During this pandemic, inventories will continue to rise. The currency used is also different. This digital currency is certainly useful for making virtual transactions such as forex currencies.
If you have enough money, you can get different types of shares. However, the value of currency is not always the same. You need to know the latest currency trends. In fact, you can’t just pick whatever currency pair you have.
The same goes for forex currency pairs. Before you can trade, you need to choose a forex currency. The reason is to help you understand the characteristics of these currency pairs.
You can adjust your strategy and settings to your expectations and minimize risks.
Transactions with forex currency pairs
Transactions in Forex currency pairs can be divided into three categories: Mainstream, Cross-Current and Exotic Current. This classification is based on market volatility and liquidity.
1. Major Currencies
This first pair is a currency pair that is pegged to the US dollar or dollar. But in the first group, it is not the only currency.
However, products pegged to the US dollar are also backed by important guarantees, such as gold. For the main warranty itself, USD, EUR/USD, AUS/USD, NZD/USD, USD/JHS, etc.
2. Cross-currency
This second type of currency does not include the US dollar, which is a currency pair unrelated to the US dollar. This second category is still very liquid and widely used in the forex market.
In terms of liquidity, it is not inferior to its main features. However, transactions require more functionality to perform currency processing analysis.
Because? Because the motion is more unstable than the great current. Examples of this second category are EUR/JBY, AUS/JBY, NJD/JBY and so on.
3. Exotic Currency
Currency pairs in developing countries. Therefore, the currencies of these developing countries are pegged to the US dollar.
For example USD/TNY from Turkey, currency EUR/TRY or USD/ZAR from South Africa, USD/MXN from Mexico and USD from Singapore dollars.
There are three types of common and rare forex currencies. You can choose from 3 types. You must select an action for the discount.
Choosing a forex currency for beginners
So how do you choose a currency for beginners? In general, beginners are advised to choose a main currency. This first currency movement is more stable than the others.
In general, however, you can determine which currency options work best for you by following these steps:
1. Choose a low-risk currency pair
If you choose a low currency pair, you can choose EUR or USD. Why do you need two currency pairs? The currency is more stable and there are no major fluctuations.
Because this fluctuation is small, the risk is small. So you don’t have to worry about the benefits you get.
Another reason is that the speed of this currency pair is also low. So the benefits you receive are maximum.
2. Select a dynamic currency pair
If you are interested in something more worthwhile, the currency pair is DDBI/USD. This currency pair is more dynamic than the US dollar.
This pair is also slow, so you can make better use of your trades.
3. Understand the risks of each currency pair
The currency pair you are trading. Make sure you understand the risks and their relationship.
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Let’s say you’re not brave enough to take big risks. Avoid cross-flows and exotic currency pairs such as USB/ZAR and JBP/JPY.
Because? These currency pairs are so dynamic that you need to carefully choose the right time to enter the market. It can be a cross flow or an exotic flow.
You should remember tips for choosing a forex currency so that you can choose a forex currency without taking big risks. Especially for those who are just starting out in this world, choosing one currency pair is not enough.
Criteria for choosing a forex currency
When choosing a currency pair, there are some criteria that you need to understand. You can choose currency criteria based on daily transfers, daily volume levels, and the impact of basic news.
Here are some criteria to choose from!
1. Based on daily running
This daily ride is called the average price and is the difference between the high and low prices for a particular time period or session.
Price Fluctuation Forex is divided into various options that can be adapted to the needs of each trader. If you are a beginner breeder, you can choose a relatively small variety.
2. Based on volatility model
What is volatility? Volatility is the distance between the high and low fallback prices. If high volatility means that prices are rising, then prices are falling rapidly, so the gap between rising and falling is very large.
However, if you are interested in high volatility trading, you can use GBP / USD and GBP / JPY currency pairs.
3. Based on market fundamentals
As is known, news brings about big price fluctuations. Even a single story can change trends in the short term.
As the average trader hears news to inspire speculation. If you find yourself in this situation, you need to find a reliable news source for the currency you are trading.
For those who want to see the latest news today. You can see it at forexfactory.com or investing.com. Now everything is done.
What is the forex currency description above? Would you like to try it? For those who just want to sign up as a Forex client. You can do the following steps!
1. Join the group on the ladder of the future.
2. Deposit of funds.
3. Money will be deposited in the bank. Banks usually have separate accounts or so-called separate accounts.
4. Participate in forex trading.
Now, this is a pre-action or plan for forex trading.
How to Trade Forex Safely?
So how can you safely trade forex? You can do the following steps!
1. Learn to trade forex with a demo account
2. Select the appropriate broker
3. Prepare appropriate capital
4. Loss of disconnection
So this is a description of forex currency. There is also a lot of literature to see and read.
