When traders want to trade in BinaryOption, they have got a wide range of assets to choose from. The assets range from currency pairs; stock indices, currency and commodity exchanges; shares of companies, for example, Apple or Microsoft; commodities, including oil and gas; precious metals, gold and silver, platinum; and cryptocurrencies.
Many BinaryOption traders would like currencies to trade, however, because they could benefit from their both technical and fundamental analysis of market movements. To simply capitalize on a potential profit in this field, both novice and experienced traders can use this particular asset. But before jumping headfirst to trades, let’s have a look at the 6 most traded currency pairs.
The most-traded major currency pair is the Euro and the U.S. Dollar. (In all pairs the first currency is called the “base” currency and the second one the “quote”). This pair has a negative correlation with USD/CHF, a positive correlation with GBP/USD, the best liquidity in the forex market, a lower amount of volatility, and a very low spread.
USD/JPY: Trading the “Gopher”
Known as the Dollar Yen or the ‘Gopher’, this pair doesn’t move as much as many other USD-based pairs have a positive correlation with the USD/CHF and USD/CAD currency pairs because of having the U.S.
Dollar as the base in all the three pairs. This pair offers a potential profit due to the Japanese intervention to strengthen Yen. U.S. traders who like to trade in the evening can choose this pair because of Asian time.
GBP/USD: Trading The “Cable”
Known as the Pound Dollar or the ‘Cable’, because of a somewhat positive correlation between the British pound, the Swiss franc, and the euro, this pair is negatively correlated with the USD/CHF and positively correlated with the EUR/USD. This solid pair has good liquidity and movements, less volatile than GBP/JPY currency pair, but more volatile than EUR/USD.
USD/CAD: Trading the “Loonie”
Known as the “loonie” this pair tends to be negatively correlated with the AUD/USD, GBP/USD, and EUR/USD pairs due to the U.S. dollar being the quote currency in these other pairs. The movements are sometimes very surprising and there are often unexpected reversals because the liquidity of this pair is a lot less. USD/CAD is often referred to as a commodity currency pair, as the price correlates strongly with oil. Canada is one of the largest oil producers in the world, and the price of the USD/CAD usually is dependent on the price of oil.
USD/CHF: Trading The “Swissie”
Great during European and U.S. market hours to be traded, this pair has a negative correlation with the EUR/USD and GBP/USD pairs. This is due to the strong positive correlation between the Swiss franc, the British pound, and the euro.
AUD/USD: Trading The “Aussie”
Known as the Aussie Dollar or simply the ‘Aussie’, this pair correlates negatively with USD/CAD, USD/CHF, and USD/JPY pairs due to the U.S. dollar being the quote currency. (Both the Canadian and Australian dollars share a positive correlation with each other as both are commodity block currencies.) The movements in this pair are also sometimes very surprising and there are often unexpected reversals due to the low liquidity. AUD/USD is often referred to as a commodity currency pair because the prices correlate strongly with gold. Australia is a large producer of gold and therefore the price of AUD/USD is typically influenced by the price of gold. Now that you know the most traded currency pairs and a bit of the correlation, you might go on deeper in trades and be a bit more certain on your them. Just keep it in mind that if you are a beginner, try to start on a demo account and just invest real money when you are sure of your analysis and chosen your certain currency pair.