Currencies have been available for online trading for over 5 years now. The industry grew quickly and spot forex is easily one of the most popular ways to invest online. Forex charts are sometimes difficult to understand and hard to control. There are many decisions to make when traders open positions, stop loss levels, take profit levels, entry levels, how much to invest, leftover margin to protect the positions, and on and on.
A single movement in a currency pairs are called a PIP while trading binary options. Binary options brokers have simplified trading currency pairs.
When trading currencies via binary options everything is simplified. Choosing the currency pair you wish to trade, a prediction of market direction and size of investment are the only things you need to worry about. The most commonly traded currency pairs are called Majors. Most binary option brokers will offer all major currency pairs so you don’t need to worry about not being able to trade your favorites.
We have listed the major currency pairs for you and added some general insight regarding these pairs:
EUR/USD – This one is obvious, there is not a single Forex trader who has not at least once placed a trade on this pair.
GBP/USD – Very similar to EUR/USD however this pair notoriously moves faster and market movements are 50% bigger. Market movements of 150 pips or more are not uncommon.
USD/JPY – This pair is unique in that it is normally displayed in two decimal places. After the recent events in Japan the Japanese government pumped well over 100$ billion dollars in to the market in attempts to stabilize it however after several months the price has steadily dropped.
EUR/JPY – Again this pair is similar to the pair above however movements are less predictible
AUD/USD – An excellent alternative to trade when EUR/USD movements are too unpredictable. This pair is very popularly traded in Australia as well as New Zealand.
USD/CAD – Most traders know the Canadian dollar is highly correlated with the current market prices of Oil. Because of this, this pair is very predicable.
USD/CHF – Very strong connection between this pair and the popular EUR/USD.
EUR/CHF – This pair can be compared to the USD/JPY and has very sharp movements.
EUR/CAD – Of all the major pairs this one has one of the higher spreads. It is fairly easy to predict but not as popular as other currency pairs listed above.
EUR/GBP – This pair moves very slowly and if you have a good spot forex broker the spreads are likely to be low.
EUR/AUD – The Euro against the Australian Dollar is a pair that is popular for long term trading.
NZD/USD – This pair is not actually considered a major, however when the New Zealand Dollar against the USD you can find low spreads. It is much more fun to trade because this currency pair is not heavly connected to any other pairs movements.