For a few months, forex got even more popular as, forced by the lockdown, many people were looking for alternatives to earn an extra buck. Sure, it can be a bit difficult to start, but as long as you know the basics, you will begin learning in no time.
Speaking about the basics, some of the first things you should learn about is which are the forex pairs that bring the most profit. After all, this is why you started in the first place, right?
What are my options?
First thing first, you will see everybody talking about the USD/GBP pair, also known as a Major. This means that it’s also very predictable, compared to other ‘exotic’ pairs, as emerging economies are prone to shocks, thus making them less appealing. Also, they are the least liquid!
Major pairs are in high demand, meaning they are the most liquid. Minors, on the other hand, which don’t include the USD, also maintain some liquidity, while the currencies they comprise, like the Euro or the Swiss franc, represent some strong systems.
What should I choose?
Usually, most traders begin with Majors as their default choice. And it’s simple to understand why: such pairs maintain strong connections to the economies usually covered by the media.
The USD is, after all, the main reserve currency, being used for most international transactions, adding liquidity to any pair. Even more, Majors have been always associated with improved trading conditions.
Still, there’s one aspect we need to mention: Majors are not always the most profitable, as losses aren’t excluded. Therefore, we can say that there’s no such thing as an ideal pair, even though a lot of beginners opt for USD, GBP and EUR. It is up to you to identify the lucrative entry, but also the exit points for each position.