There are several major currency pairs that are traded in the Forex market. The US dollar is traded against the HK dollar, a major currency pair. Hong Kong was the focus of many protests in 2019, particularly around the introduction of a Fugitive Offenders Amendment Bill. As a result, the HK dollar was volatile throughout the year. But, the protests were largely in vain – and the HK dollar remains one of the most popular currencies on the Forex market.
In order to trade on these pairs, you must follow economic news, announcements, and other valuable information. You should also be aware of the interest rates in the countries where the currency is based, since they affect the overall value of the currency. For instance, if you’re trading on GBP/USD, you should pay attention to any news on the UK, as it could lead to a rise in interest rates or a fall in unemployment. These factors can significantly affect the value of the pound.
EUR/USD is the largest currency pair in the Forex market. Its price fluctuates frequently, and is regarded as the most volatile pair in the world. Due to this, it’s easy to make huge profits on this pair, but you can also suffer great losses if you trade it incorrectly. Because of its volatility, this currency is popular with day traders. Traders usually use this pair to take advantage of price fluctuations.
Besides the US dollar, the other two most popular currencies are the Japanese yen and the European pound. Both are the most popular and liquid currency pairs in the world. Because of the volatility of the EUR/USD currency, it’s impossible to ignore this pair. In fact, it makes up about 20% of all Forex trades. But how do you trade the EUR/USD? This article will help you understand how major currency pairs work.
To learn more about how these currencies move in the Forex market, let’s look at some common examples. The EUR/USD exchange rate shows how the euro has strengthened against the US dollar. In other words, the EUR/USD price moves are a clear indication of the current balance of power. The currency’s bid and ask price are always listed in two decimal places on the Forex market. These two figures will help you determine the amount of profit you’ll make from any given trade.
In order to trade the currency pairs, you must first understand the spreads. Forex brokers quote the price in pairs, or one currency is the base currency and the other is the quote currency. The EUR/USD exchange rate is 1,38, meaning that one EUR is worth $1.38. The spread between the bid and the ask price is called the spread. In Forex, you can buy and sell the base currency by using the buy or sell price, or buy and hold the variable currency in anticipation of a weaker or stronger base currency.
There are four basic types of Forex currency pairs. The most popular ones are called major pairs. Their price bands are much narrower than the major ones, and they are subject to market volatility. In this way, they are easier to trade in. For example, the Euro/USD pair is traded for the US dollar. The nickname for this pair is “fibre”.
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