The Seven Most Traded Currency Pairs
One of the more remarkable other forms of trading on the foreign exchange, or forex, markets is binary options trading. With binary options, traders can create time-bound wagers on predetermined values of the underlying assets, which could be forex, stocks, or indexes.
Binary options have an expiration date, a predetermined strike price, and an option premium, just like any other exchange deal. The primary distinction is the settlement price, which is contingent upon the fulfilment of the option condition.
The most often traded asset in binary options trading is foreign exchange or forex. Because forex trading has a high rate of return, 92% of traders prefer it to trading other assets or commodities.
The trader has a huge selection to pick from due to the wide number of FX pairings that are offered. Furthermore, FX has less volatility than cryptocurrencies, which facilitates trading.
However, the rate of price movement in forex is more noticeable than in equities and commodities, which enables traders to make numerous deals in a day.
Best Currency Pairs
The list of currency pairs that most traders find most appealing is as follows:
The currency pair that is traded the most globally is EUR/USD. This is definitely because each of these currencies is extremely popular on its own. The euro, which was first launched in 1999, is still the second most popular currency in the world, behind the US dollar.
Because of the market’s liquidity, price fluctuations are often constant. It is still not extremely volatile, though. During the hours of the American and European markets, it is among the best pairings to trade.
Another well-liked trading pair is the US dollar and Swiss franc pair. The price fluctuations are not as significant as they are in the EUR/USD pair, though.
The main reason for this is that the euro is more widely used than the Swiss franc. However, it benefits from the US dollar being a part of this pair. The USD drives the volatility of the pair and stabilizes it overall. Additionally, this pair is excellent for trading during European and American market hours.
It is well known that the GBP/USD and EUR/USD pairs frequently trend in the same way. Overall, they also show a rather strong association. If your EUR-USD trading is not performing as you had hoped, you should explore GBP-USD as a suitable substitute.
Furthermore, as GBP-USD and EUR-USD have comparable market liquidity and volatility, you can choose them if you are having any technical issues or minor setbacks with the former.
EUR-JPY And GBP-JPY
It’s commonly known that the GBP-JPY and EUR-JPY pairs follow their support well and make excellent trade settings. They also have a track record of low volatility, which increases trading profitability.
Trading in the European and Asian markets is a great option for both of these currency pairings. When the Japanese yen session gets underway, they are an excellent trading partner as well.
Although it is not as volatile as other USD pairs, USD-JPY is still a wise pick if you want to trade in the Asian market. If you feel more at ease trading in the evening and you are a resident of the United States, you can also go for it.
Since the USD and CAD are both North American currencies, their activity and strength would peak during the hours when the North American session is in session. When trading in that particular market, they would be the best option.
One of the most widely used trading pairs globally is AUD/USD. The pair’s difference from other forex pairs drew traders in the most.
However, because of the current global economic uncertainty, this has diminished recently. Trading this pair in the Australian and US markets is a wise decision.
The proper method to select an asset or a currency pair to trade is to examine the binary charts that illustrate market trends and historical data to make an accurate prediction.
Which market has the best time for you to execute your trade?
A variety of foreign currencies are available in binary options, and each one is active in a different time zone and in a different location. The primary factor dividing the marketplaces is the continent.
You can never go wrong with trading assets in the European currency or pairs that either contain the U.S. dollar (USD) or the Canadian dollar (CAD). This is especially true if you find that the European market hours or the U.S. market session coincide with each other.
If you would rather trade outside of U.S. market hours, search for pairs that contain the Australian dollar (AUD) or the Japanese yen (JPY). A set that included both of them would be ideal!
The approximate opening and closing hours of each continental market are as follows:
Asia Pacific Market Hours: 11 p.m.–8 a.m. GMT
European Daylight Time: 7 a.m.–4 PM GMT
Sessions for North America: 12 PM to 8 PM GMT
Currency pairs comprise the most traded asset in binary options trading, still being forex. Among these, EUR-USD, USD-CHF, GBP-USD, GBP-JPY, EUR-JPY, USD-CAD, and AUD-USD are the most traded pairs.
Because of where the currency pairings stand in their separate continental markets, ratings for the pairs are typically varied. You have to know when to trade in each market to be able to trade between these pairs successfully.