The Forex market is the largest and most liquid trading facility in the world with a daily turnover of more than 5 trillion dollars.

The Forex market that is opened 24/5 and considered to be the largest and most liquid trading facility in the world. The turnover is more than 4 trillion Dollars per day and this number is more than any other market. Forex is intended for buying and selling different global currencies, which are paired into single trading instruments. For example, the Euro vs. the US Dollar (EURUSD). One of the currencies is good, the other one is a tool for paying for this good. The profit from trading is gained due to the currency exchange rate change to one of the directions as time goes by.

No need for large investments to start investing in Forex, as you can use leverage to access stock trading. Thanks to this, traders can perform trading operations that involve bigger amounts of money than they actually have on their accounts. The leverage may increase the profit a trader receives from transactions, but at the same time, it may increase their losses as well.

On the Forex market, one can trade a great variety of currency pairs, which are basically divided into three major groups:

Majors are the most popular pairs featuring the USD and currencies of other influential countries (EURUSD, GBPUSD, USDJPY, etc.).
Crosses are the pairs without the USD (AUDCAD, EURJPY, AUDNZD, etc.). As a rule, they are less active than majors, but may sometimes behave quite surprising while being traded.
Exotics are low-liquid pairs with large spread, movements of which are not easy to forecast. These pairs feature the USD and currencies of the countries, which are not among advanced global economies (USDRUB, USDMXN, etc.).
Several criteria may influence the choice of currency pairs for trading:

The pair must be easily analyzed and forecasted, while force-majeure risks must be dialed down.
When it comes to intraday trading, it’s better to choose highly-volatile currency pairs.
Consideration must be given to the time for trading. For example, USDJPY is more active during the Asian trading session, while EURUSD – during the European and American ones.
It’s not recommended to choose pairs with large spreads.
Every trader chooses trading instruments based on their trading strategies, experience, and attitude to risks. The most popular currency pairs with beginners are EURUSD, GBPUSD, AUDUSD, and NZDUSD, while more experienced traders prefer a wider range – EURUSD, GBPUSD, AUDUSD, NZDUSD, USDCHF, USDJPY, EURJPY, GBPJPY, and AUDJPY.

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