Traders Money

The big currencies in most people’s estimation are the US dollar (USD), Euro (EUR), yen (JPY), pound (GBP), Swiss frank (CHF), and the Canadian and Australian dollars (CAD and AUD). So there are 6 major pairs where USD is combined with any other of the majors. Cross pairs are those not including USD, eg CBP/CHF. The exception might be that a broker will offer the currency of their own country at reasonable rates even if that currency is not a major. So that you can trade any major pair or cross of the majors but unless you have reasons for doing otherwise, most beginners are suggested to start with EUR/USD for many trading. This is the highest traded pair giving it a bunch of benefits. First, there’s a lot of competition between brokers so the spread is usually lowest for this pair. Second, the high liquidity implies there will probably be less slippage, and you are likely to get the price that you see on screen. 3rd, foreign exchange stories alerts have a lot of reports about these currencies so you are not so certain to get caught out by astonishing news.

If you are using an expert advisor or currency trading robot, on the other hand, it could be set up for other pairs. That will not work so well on any but the commended pairs, so those will be the best foreign exchange pairs for an expert counsel.