what is a currancy pair
A forex currency pair works by showing the value of one currency compared to another. When you trade a currency pair, you are buying one currency and selling another at the same time.
How It Works (Step-by-Step):
1. Understanding the Pair
Example: EUR/USD = 1.1000
EUR is the base currency (what you’re buying or selling).
USD is the quote currency (what you’re using to pay or receive).
It means 1 euro = 1.10 US dollars.
2. Buying or Selling the Pair
If you buy EUR/USD, you believe the euro will rise against the dollar. You’re buying euros and selling dollars.
If you sell EUR/USD, you believe the euro will fall against the dollar. You’re selling euros and buying dollars.
3. Profit and Loss
Let’s say:
You buy EUR/USD at 1.1000.
Later, the price rises to 1.1100.
You close the trade — you’ve gained 100 pips (1 pip = 0.0001).
If you traded 1 standard lot (100,000 units), a 100-pip gain equals $1,000 profit.
If the price went down instead, you’d have a loss.
4. Bid and Ask Price
Every pair has:
Bid price: The price you can sell at.
Ask price: The price you can buy at.
The small difference between them is the spread — often the broker’s fee.
In Summary:
You’re always trading one currency against another.
You profit when the market moves in the direction you predicted.
You can trade both rising and falling markets.
Would you like a visual diagram to show how a trade works from start to finish?
Since the majority of trustworthy brokers offer a large selection of currencies and commodities, including gold, silver, oil, and cryptocurrency, it might be difficult for beginners to know the best forex pairs to trade You may find up-to-date information on what professional traders began trading when they were novices
The currency market is one of the largest markets in the world, and most brokers offer a very wide selection of tradable instruments (currency pairs). With the expansion of the internet and the fast advancement of modern cell phone technology, it is now possible for the working class to trade the world’s financial markets once reserved for banks and other financial institutions.
Best forex pairs to trade ? for beginners
Traders can trade three main types of currency pairs, each with its own pattern of reward and risk. Skilled traders can profit quickly from the erratic movement of miners, but they can also lose a lot of money if they do not trade properly. Experts advise novices against it because of this. The majors represent the most stable and frequently traded currencies, making them the best forex pairs for beginners. Traders typically view exotics as investments or over longer time periods where the initial cost of the trade becomes less significant, but they are most definitely not appropriate for scalping.
know what pairs move in what markets
Knowing the correlation between pairs and markets can make the difference between making a big or small profit. Not all currency pairs move at the same rate . And picking the best trading times for the currency you have selected to trade can make a difference between winning or losing. For this reason, research the market trends and times of the major movements and hold off trading until the corect time . It is a well-known fact that the markets only move about 20 percent of the time; the other 80 percent there is little or no movement . To trade successfully, make sure you identify the best times and trade them accordingly.
After consultation with over 100 professional traders, the five best forex pairs to trade that traders selected for new beginners are listed in order below:
- EUR/USD
- USD/JPY
- GBP/USD
- AUD/USD
- USD/CAD
The kind of approach you plan to employ and the amount of money you have available will greatly influence the FX pairs or commodities you choose. You can see how much it will cost to trade that commodity or currency pair by opening a demo account. this will give you a better notion of how much you’ll need to trade that asset.
comodities
oil
Oil is a natural resource that oil companies primarily use as crude oil for energy and industrial purposes. They trade it via futures contracts, ETFs, or equities of oil corporations. Examining supply-demand relationships, market trends, and geopolitical changes are all part of trading. Investors often use brokers or exchanges to execute oil deals. according to the market’s volatility at the time of trading
gold
Gold is commonly used as a hedge against inflation, and traders often turn to gold in times of market turmoil and uncertainty. Traders can trade gold by buying futures contracts, exchange-traded funds (ETFs), or mining stocks. For more in-depth information, look at the link from Investopedia on gold
in conclution
Our team of professional traders agrees that the three best pairs for beginners to start their trading with are GBP/USD. EUR/USD and USD/JPY. As a beginner, we suggest focusing on these three, and once you have a better understanding as to how the market works, look at the other choices of currency pairs or commodities available.
these currency pairs were chosen because of their relative stability which makes it easier to spot market movements. Market movements can provide valuable insights for traders, allowing them to make informed decisions and capitalize on potential opportunities. By focusing on these stable currency pairs, investors can better manage risk while still achieving significant returns. Another key factor is the amount of volume these pairs attract. Pairs that have a large traded volume in general have lower spreads and broker costs. The trading costs and spreads vary from broker to broker, but in general these pairs attract the lower costs. For that reason, they are very popular with traders using a scalping strategy.