Best Currency for Exchange – Choose a more important profit combination
So, what are the best currencies to exchange? Let’s take a look at some of the obvious items you should include in your trading and others that will allow you to catch the big profits of the great movements … […]
So, what are the best currencies to exchange? Let’s take a look at some of the obvious items you should include in your trading and others that will allow you to catch the big profits of the great movements …
There is no such better currency to exchange, because any currency will offer you opportunities, but of its best to stay with majors, because you have good liquidity and low transaction costs.
The British book, the euro and the Japanese yen against the dollar are the 3 traders should follow, but also like the currencies of basic products and follow the Australian and Canadian dollar, which are excellent for the following long-term trend .
You can also exchange foreign exchange crosses that can also offer good opportunities.
A currency cross is a pair of currencies in which the American dollar is neither the base nor the currency against the currency. For example, GBPJPY, EURJPY, EURCAD and AUDCAD are all considered currency crosses and you can of course choose.
If your broker does not offer you the desired cross on the trading platform, you can simply create a synthetic pair. Let’s say you want to go long the pound sterling against the Swiss franc or buy GBPCHF. You should buy GBPUSD and buy USDCHF at the same time with the same amount being assigned to each business.
Know that this trading can cost you more transaction costs, but it opens huge opportunities for you because you have as many pairs of different currencies.
An exchange that I do every year is the following and this often happens to be one of the best performers.
It is a fact that most currencies tend to have their height or weak for the year in the month of January. So at the beginning of each year, I am looking for the weakest currency and the strongest currency based on interest rates, economic strength, feeling, etc. And just take a stand and leave it. In many cases, trade is in a currency cross.
Stay with majors most of the time, but keep your eyes on the crosses, for great opportunities for long-term negotiation.