currency pairs represent the quotation of one asset against another. Generally, they express the amount you are willing to pay in one currency for another. If the value or currency rate changes, it becomes different against another currency as well.
While trading is one of the most accessible and highly-traded markets, we will discuss some of the most popular and major currency pairs to trade in 2022.
As you know, all currency pairs are divided into several groups. They include major, minor, and exotic pairs traded across the globe round-the-clock. However, from the trading strategy perspective, investors can identify some other types of assets that can also be involved in trading.
Major currency pairs are the most popular and traded instruments. They generally offer enough volatility and stability at the same time. Besides, these instruments are the world’s strongest economies. That is why they are traded in high volumes. With higher volumes come smaller spreads.
Here are the top 3 major pairs to trade in 2022:
Judging by the name, commodity pairs extremely depend on the commodity price. Generally, commodity pairs include such assets as Australian Dollar (Aussie), Canadian Dollar (Loonie), and New Zealand Dollar (Kiwi).
Here are the top 3 commodity currency pairs to look for in 2022:
While these currency pairs are also very popular among traders, we should never underestimate the role of central banks involved. The slightest change in the monetary policy can lead to growing or dropping interest rates and currency prices.
Cross pairs form another category to look for in 2022. It does not matter what currency you target; the pair must not include USD.
Here are the most popular cross currency pairs to trade in 2022:
Beginner traders should be well aware of all risks when getting started with trading. What's more, investing in commodity and cross pairs may come with greater risk, as their exchange rate and value are harder to predict compared to major pairs.
trading requires focus and discipline. It does not matter what concept or strategy you use; the following tips will let you start with minimum risk.
Experts recommend starting with some liquid currency pairs, for example, EUR/USD. The next stage is to generate as much data about the asset as possible via technical analysis and indicators. The main goal is to clarify what exactly moves the asset price.
Next, one needs to determine the most appropriate leverage. Beginners tend to wipe out their accounts right at once. To avoid this mistake, you should never use excess leverage.
Make sure you have a well-organized strategy. It will let you keep disciplined and focused on what you are doing. The strategy must involve risk and money management tools, a trading plan, and many other crucial factors to take into account.
The next stage is to select the best-matching timeframe. That will mostly depend on the strategy you apply. Last but not least, traders should make the most of their online brokers and use the instruments they deliver including news, market insights, educational materials and many other resources to bring your trading to a new level.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.