A currency pair is a ratio of the prices of two currencies in the currency market that are part of a given pair. This concept is widely used in the Forex market to simplify trading, as when buying one currency the trader always sells another, and vice versa – when selling one currency buys another. The first currency in the pair is called the base currency and the second currency is called the quoted currency.
For example, Euro-Dollar EUR/USD. The price of this currency pair shows how much USD can be purchased for 1 EUR. By opening a «buy» warrant, the trader acquires EUR while paying USD. When the profit is recorded, the reverse transaction is made – purchase of USD for EUR. In this pair EUR is the base currency. The euro is also the base currency against all world currencies.
The decision on which currency is basic and which is quoted is made by the International Organization for Standardization (ISO). ISO also determines currency codes and their order in each currency pair.
The Forex market offers traders many tools for trading deals. One of the most popular tools is the EUR/USD chart on Forex, currently used by many traders. Forex’s online chart is not a program, so it does not require downloading and installation on a computer. You can access live chart from any computer or computer device connected to the Internet. To find out how EUR/USD is quoted, you can track it in real time at any time.
What Are The Benefits Of Forex Online Chart
The feature of this instrument is that real-time quotations of several trading assets are reflected. Traders, whose investment portfolios include several different assets, appreciate the opportunities offered by the use of live charts. One of the main advantages is the high speed of updating information, for example, the EUR/USD chart is updated at the same time when it changes. The speed of renewal is of great importance to traders engaged in aggressive trading, in which a minute delay in data can cause significant financial losses.
Advantages of using live chart include:
- The ability of the trader to respond instantly to market developments without hindrance;
- Any trader, regardless of market experience, can use the EUR/USD chart (or other pair);
- Information in graphical interpretation is easier to perceive and allows to avoid time loss with analysis flow of quotes;
- The trader can use the online chart customization features to maximize individual needs. The quote of EUR/USD online chart will show for the time period required by the trader. The simplicity of the settings allows you to easily understand even the beginning trader.
Why This Live Forex Chart Is Popular
The online chart of currency pairs is currently the most popular among traders. The tool is widely used by traders who prefer standard technical analysis or who use classic indicators in their systems. Another reason for the popularity of live charts is that the EUR/USD chart or any other can be obtained without interruption and for free. Traders use the online chart to analyze the market situation not only during transactions. Live chart data can be successfully used for forecasting.
Which Currency Is Better To Trade
The main point at the beginning of trade on Forex is the choice of currency. This is what determines the success of your actions on the exchange. In addition, the selected currency pair directly affects the volume of trading transactions, the specifics of the use of robots and automatic advisers. A total of 17 working world currencies are used, 6 of which are in demand most widely. This is easily explained by the fact that these currencies have a good level of liquidity – each of them can easily «sell» or «buy» at any time.
The best types of currencies for Forex are:
- U.S. dollar (USD);
- Euro (EUR);
- British Pound (GBP);
- Swiss Franc (CHF);
- Canadian Dollar (CAD);
- Australian Dollar (AUD);
- Japanese Yen (JPY).
From the listed types of currencies the most popular currency pairs are created, under which a large number of automatic Forex systems are adapted. On them the most common algorithms of trade on Forex are built.
When choosing a currency, first of all, you should proceed from the main currency of your deposit, it is usually the Euro or Dollar. In addition, it is important to take into account at which session of the exchange you are going to carry out trading transactions, as this closely depends on the development of the trend.
It is best used as the primary currency of your account. This is due to low spreads, and this offers additional trade advantages and significantly increases profits when trading large volumes.
This currency is also widely sought after at trade sessions of any nature, but the largest volumes in euros are present at the European Session.
It is believed that the couple brings a large income due to the high interest rate GBP – British Pound. GBP movement is correlated with the direction of EUR/USD, occasionally deviating from this course. This pair trades at the European Session.
CHF is considered a safe currency and is suitable for beginners because it is usually successful forecasts. Swiss Franc is certainly in a more active movement in European Session.
The best choice with a small deposit, as the value of the lot is only 700 American Dollars, that is, you can fully trade from 70 dollars. The Japanese Yen is certainly in a more active movement in Asian Sessions.
It is very popular in American Sessions, usually it has the greatest liquidity. The Canadian Dollar, along with the usual factors, is affected by commodity markets, where the Canadian Dollar is a rather popular currency.
This currency is popular exclusively at the Australian trading Session.
If you analyze currency pairs, note that the most demanded are EUR/USD, EUR/JPY, USD/JPY. On Forex, most trading is done using exactly these Currency Pairs.