Smaller funds leverage a larger market
-
Leverage 1:1000
-
-
Minimum 0.001 lot
-
-
Products up to 1000+
Currency Pair Trading
What is Currency Pair Trading
What is Currency Pair Trading? The English name of currency pair trading is Forex Exchange, abbreviated as FX. Currency pair trading was originally generated with international trade and is also a tool for international bond debt relations. With the development of the economy, currency pair trading has become an important financial product of the country. Its scale exceeds that of the stock market or any other market and is one of the largest financial investment markets in the world. Therefore, the currency pair market attracts many traders, including beginners and professional investors. Currency pairs are traded in pairs, such as EUR/USD or USD/JPY.
Why choose AvaTrade for currency pair trading
-
Provide competitive spreads
0 commission, save your transaction costs -
9 levels of supervision in 5 continents around the world, repeatedly won
awards, and was praised by the financial industry media -
Flexible leverage, the highest leverage of currency pair trading
can reach 400:1, which can appropriately expand funds -
Diversified trading platforms ,
MT4/MT5/
WebTrader/AvaTrade Go can be traded -
Supports two-way trading,
buy and sell at any time during the trading day, and there is a possibility of profit whether the price goes up or down -
One-to-one exclusive account manager
5x24 hours online Q&A
Classification of trading currency pairs
Direct currency pairs
Global economic powers: the United States, Japan, the United Kingdom, the Eurozone, Canada, Australia, Switzerland and New Zealand, the currencies of these countries are paired with each other to form major currency pairs, such as the seven major currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF, AUD/USD and NZD/USD.
Cross Currency Pairs
Currency pairs that do not include the US dollar can be called minor currency pairs, which are paired with other major currencies, such as: EUR/GBP, CHF/JPY, etc. There are also major currencies matched with a minor currency, which can also be called exotic currencies, such as: EURTRY, USDNOK, etc.
Main factors affecting the market
-
Interest rate
Interest rates have a positive impact on currencies, higher interest rates lead to stronger currencies
Driving demand for currencies
-
GDP
When a country's GDP data is high, it shows economic strength
It will make the country's currency stronger
-
Trade balance
A positive trade surplus or trade deficit leads to a related currency
Higher demand for other currencies
-
Employment
Unemployment rate falls, employment rate rises indicating positive economic growth
Good for currency
-
Inflation
Rising interest rates due to rising inflation
Increased demand for currency
-
Manufacturing industry, housing, etc.
Increase in these factors is a sign of health emergency
Good for currency
-
Interest rate:
Interest rates have a positive impact on currencies. Higher interest rates lead to stronger currencies, which boosts demand for currencies.
-
Employment:
A decline in unemployment and an increase in employment indicate positive economic growth, which is good for currencies.
-
GDP:
When a country's gross domestic product data is high, it shows economic strength, which will strengthen the country's currency.
-
Inflation:
Rising interest rates due to rising inflation rates increase the demand for currencies.
-
Trade balance:
A positive trade surplus or trade deficit leads to a higher demand for the relevant currency against other currencies
-
Manufacturing industry, housing, etc.:
An increase in these factors is a sign of a health emergency and is good for the currency
Currency pair trading time
The most obvious difference between the currency pair market and other trading markets is the continuity of time and flexibility in space! The currency pair market is a 24-hour non-stop market. The trading hours of the currency pair market in summer are from 9 pm Sunday to 9 pm Friday GMT; the trading hours in winter are from 10 pm Sunday to 10 pm Friday GMT.
The global currency pair trading markets are separated by distance and time. They are independent and influence each other. Due to different time zones, the currency pairs markets open and close at different times, but after one market ends, it often sets the tone for the opening of the next market. Therefore, in the 24-hour currency pair market, each trading period has its own rules and characteristics, so we only need to understand its rules and adopt corresponding strategies in the appropriate period to greatly improve the success rate of transactions and avoid transaction risks.
What are the advantages of online currency pair trading
-
Low threshold, 100 US dollars can be traded to support 0.01 mini lot
-
High liquidity, ensuring fairness and transparency of currency pair trading
-
5x24 hours, T+0 can be traded anytime, anywhere
-
Two-way trading is possible, and both bear and bull markets have the possibility of profit
-
The trading platform efficiently executes millisecond-level execution speed
-
Flexible leverage, up to 400 times to expand the initial capital
