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13/06/18 Forex education

How does carry trade work – in-depth tutorial for beginners

How does carry trade work – in-depth tutorial for beginners

What is the carry trade strategy and how does it work? Some subscribers to my blog are interested in carry trade strategy tutorial and unlikely to be fully aware of the difficulties in its use. The devil in details as we know, and it concerns any attempts to extract profit from the market. In this article, we’ll talk about what carry trade strategy consists of, when it brings profits and when it leads to disastrous results for a trader.
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31/05/16 Forex education

Chart Patterns: Part 2

Chart Patterns: Part 2

In continuation to our first article Chart Pattern Types: Part 1 we post main trading patterns which you can use as a basic tool in your trading or price action analysis:

Basic algorithm:

1. Pick trading pair (stock, equity, index, other instrument)
2. Pick pattern
3. Check chart history for that patterns to see their confirmation. Remember that the higher timeframe you use the more chances future price will follow the pattern. On 1M and 5M timeframes its hard to use technical patterns as what price does there is generate NOISE.
We advice you to use timeframes above 4H to examine history for the patterns.

Here you can see main patterns:

Head and shoulders


triple double tops&bottoms

Ascending and descending Triangles




Flags and Pennants

Flags and Pennants

Cup and Handle


Add this page to your bookmarks so you can quickly check  the patterns if you forget them. Fee free to ask any questions and don’t forget to share with your friends.

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23/04/16 Forex education

Leverage in details: How it works, Pros and Cons.

Leverage in details: How it works, Pros and Cons.

So you heard some stories that having $200 of your own capital you can turn it $500 or $1000 in a couple of trades. How come that it is possible? No you don’t need to visit casino, just use such wonderful thing as a financial leverage. It is a short-term loan given to a trader, proportional to his deposit. The purpose of this loan is to multiply gains, but as nothing good comes without bad you also multiply losses using it. Basically it allows a trader to earn MORE or to earn FASTER. Or lose in the same manner.
In newbie trader hands high leverage often leads to wiping out trading capital. The problem lies in psychology: it is natural that a human prefers to increase odds of happening of something desirable and decrease probability of happening of something unwelcome, even if both events have equal odds to happen. In trading it results in overrating EXPECTED returns and underrating REAL risks.I want all newbies to read it twice and understand, because it forms a basis of trading using high leverage.
So to get a better understanding of the leverage let’s compare how trading goes with and without it (hope you read my previous article how forex works and know how profit forms in currency speculations)

Trading without leverage (or 1:1 leverage)

Suppose you have $200 and read news today that US Federal Reserve is going to decrease interest rate from 1.00% to 0.50%. Basically it means that the Bank wants to make borrowings of US Dollar cheaper (better to pay 0.5% interest than 1%, isn’t it?). It is reasonable to expect US Dollar will drop against other currencies. You simply exchange your $200 to Euro by the current exchange rate of 1.1300 and get 177 EUR. Federal Reserve does decrease the rate to 0.5%, US Dollar depreciates against other currencies and EUR/USD exchange rate surges to 1.1500. You exchange your 177 EUR back to US Dollars and get 177*1.15=203.55 bucks. Congratulations – you beat the market and earned 3.55 Dollars from forex trading!

Trading with 1:500 leverage

Having $200 and applying all 1:500 leverage you virtually get 200*500=100 000$.  It’s sad, but you can’t withdraw them, I tried :). Basically those money are available for you only when you open some position and they’re automatically deducted when you close a trade. So you open same position in the example above ( buy EUR for Dollars) but now use your leverage. Exchanging 100 000$ to EUR you receive 100 000/1.13 = 88.495 EUR. When you exchange it back when exchange rate rose to 1.15 you receive 88.495*1.15=101769 Dollars. You return the loan and your profit is 1769-200=1569 bucks.

Looks pretty good but don’t hurry to follow this perfect scenario. Lets consider the underside of the leverage – when you are wrong with a market forecast and leverage starts to work against you:

For example the Federal Reserve decided to leave the interest rate untouched at 1.00% and Dollar appreciated against other currencies. EUR/USD exchange rate dropped to 1.1000 on the news. In case of 1:1 leverage if you decide to make reverse exchange you get back 177*1.10=194.7 bucks or bear $5.3 loss.

But what happens with a leveraged trade?

As you exchanged $100 000 to 88 495 EUR at 1.1300 and exchange rate dropped to 1.1000 you get back 88 495*1.10 = $97 345. But you have only $200 in your account what about rest of the loss? Does broker pay it for you? The answer is NO. The broker won’t simply allow you to hold position open till the rate drops to 1.1000 and close your position even earlier. Earlier, but where? To calculate that you need to understand what is pip value and how much profit or loss you get when exchange rate moves by 1 pip.

1 pip is 0.0001 of exchange rate or 1/10000th of the trade size. In our case, 1 pip move causes a change from 1.1300 to 1.1301 (pip up) or 1.1299 (pip down)
In case of 1:1 leverage and $200 position, 1 pip value (in $) is (0.0001*200)/1.13=0.018 or 1.8 euro cents. That’s why when exchange rate dropped from 1.1300 to 1.1000 (300 pips) you could lose 0.018*300 pips~ $5.3.
But when you trade full standard lot ($100 000) pip value is (0.0001*100 000)/1.13= 8.85 EUR. So basically it means that your own deposit of $200 will be wiped out for 22.59 pips. It means that your balance will be zero at only 1.1278 rate. As you can see when using leverage the speed of earning and losing increases significantly.

A careful reader may ask: is it safe for brokers to provide such a big loans (leverage) for traders? The answer is YES, its almost 100% safe for a broker to offer leverage to traders. As currency market has a very high liquidity, when your position reaches critical drawdown, brokers automatically make reversal exchange deduct the loan and leave you with losses. To protect themselves from risks connected with leverage, a position is closed when drawdown reaches 30% of required margin. In our example above, in case of drawdown your position will be automatically closed when drawdown reaches 70% from $200 or 140 bucks. There’ll be only 60 left in your account.

So here is the real trading example of how you can safely and effectively use leverage with SMALL deposit:

Screen Shot 2016-04-22 at 9.34.29 PM

If you have any suggestions or question feel free to ask them in comments

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18/03/16 Forex education

Chart Pattern Types: Part 1

Chart Pattern Types: Part 1

As a continuance of the technical analysis learning, now we will learn about Chart Pattern. Beforehand, it is suggested that you learn the Trend Line and Support & Resistance topic because basically, Chart Pattern is formed by concepts of those prior topics. The nature of Chart Pattern is somewhat pretty similar to what has been discussed on those topics.

As mentioned above, Chart Pattern is a graphic pattern which is made of concepts of the Trend Line and Support & Resistance. This pattern is basically formed by the understanding of traders throughout the world in identifying and responding the happening situation and condition.

In the beginning, Chart Pattern was not something taken seriously in case of technical analysis until 1920s when an accountant named Ralph Nelson Elliot brought up his observation about the relationship between basic concept of Support & Resistance and price tendency to form a pattern. What he put forward had confirmed the existing assumption that humans have similar feelings or emotions for a certain condition or situation. Based on the assumption, Elliot predicted that humans reaction (read: traders) will be identical. It makes a particular pattern recurs until the nature of it is possible to predict or understand.

Actually, Chart Pattern is a more specific form of a trend phase. Chart Pattern summarizes the whole activity perspectively and formatively. It is perspectively because the formed pattern will depend on who is looking at it and formatively because it contains particular formations of price movements.

Basically, Chart Pattern can be seen by different points of view as traders would have dissimilar views on recognizing the occuring event. Yet, in recognizing pattern, the perspective is not the only thing that matters, but the validity as well. Chart Pattern’s validity level on a wide time frame will certainly be higher than the narrower one. For example, it will have more validity to observe pattern on H4 time frame than M15.

In terms of formation, Chart Pattern is divided into two categories, which are Reversal Pattern and Continuation Pattern. As mentioned on the Trend Line topic, reversal is an event in which the price movement takes a “U-turn” or in other words, it is a pattern indicating a reversal of the ongoing trend. On the other hand, Continuation Trend, as what it is called, is a pattern indicating a continuation of the ongoing trend. It is important for a trader to be able to identify and take an advantage of an information as quick as possible if an optimum profit is desired.

Both Chart Patterns have their own forms. Moreover, they have several unique forms in general, which are:

Reversal Chart Patterns:

Head and Shoulders
Inverted Head and Shoulders
Triple Tops
Triple Bottoms
Double Tops
Double Bottoms

Continuation Chart Patterns:

Cup and Handle

Each pattern will be discussed further in Chart Pattern part 2.

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17/03/16 Forex education

Trend Line, A Basic Analysis

Trend Line, A Basic Analysis

The decision to buy or sell should go according to the ongoing trend most of the time. Why does it matter? Placing a buy order in a bearish trend would be dangerously risky as it would be more likely to hit the stop loss than when the trend is followed.

Does taking benefit of the trend gives consistent profits? Trend has become the very foundation of decision making. To gain the optimal profit in forex trade, other analyzing tools would be needed. However, before building a trading system, analyzing the trend becomes an important matter, for system without understanding the trend would be just like blind people not knowing where to go.

How is the trend formed? There are several ways to form it. First, it is by using the line tool provided on MetaTrader4 platform or charting websites such as


A price will form waves (red lines) which are highs and lows. If higher highs and higher lows are continuously formed, it is called Bullish trend. In order to form a trend line when bullish occurs, a line that connects lows and higher lows should be drawn (blue lines). If you want to give it a try, you can go to, pick any pair you desire (such as EURUSD) and a chart would come out.


Tools above could be used to form a trend and help us to recognize if it is in a bullish, bearish, or sideways trend. Afterwards, the highs, lows, higher highs, and higher lows could be decided. After deciding the points, lows and higher lows should be connected for bullish trend or highs and lower highs for bearish trend. When bullish trend occurs, the formed trend is below the price and it is called the support. On the other hand, when bearish trend takes place, the trend line would be above the price which is called the resistance.


As in the example above, the trend line is connecting the low and the higher many occasions, the price was heading to the trend line before reversing to keep on going along with the trend. Trend line is a psychological line that is widely used by traders to decide which price level they would open a position on. In the example above, if we place a buy order on the trend line, there is a possibility that the price would rebound. It shows that forming a trend line would not only help us to gain profit, but to mitigate the risk as well.

Not only the trend line, there are also other indicators we could utilize to recognize a trend. One of them is the Moving Average (MA). MA is an indicator in which the average price of a certain period is shown. For example, MA 10 shows the average price of the last ten days.

How does MA become a trend? As an illustration, let us say that the last ten days average price is 1.1340 and the current price is 1.1240. It means that the current price of the currency pair is being traded below average price that was traded ten days earlier. Such condition suggests that the pair is in a bearish trend which means that if the price hits the MA 10, there is a huge possibility that the price would rebound and be back on its track of declining. Similar to trend line, MA could also be utilized as the support or resistance of the price movement. It can be seen that the MA could function as the support or resistance, being an alternative to form a trend line.


After understanding the utilization of trend, the other important thing to learn is the waves. Waves are the price movements that form a trend. Waves become important because identifying waves is needed to recognize a trend precisely. Waves could be decided by identifying the forming of new high and low.


The capability of recognizing waves would bring us a precise trend line. In terms of utilizing MA, waves are not usually detected in the short period MA most of the time. It would require a longer period MA in order to avoid the waves trap (Tail whip).



There are three types of trend line. They are the uptrend (Bullish), the downtrend (Bearish), and Sideways. In the Bullish trend, the low and the higher low should be connected, while in the Bearish trend, the high is connected with the lower high. On the other hand, in the Sideways, a channel in which the price remains inside the channel without penetrating the highs and lows could be seen.


Now that you have learned what trend line is and how to draw it, what else are you waiting for? Try to draw a trend line on any charting platform you like and share it here with us for a further discussion.

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10/03/16 Forex education

Trading Session? What Exactly Is It?

Trading Session? What Exactly Is It?

Trading Sessions

Forex market is open for 24 hours 5 days a week. This is a really long period of time as it is a sleepless market. For traders, it is really exciting, for they have the opportunity to multiply their profits anytime they desire.

However, just like a traditional market, it’s not always crowded. There are times when it’s so full of traders and there are also times when you can count them with just one hand. That’s how the knowledge of market hours and timing becomes important as you can adjust your trading strategy better so that it suits the market hours and timing, therefore brings you maximum profit.

Market Hour

First of all, we need to know that in forex trading, the market hour is divided into several main trading sessions, which are Sydney Session (Australia), Tokyo Session (Asia), London Session (Europe), and New York Session (America). As we all know, there is a pretty big time difference between Australia and America (+16 hours), resulting the forex market opens all the time as at least one of the markets is still open when the others are closed.


Tokyo Trading Session

Widely known as Asia Market, since Tokyo is the Asian trading center, this session has approximately 21% of the trade share a day with Japanese Yen as its favorite currency traded. Not only Japan, but other strong economy powers, such as Hongkong, Singapore, Australia, and South Korea, are also actively involved in transactions. Similar to China, Japan is an exporting country, leading to Bank of Japan not becoming the sole foreign exchange trader, since China and commercial companies also actively trade.

At certain times, liquidity could be considerably low which could be seen when the price movement is slightly low (price does not change for a fairly long period). Such condition could lead to the forming of breakout level from the previous trend occurs in American Market which results to a consolidation phase of a pair. Most of major movements occurs earlier in the session as it is generally the time where fundamental economy news is being released.  Tokyo Market is likely to have an impact on the next markets session, since traders in Europe and America would observe what was happening in Tokyo Session.

Pairs that are quite interesting to trade in this session would be Japanese Yen and Australian Dollars. Considering that China has grown into new economy power, those pairs would likely to receive a significant impact by the time China releases important news.

Europe/London Trading Session

Europe Market has the biggest trade share with approximately 36% of all transactions. Europe Trading Session is where the transaction highly occurs as thousands of “big bosses” throughout the world put themselves in.

This session has some characteristic. Firstly, as it overlaps other markets, it makes this session exceptionally crowded. It also leads to a high liquidity and volatility and low pips spreads. Secondly, trend that occurs during this session mostly would keep its track until the beginning of New York Trading Session. Thirdly, the volatility would be low at noon during the lunch time, waiting for the New York Trading Session to open. Some important news in Europe would also affect the price movement.

During this session, all pair would usually become interesting because of the number of traders involved. However, the tightest pairs would still be the major pairs, such as EUR/USD, GBP/USD, USD/JPY, and USD/CHF.


Market Hour (GMT)

New York Trading Session

This market takes around 19% of the trade share. New York is the center of trade and business in America. This city is also widely known as “The City That Never Sleeps”. We also know that US Dollars is the world currency as it is involved in nearly 90% of the world trade.

This session also has certain characteristics. Firstly, it has high liquidity because of its overlapping on London Trading Session. Secondly, when the US government release important news, prices in the market would be significantly affected, since most of the world trade involves US Dollars in it. Thirdly, after the London Trading Session is closed, the liquidity and volatility would tend to lower (during mid day in America). Fourthly, on Friday, transactions would reduce as Asian and European traders are no longer active on the weekend. Finally, trend reversals could possibly occur after the afternoon session in America. It is caused by traders unwilling to keep an open position to avoid unwanted events triggered by releases of news during weekend. Just like in Europe, every pair would be good to trade in this session but a full attention should be given because when important news is about to be released, price of US Dollars would usually move wildly.

General characteristics of each session have been discussed. Now let us proceed to pair’s characteristics on certain day so that a full picture would be gotten and timing of transaction could be well decided.

Below is pips movement of each pair on each day:


It can be seen that Wednesday, Thursday, and Friday are the busiest days. So, the best time for forex trading would be in London Trading Session on Wednesday, Thursday, and Friday because it is the busiest time and the overlapping period would provide high liquidity and volatility and higher chances to gain profit in shortest time possible.

When is the worst time to trade?

For aggresive traders, Asian Market would not give the best satisfaction due to its low volatility and liquidity. Saturday is also not recommended because it is time when the market is closing (after afternoon session in America). Finally, when world major events are happening, such as FIFA World Cup, the market would tend to be quiet as traders’ attention would be distracted.

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29/01/16 Forex education

What is Forex Trading and how it works?

What is Forex Trading and how it works?

FOREX (abbr. from Foreign Exchange) in the broad sense – an aggregate of exchange operations between large banks and other financial institutions like pension funds, insurance companies and transnational corporations. The needs to carry out such exchanges can be different – banks and companies keep reserves in different currencies for their operational needs, hedge funds buy and sell currencies to earn on fluctuations of exchange rates.

The daily volume of transactions on Forex market is incredibly high – about $5.3 trillion per day in April 2013. It greatly exceeds the turnover on stock markets – for example daily trading value of biggest stock exchange NYSE averaged only $169 billions in 2013. 

Let’s take a glance on some useful statistics related to Forex market:

Screen Shot 2016-02-02 at 8.36.36 PM

As we can notice, USD and EURO represent most traded currencies in the world with about 3/4 of daily trading volume.

Screen Shot 2016-02-02 at 8.35.51 PM

US and European banks seems to be the biggest currency traders.

Screen Shot 2016-02-02 at 8.35.03 PM

Daily trading volume has been steadily growing throughout the given period with a dip in 2001 caused by financial crisis in 1998.

So, when we hear something like “Euro became weaker against Dollar” or “Japanese Yen appreciated against Australian Dollar” it invites reasonable question:  What makes exchange rates fluctuate? To answer this question lets consider the state as a big company and national currency as its share. As logic suggests the better company performance the more value receives its shares. So basically, changes in exchange rates reflect how one company (country) outdo in performance other company (other country). 

There are tons of domestic circumstances that leave impact on a country’s economy. By and large we can divide them in two categories: Internal and External. All of them in their underlying principle contain the theory of Supply and Demand. Macroeconomic changes, geopolitical events, natural disasters can be referred to domestic factors, while changes in commodity prices (especially energy), increasing or decreasing supply or demand for certain goods can be considered as external. 

Here are two schemes that can help to understand the impact of both internal and external factors on national currency:

For Internal:

Russian Central bank decides to increase interest rate for Ruble => borrowing costs of Ruble increase (money “become more expensive”) => Russians borrow less and spend less, Foreign Investors tend to buy Ruble as it ensures more return => Amount of this currency on forex market decrease (thus the demand for it increase) => the value of Ruble increase.

For external:

China Oil consumption fall => Supply doesn’t change so world market gets oversupplied with Oil=> Price on Oil declines => Oil return for exporters like Russia drops => Russian economy deteriorates => Ruble becomes cheaper. 

Of course these two basic examples demonstrate clearly how currencies are affected by certain circumstances and describe fluctuations in their plain way, but given that the number of factors can reach thousands or millions its impossible to predict how the exchange rate will change in next 5 minutes (obviously current computational capacities are not enough to collect and analyze all information that may have impact on certain currency). Its essential to know that important economic and political events form only long-term trends in exchange rates – the wave that can  form weeks or months or even years, consisting of numerous smaller waves.

Alright, seems we’ve dealt with a notion of exchange rate fluctuations. Let’s take a look under the hood.

As you may already have guessed, forex market operates 24/5 (banks don’t work during weekends). 24/5 means that exchange rates are continuously floating from Monday to Friday. The continuity is achieved by Trading sessions, which times of operations overlap each other. Look at the picture below to get a clue on how trading sessions work:

London session is considered biggest by trading volume, second is New-York session. Asian and Australian sessions feature with lowered trading activity (amount of transactions). The overlap of London and New-York session is considered to be most active time of trading. In trading terms it means “time of best market liquidity”. 

That’s it for today. In next article we’ll get insight into how retail forex trading works and how access to biggest market in the world can be served to any trading newbie.

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29/01/16 Forex education

How currencies are traded in Forex?

How currencies are traded in Forex?

In our opening lesson “What’s Forex and how it works” I provided a brief account of main participants of currency market and what make exchange rates fluctuate. It is essential information you need to know, but not sufficient to start trading. Let’s examine exact process of how currencies are exchanged, what are costs of these transactions and how to profit from them.

First thing you need to know is that currencies are traded in PAIRS. Not in triads, quartets etc. Symbols like EUR/USD or USD/JPY mean two currencies that “compete” against each other – EUR/USD is EURO vs US Dollar, USD/JPY is US Dollar vs Japanese Yen. When you see a message that EUR/USD fell by 1% it means that EUR value decreased against USD by 1% or USD appreciated against EUR by 1%. It can sound a bit confusing so lets put it simple, considering on the of currencies as a “good”:

Screen Shot 2016-02-08 at 2.42.34 PM

A currency that comes before “/” is called “base currency” (good), currency that comes after “/” is called “quote currency” (money you pay for the good) and the number in right side is “exchange rate”. In our case EUR/USD=1.10 means that if we buy 1 EUR we pay 1.10 Dollars, if we sell 1 EUR we get 1.10 Dollars.

Consider other examples:

USD/JPY = 118.20 –  to buy 1 Dollar we pay 118.20 Japanese Yens, if we sell 1 Dollar we get 118.20 Yens.

EUR/GBP= 0.77  to buy 1 Euro we pay 0.77 pounds.

So what “EUR/USD rose from 1.10 to 1.12” exactly mean? It means that to buy 1 Euro we now need more Dollars (1.12 USD instead 1.10 USD). In other words we need to spend more Dollars to buy Euros or Euro became more expensive that USD.

When exchange rate rise = base currency become more expensive or quote currency become cheaper.

When exchange rate drops = base currency become cheaper or quote currency become more expensive.

Hope its clear. Moving further.

Now we understand which exact changes mean fluctuations in exchange rate. So if we expect that exchange rate of EUR/USD will rise how to profit from it?

The answer is – we should buy EUR/USD. When we make such transaction it means that we buy EUR and pay with USD for it. And vice versa, when we sell EUR/USD it means that we sell EUR and get USD instead.

Here are simplified calculations of what happens when you try to speculate on currencies:

For example you think that exchange rate of EUR/USD will rise from 1.10 to 1.20. You buy 100 000 EUR paying 110 000 USD for it. Then exchange rate rises from 1.10 to 1.20 and you execute reverse transaction: Sell your 100 000 EUR and get 120 000 USD instead. Net profit is 10 000 USD.

But what happens if exchange rate falls short of your expectations and drop from 1.10 to 1.00? You buy 100 000 EUR for 110 000 USD but when making reverse transaction when exchange rate dropped to 1.00 you get back only 100 000 USD. Net loss is 10 000 USD.

Here we have important conclusion: Any trade consists of two transactions, where second transaction is reverse to first.

We already know such currency pairs like EUR/USD, USD/JPY, AUD/USD. But how much pairs there are and what pairs are best to trade? Let me try to answer this questions.

Trading is possible providing that there is a counterparty willing to sell you what you want to buy and buy what you want to sell, i.e. make an exchange with you. When you want to sell EUR/USD there should be a counterparty willing to buy EUR/USD in the same amount. Same for reverse transaction. It is quite logical that the more members willing to exchange the better for every member as they can complete exchanges faster. Its called Liquidity. The bigger is Supply and Demand the better is liquidity. Did you guess which currency pair is most liquid? Of course it is EUR/USD. It means that if you decide to buy 10 000 000 EUR for USD at current exchange rate I’m pretty sure you can do that almost Instantly. But if you try to exchange 10 Million Dollars for example to Mexican Pesos it should take some more time because there’s less Supply of Pesos and probably less demand for such amount of Dollars (less number of market participants). In this case, it is said market has thin liquidity.

Returning to our main question which pairs are popular in forex and why are they and not some other:

The answer is: most popular pairs are those with best liquidity. They’re split into groups:


EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD. Why are they? Because United States, European Union, Japan, Switzerland, Canada, Australia are biggest economies in the world thus has biggest Supply and Demand on their national currencies on foreign exchange market.

Next are cross pairs:

EUR/CHF, EUR/JPY, NZD/JPY, EUR/GBP, CAD/JPY. These are just some of them. Why are they called cross pairs? Because these are major currencies but not quoted in Dollar. They are less liquid than majors but enough to trade with large positions (200 000, 500 000 currency units or even more).

And last are minor pairs or so called exotics:

USD/RUB, USD/TRY, USD/NOK, USD/MXN, USD/ZAR, USD/SGD. Most of them has USD as second currency because only with USD they have adequate liquidity to make trading possible.

Okay, now we know that there are three types of currency pairs and they all have different liquidity. But what pair to choose for trading?

Actually the question is incorrect :). Quick glance may suggest that best pair to choose is EUR/USD or other majors. But its not absolutely true. For example USD/MXN may be more preferable for you because you’re living in Mexico and know your national currency – Mexican Peso (MXN) better than international traders. You can get quicker access to local news, events, government decision that may affect currency and thus USD/MXN exchange rate and turn it into your favor. In trading terminology its called “EDGE”. Having an edge means know something that other traders may don’t know and what you can use to predict the moves of certain currency. Trading knowledge, access to information and quick response are three main constituents of consistent profitable trading.

In next lesson we will study what are transactions costs – Spreads and commissions and how they connected to liquidity of a pair. We will also find out what are other expenses you can incur during your trading.

Thanks you for reading this article.

See ya next time.

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