What Are the Best Currency Pairs for Newbie Forex Traders?

If you are new to Forex trading, there is much to learn. There are various trading styles among which are those that newbies should avoid until they have a better handle on what Forex is all about. Perhaps the best way to delve into the best currency pairs for newbie traders would be to briefly define the Forex market and then why some currencies are ‘better’ to trade than others.

Before You Get Started

One thing you will begin to understand is that although Forex trading South Africa is exactly the same as trading in any other country, there are some important variables such as the time of day the markets are open there as opposed to other markets in different time zones. That’s a huge consideration when you are trading in currencies. With that said, let’s look at what it takes to determine the best currency pairs for newbie traders.

The Majors Are Always the Safest

The first thing to learn as a newbie trader would be the eight currencies that comprise the Forex majors. These include:

  • USD – United States Dollar
  • EUR – Euro
  • CAD – Canadian Dollar
  • GBP – Great British Pound
  • NZD – New Zealand Dollar
  • CHF – Swiss Franc
  • JPY – Japanese Yen
  • AUD – Australian Dollar

As you can probably tell just by looking at the list of the eight Forex majors, they are considered major currencies because of the stability of their respective economies and the easiest to forecast future spreads. However, that is just a list of the majors but in order to trade in Forex, you need to trade in currency pairs, which could include other currencies.

Why Are the Majors Considered to Be the Safest?

Here is the most important aspect of Forex trading to understand in the very beginning. As noted, these eight currencies are considered to be the Majors and the safest currencies to trade simply because their economies are less volatile. They are among the most stable economies in the world so it’s safe to assume they will continue to be valued similarly day to day because of that stability.

Bear in mind that Forex is considered a “day market” so a day-to-day stability is a key ingredient in the Forex recipe for trading success. No matter which other currency you name in your currency pair, if you can closely ‘predict’ the value of your major in relation to the other currency in your pair, you have a chance of making money. The volatility of the market is what makes Forex both exciting and risky.

The Best Currency Pairs Usually Include the USD

Even though the global pandemic tried its best to devalue the USD, it was unsuccessful, and the USD is still considered the most stable of the majors as it is the currency most used in international trade. With that said, Forex traders typically find that the USD/EUR or EUR/USD is the best currency for newbie traders to trade because of their relatively stable economies. However, when pairing currencies in the very beginning, it is suggested that you stick with a combination of any of the two major currencies that ‘speak’ to you.

As one final word of advice, don’t forget to follow the financial news coming out of each country in terms of their economy in the world market. Forex is all about predicting movement, up or down, of each currency in a pair and that’s why the majors are thought to be the easiest and safest for newbie Forex traders to trade in.

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    Mwamona Nomba 2 weeks ago

    This is why Lungu’s immunity needs to be removed so that he can be prosecuted for serious economic sabotage. The damage Lungu inflicted on the economy in pursuit of stay in power in Aug 2021 needs punishment.
    He started by firing Dr Denny Kalyalya as governor of BOZ and brought in his drinking mate Chris Mvunga to print money for Election Campaigns for PF. Printed money to buy votes hence there was too much money chasing fewer goods and prices are skyrocketing. Used foreign currency to import luxuries like helicopters rather than import essential medicines and drugs at the hight of covid-19.
    Now Lungu has the audacity of calling other liars, including Boris.