Traders often become very confused when just starting out in the Forex market, as they find themselves jumping from one pair to another, searching for the ideal currency pair to trade. Others tend to give up too quickly, as they are unable to find answers to a few simple questions.Have you ever asked yourself the following questions?
- Which pair should I trade?
- What should I buy?
- What is the best time to trade?
The Forex market is a complex market, which allows traders to take advantage of its 24
hours trends.
The Euro was introduced as an electronic currency on January 1, 1999. At this time the Euro replaced all the pre-EMU currencies, except Greece’s currency, which was converted to the Euro in January 2001. As a result, the EUR/USD currency pair is now the most liquid currency in the world and its movements are used as a primary tool to gauge the health of both the European and U.S economies.
Some of the advantages of trading on this pair include:
- 24 hour constant movement
- Tight spreads due the market’s liquidity
- Presents orderly trends
- Rarely gaps
By taking a quick glance at the EUR/USD chart above, you can quickly understand why this pair has become the most popular currency pair, due to its predictable long trends and smooth price movements.
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