How to get the most profit in trading?
Today, any broker offers a large selection of assets for trading, it is the currency itself, as well as stocks, metals, and so on. But you need to understand that not all of them are equally beneficial. So what to choose? Traders are advised to focus on EURUSD. This is really the best currency pair due to its properties. Next, we consider them in more detail.
1) Variability
All trader activities are based on price changes. And the profit will be the greater, the greater the difference in the price of buying and selling a currency. The more volatile a currency pair, the more opportunities to make a profit. It is not difficult to guess why this is happening. The dollar is a global reserve currency, since all traded commodities and international transactions are expressed in this currency. The euro is the single currency of 14 countries, which make up a large percentage of the world's trading volume, can be exchanged for any goods and services.
2) The relationship of economic and commercial activities
This is especially high in the US and the Eurozone. Therefore, it is not surprising that the two currencies that make up the EURUSD pair are the most traded foreign exchange markets.3) Liquidity
In our case, under liquidity stands the possibility of currency to be quickly sold at a price close to the market. There are always ready buyers and sellers for this pair. Therefore, it is the best option for trade. When the market is liquid, operating costs are low and trading goes very fast. Since EURUSD is the best-selling pair in the foreign exchange market, the operating costs, or the so-called spread (the difference between the purchase and sale prices), are the least compared to other currency pairs. This allows traders to maximize profits. For example, the spread for EURUSD for some brokers is 0.8 pips, while for EURCAD it is usually 10 pips or even more. It may seem insignificant for some traders, but for large companies with large volumes of trade, the value of 1 pips reaches $ 10,000.
4) Predictability
EURUSD is a very predictable currency pair. News from the ECB give impetus to monetary policy and are always direct and unambiguous factors affecting the value of the Euro. The same can be said about the dollar. Analyzing the political and economic news of the USA and the Eurozone, a trader can easily predict the price movement on EURUSD and make the right trading decision.
EURUSD is a very predictable currency pair. News from the ECB give impetus to monetary policy and are always direct and unambiguous factors affecting the value of the Euro. The same can be said about the dollar. Analyzing the political and economic news of the USA and the Eurozone, a trader can easily predict the price movement on EURUSD and make the right trading decision.
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How to get the most profit in trading?
