Currency pairs are not equal, as some groups are traded much more than others, so the main pairs are on the throne of these currencies, which are currencies that are traded all over the world against the US dollar, whether it is a base currency or a counter currency, and the other party is one of the currencies of the major industrialized countries, which are the countries of the euro area, Japan, Britain, Switzerland, Canada, Australia, New Zealand.
The four main and most popular pairs are:
Euro vs US Dollar EUR/USD
US Dollar vs Japanese Yen USD/JPY
British Pound vs US Dollar GBP/USD
US Dollar vs Swiss Franc USD/CHF
Boycott pairs are among the major currency pairs, but they do not contain the US dollar, and they are:
British Pound vs Japanese Yen GBP/JPY
Euro vs British Pound EUR/GBP
Euro vs Swiss Franc EUR/CHF
Minor currency pairs are a group of lesser-known pairs in the financial markets, and these pairs are for many not ideal for trading, and the volume of trading on these pairs is much lower compared to major pairs such as:
US Dollar vs Polish Zloty USD/PLN
British Pound vs Singapore Dollar GBP/SGD
Turkish Lira vs Japanese Yen TRY/JPY
The trading platforms you use have a large number of currency pairs available for trading and some may look unfamiliar and look closer to heterogeneous groups of currency symbols, in general, the base currency pairs are characterized by trading volumes and higher liquidity compared to non-famous pairs and according to your nature as a trader you may be looking for volatile pairs or seeking to escape them, if your strategy involves trying to catch major trends then you will look for currency pairs that take clear paths most of the time.
If you are good at seizing profits in the markets, this feature may not be a necessary condition for you, the only thing you should stay away from in any case, regardless of the preferred trading method, are turbulent markets that are usually accompanied by a large number of false signals.
Are there some couples better than others?
Each currency pair has a unique personality and changes over time, i.e. a currency pair that made you profit in one month or year may incur losses in the next month, and a pair that performs well on one timeframe may not perform the same on another and even actual results change over time.
How do I choose the right currency pair?
Start working by observing a variety of currency pairs and try to familiarize yourself with their unique characteristics at the present time and you can also see their historical data to know the nature of the pair's behavior in the past, after this step you can start testing the previous performance "backtest" for currencies that seem promising and valid for inclusion in your own trading system, but it must be understood that it is possible that your strategy will achieve good results on one pair while failing with other pairs and these relationships may change Completely over time.
Some Forex traders prefer to stick to one or several currency pairs all the time to keep things simple, while others prefer to trade a large number of pairs according to the prevailing conditions in the market and the suitability of these pairs for the available opportunities, the trade-off between these two approaches depends on your personal style and how comfortable you are dealing with certain pairs, and the decision in this case is determined by the suitability of the currency pairs chosen for your trading strategy.
The backtest provides a good starting point for choosing which currency pairs can be tested on a demo account, noting that the changing nature of the market necessitates a return to past performance tests now or in the future, and you may also need to find a way to include these changes in the real-time trading plan while testing on the demo account.
Either way, you'll have to achieve positive results during the beta testing period, and make continuous profits over several consecutive months, regardless of the currency pairs you intend to trade, as a key stage before moving to real trading on any of them.
In short, the best currency pairs for trading are currencies that you can profit from by trading and have less chances of loss, which have high liquidity, as well as know the best time to trade through, and you must know the information of the currency you will trade.
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Forex