the British Pound, the Japanese Yen, The Swiss Franc, the Euro, the Australian Dollar and the New Zealand Dollar and are all paired with the American Dollar. The America Dollar is the most traded currency pair in the world and that is because it is paired with all the majors and most of the exotic currency pairs. The major currency pairs are amongst the most currency pairs that is traded.
The minor currency pairs are the major currency pairs paired against each other, opposed to being paired with the American Dollar. These are pairs like the EUR/JPY and GBP/JPY. Exotic pairs are currency pairs that are less mainstream and often than not, are very expensive to trade. Exotic pairs are pairs that are created by pairing the American Dollar with the currency pair of a developing country. A prime example of an exotic currency pair is the USD/ZAR.
So now that we have covered the basics you might be wondering which currency pair is the most profitable and the best currency to trade. If you are a beginner, you have to take caution. The currency pair that I highly recommend is the EUR/USD because it is the most traded currency pair and there is a lot information and readily available analysis on the currency pair. The next currency pair that I recommend is the GBP/USD. This pair is really great for beginners because it usually trends really well which gives you a good opportunity to catch long trends and make a lot of money. Have a great strategy that can help you catch long trends. I have plenty more strategies to share with you that have proven to be successful.
Just a quick background on why I have so many strategies. This is because I recently started to venture into developing trading algorithms and quantum trading (a discussion for another day). Part of the job is to use a test to evaluate certain circumstances and data and use the best proven theories to build an algorithm based on that. (this is also how I got into coding, anyways that too is a story for another day). So to sum it up I have a lot of proven strategies and will be sharing a new one every time our Facebook page gets a 1000 likes.
Back to the main topic, currency pairs. I am sure you would like to know which one you should stay away from? Anything with the Japanese Yen. If you are beginner, I do not advise trading the Yen because it requires a different set of skills that go beyond the scope of the beginner and this is simply because the Yen can jump literally 1000 pips in the other direction with no warning and the best way to tame it is with an indicator called the Ichimoku indicator. Another currency pair I highly recommend beginner to avoid is the USD/CAD. This currency is correlated to oil prices so if you are not interested in monitoring oil price movement and oil indices I highly advise that you stay away.
What about our beloved USD/ZAR? This is literally rated one of the most volatile currency pairs and with that being said I don’t recommend it for beginners. However, I do recommend that you give it a try in a demo account because, as I have said several times before, volatility is not always a bad thing. I love the USD/ZAR and with a bit of practice you will be able to find a pattern in the all the madness and see the potential for big earnings. But beware, the USD/ZAR is an exotic pair and therefore costs more to trade than the majors.