Currencies are highly popular with binary options trading. Since the values are constantly fluctuating and trading is done in pairs, it’s easier to make educated predictions. Since there are numerous pairs to trade, finding the most popular currencies to trade is often difficult, especially for beginners. The key is to choose currencies from the major global markets, which fluctuate the most.
The Top 8 Currency Pairs To Trade
If you’ve worked with currencies before, you already know currency trading involves pairs. This means the value of one currency is based upon the value of another. Not only does the trader need to understand one currency, but both in order to enter into profitable bids. Luckily, binary options trading makes this a little easier as you only need to determine whether values will rise or fall versus trying to buy or sell.
Most traders prefer to work with the following eight currency pairs:
- USD/CAD (United States / Canada)
- EUR/USD (European Union / United States)
- USD/JPY (United States / Japan)
- EUR/JPY (European Union / Japan)
- AUD/USD (Australia / United States)
- USD/CHF (United States / Switzerland)
- AUD/EUR (Australia / European Union)
- CHF/JPY (Switzerland / Japan)
As you’ll notice, several currencies tend to repeat such as USD, EUR and JPY as their markets often cause major fluctuations on other currencies throughout the world. While you can obviously trade with other currency pairs, the most action occurs with these pairs.
Top Reasons To Trade These Currencies
The most popular currencies to trade have one thing in common – they all represent key global markets. This means you’ll see the most fluctuations and have an easier time predicting currency values. These pairs also have the most effect on each other, meaning it’s easier to determine how actions in one country will affect another.
Political and economic actions in these areas typically have a ripple effect around the world. If one major currency value changes, it serves to reason other major currencies will change as well. With other pairs, the changes could be so small that it’s hard to make the right bids. With these currencies, fluctuations are usually more predictable and larger.
Plus, you’ll easily find economic and political news on these countries and areas. This makes market analysis much simpler, especially if you’re new to binary options trading. Even experienced traders prefer these currencies to help increase profits.
Once you’re used to market trends and understand how currencies affect each other, you can start experimenting with other pairs. Think of these pairs as your foundation to build upon. Odds are, you’ll still see at least one of the currencies in most pairs you trade.