12/10/ · Generally speaking, the most profitable currency pairs are the EUR/GBP, USD/JPY, and GBP/CHF. Others are quite popular as well. However, most traders who trade forex trading utilize a mix of the top currency pairs as well. When most people think of investing in the foreign exchange market they think of buying and selling particular currencies 9/28/ · For example; GBP/USD, GBP/JPY, and USD/JPY are among the most volatile pairs but they have high liquidity and low spread, compare to their volatilities. In conclusion, as long as exotic pairs are the most volatile currency pairs and have the least liquidity, therefore, they have the largest blogger.coms: 7 12/11/ · The Most Volatile Currency Pairs Table. The table shows that today the most volatile Forex pairs are exotic ones. Namely, USD/SEK, USD/TRY, and USD/BRL. All of them move on average for more than points per day. The volatility of the major currency pairs is much lower. Only GBP/USD moves for more than points per blogger.comted Reading Time: 4 mins
Which Currency Pair Is Most Profitable in Forex (Not What You’d Expect)
You are probably familiar with the concept of "volatility". If not, we recommend you to get more information on the subject before reading article Volatility Explained in Simple Words. Here we will talk about the most volatile currency pairs in the Foreign Exchange Forex market in If you have ever traded in the Forex market or at least watched price movements from the sidelines, you might have noticed that the prices move non-linearly on the chart. There are times when the currency price stands still or moves within a very narrow range.
In this case, we talk about the low volatility in the market. On the other hand, when key economic data are published or officials make a speech, the market price makes sharp and strong movements. So, here we can see an increase or even a spike of volatility.
All you need to do before you start using the tool is to enter the period in weeks, over which you want to measure the volatility. US dollar as an example. On the website, mentioned above, we select the four weeks to calculate the volatility.
The results are displayed in three diagrams:. They also show an average weekly, daily and hourly volatility of the pair, which currency pair is most profitable in forex today. It fully coincides with the time of economic data releases for the USA and New Zealand. It also confirms the thesis on volatility increase upon major economic data releases mentioned at the beginning.
Volatility changes can be observed for all currency pairs. You can select any pair and see the statistics over different periods. The main reason for the volatility is liquidity.
A classic rule states that: the higher the liquidity is, the lower is the volatility, and vice versa. Liquidity is the amount of which currency pair is most profitable in forex today and demand in the market.
It means that the larger the supply and demand are, the harder it is to get the price moving. According to that rule, we can conclude that exotic currency pairs are the most volatile ones in the Forex market because their liquidity is often lower than that of major pairs.
Volatility often occurs during major economic data releases as well, so it may be useful to download and install MT4 news indicator :. The table shows that today the most volatile Forex pairs are exotic ones. All of them move on average for more than points per day. The volatility of the major currency pairs is much lower. Based on these statements, the reader may conclude that trading the exotic currency pairs or cross rates promises large profits.
However, such high volatility is a result of low liquidity, and trading the low liquidity currency pairs carries particular risks for a trader. The fact is that various methods of technical analysis might not work in such situations. Also, technical analysis patterns might generate false signals. This is because the psychology of the market behavior in its most liquid form makes up the backbone of technical analysis.
If the liquidity of a trading instrument is lower, the validity of technical analysis comes under question. The second problem a trader can face when trading the volatile financial instruments is a wide spread additional trading expenses. Of course, we won't discourage you to trade the low liquidity currency pairs. However, our task is to warn inexperienced traders and newbies that the risk of such trading is higher than that of trading the classic currency pairs.
January 7, We should note that by definition, volatility tends to change over time and is not a constant, which currency pair is most profitable in forex today.
Volatility Is Relative If you have ever traded in the Forex market or at least watched price movements from the sidelines, you might have noticed that the prices move non-linearly on the chart. Based on all three diagrams we can conclude that volatility tends to change during any period.
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Forex: What Are The Best Pairs To Trade With A SMALL Account?
, time: 9:1810 Most Profitable Currency Pairs to Trade in Forex
12/11/ · The Most Volatile Currency Pairs Table. The table shows that today the most volatile Forex pairs are exotic ones. Namely, USD/SEK, USD/TRY, and USD/BRL. All of them move on average for more than points per day. The volatility of the major currency pairs is much lower. Only GBP/USD moves for more than points per blogger.comted Reading Time: 4 mins 9/28/ · For example; GBP/USD, GBP/JPY, and USD/JPY are among the most volatile pairs but they have high liquidity and low spread, compare to their volatilities. In conclusion, as long as exotic pairs are the most volatile currency pairs and have the least liquidity, therefore, they have the largest blogger.coms: 7 10/20/ · EUR/USD as low as with fixed $5 commissions per , Powerful, purpose-built currency trading platforms. Monthly cash rebates of up to $9 per million dollars traded with blogger.com’s Estimated Reading Time: 8 mins
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