Which Forex currency to trade?
Currencies are traded as pairs, and the movement of currency pairs measure the value of one currency against another. For instance, the EUR/USD currency pair measures the value of the Euro against the US dollar.
When the value of the pair increases, this means the value of the Euro has increased against the value of the US dollar. When the value of the pair decreases, this means the value of the US dollar has increased (or the value of the Euro has fallen).
By trading Forex and CFDs, traders can make a profit off of these currency movements.
Forex currency pairs are classified as majors, minors, and exotics.
A Major Currency pair is one that contains any one of these currencies paired against the US dollar, such as the EUR/USD, USDJPY or the GBPUSD.
Forex Minors Currency pairs made up of these major currencies that don’t include the US dollar. These pairs include EURGBP, EURCHF, AUDNZD, and so on.
Exotic Currencies are any currencies that we haven’t already mentioned, such as the Hong Kong Dollar (HKD), the Norwegian Krone (NOK), the South African Rand (ZAR) and the Thai Baht (THB). Exotic pairs include one exotic currency and one major currency.