The EUR/USD currency pair has the highest order flow and thus the best liquidity in the entire forex market. You need not be afraid of possible slippage (with few exceptions), and your trades will always be executed immediately. Also, trading of EUR/USD currency pairs will typically have a 2/28/ · The GBP/JPY pair is a good choice for experienced binary options traders and is very volatile, more so when the Japanese government publishes new economic data which results in uncontrolled movement in the currency values. The GBP/USD is a stable currency pair with good liquidity and movements, especially for blogger.comted Reading Time: 3 mins The GBP/USD is also a very solid currency pair for beginners to the binary options trading arena. Here you will find very good liquidity and very good movements. The GBP/USD is slightly more volatile than the EUR/USD, but not as volatile as trading the GBP/JPY currency pair
Currency Pairs Popular in Binary Options Trading
Before you begin to trade binary options with currency pairs as the underlying financial instrument, it is important that you understand the main types of currency pairs and their trading implications. Broadly speaking, currency pairs are split into two categories: majors and crosses. The 6 major currency pairs are the What are the best currency pairs to trade binary options, GBPUSD, USDCHF, AUDUSD, USDJPY, and USDCAD.
Because of their popularity, the major currency pairs have highly liquid markets that trade 24hrs a day every business day. The high liquidity of the major currency pairs also means that spreads are extremely narrow. It is also worth noting that there is no official definition of a major currency pair; some people consider as few as 4 currency pairs as majors while some consider up to 8 or more, what are the best currency pairs to trade binary options.
In this case, the currency that appears first is the Pound, and this is known as the base currency while the US Dollar is known as the quote currency. Currently, what are the best currency pairs to trade binary options, the GBPUSD rate is about 1.
All other currency pairs not in the majors category are known as minors or crosses. By definition, all currency pairs that do not involve the US Dollar as either the base or quote currency are crosses.
While by their very nature the market for crosses is less liquid compared to the majors, within the crosses category there are some pairs that are more popular and liquid than others. These are typically crosses involving the following currencies: EUR, JPY, GBP, and CHF.
Within crosses there is also a sub-category known as exotics; these are usually non-Western currencies involving, for example, the Mexican peso, Turkish Lira, Thai Baht, Singapore Dollar, and Hong Kong Dollar.
These exotic currency pairs have less liquid markets and thus higher spreads. Perhaps the most watched event in currency trading is the decision by the Federal Reserve on the interest rate. This was seen recently in December when the Federal Reserves raised interest rates, leading to appreciation of the US Dollar. It is also important to note that much of the currency movements occur before the official economic release itself, as most people have a good idea, or at least think they have a good idea of what the official economic release is going to be.
Of course, if the market has incorrectly predicted an official economic release, then major movements post-release will often follow. When it comes to binary options, it is more important to understand the basic characteristics of the major currency pairs first before delving into the crosses.
Hence, as a beginner, it is wise to familiarize yourself by trading the major currency pairs first. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website. Choosing A Currency Pair To Trade Binary Options — Majors or Crosses?
No Comments. Currencies — Majors and Crosses Broadly speaking, currency pairs are split into two categories: majors and crosses. Trading the Majors and Crosses When it comes to binary options, it is more important to understand the basic characteristics of the major currency pairs first before delving into the crosses. Here are some basic correlations between the 6 major currency pairs to get you started: EURUSD — Known as the Euro Dollar, this pair is often positively correlated with the GBPUSD pair and negatively correlated with the USDCHF pair.
The reason for this is because the Euro, what are the best currency pairs to trade binary options, Pound, and Swiss Franc, being all European currencies, tend to be positively correlated. Again, this id due to the positive correlation between the Euro, Pound, and the Swiss Franc. Also important to note: the Swiss franc is often considered a safe haven currency by traders in times of political unrest. Another reason is that the Aussie and Canadian dollars are positively correlated due to both currencies being commodity block currencies, meaning that their economies, and hence their currencies, are highly commodity-based.
This pair is also very sensitive to East-West political sentiments. Recommended Brokers: Min. Invest Min. Deposit Max. Leave a Reply Cancel reply Your email address will not be published. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More. Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website.
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, time: 10:04Choosing A Currency Pair To Trade Binary Options – Majors or Crosses? – 7 Binary Options
Here is a list of the most popular binary option trading currency pairs. You can start trading binary options over currency pairs by opening a new account from a binary option broker. AUD/USD. The exchange level of the Australian Dollar and the United States Dollar. EUR/GBP. The exchange level of the Euro and the British Pound. EUR/JPY 2/28/ · The GBP/JPY pair is a good choice for experienced binary options traders and is very volatile, more so when the Japanese government publishes new economic data which results in uncontrolled movement in the currency values. The GBP/USD is a stable currency pair with good liquidity and movements, especially for blogger.comted Reading Time: 3 mins The EUR/USD currency pair has the highest order flow and thus the best liquidity in the entire forex market. You need not be afraid of possible slippage (with few exceptions), and your trades will always be executed immediately. Also, trading of EUR/USD currency pairs will typically have a
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