publish2017-07-13 7:31 pm

backBack to the list of Articles

Choosing a currency pair to trade binary options – majors or crosses?

what currency to choice

Trading binary options with currency pairs is one of the most popular and fast growing binary options trading modality worldwide. The forex exchange market is open almost 24 hours weekdays and the information available to the public is massive, making it easy to anticipate the trade parity price accurately moving direction.

Understanding currency pair majors or crosses

•    Currency pair is the market price of any two preset currency traded in the forex market. E.g GBP/USD British pound to American dollars or EUR/USD Euro to American dollars
•    Base currency or transaction currency is the monetary unit from which the quotation is made. The base currency is the first currency of the equation or the one in the upper part of it. e.g. GBP/USD, the British Pound is the base currency of this currency pair.
•    Quoted currency is the second currency of the currency pair, and it represents how many of this currency is needed to buy one unit of the base currency. E.g. GBP/USD 1.54 means you need 1.54 USD to buy one GBP.
•    Major is the name given to the most important currency pairs, which are formed by the strongest world currencies market value in USD. The major represents the global commerce and all of them are quoted in USD. The USD is the quoted currency of each major currency pair. GBP/USD, AUD/USD. EUR/USD, JPY/USD,
•    Crosses are the name given to the currency pair formed by two of the main currencies without using USD, e.g. GBP/AUD, CAD/GBP, GBP/USD, etc.
•    Exotic currency is any of the other world currencies, they are called exotic because the trading volume is lower than the major’s volume
•    Exchange rate is the market value of the currency pair.  EUR/USD 1.11 this means that for each euro you have to pay 1.11 USD, GBP/USD 1.54 this means that for each British pound you have to pay 1.54 USD.

Which currency pair to trade binary options – majors or crosses

Choosing a currency pair to trade will depend on mostly on your personal preferences and, the financial information sources that you use as a reference to get the market trends and updates. When you select Majors, mainly you are just considering the strength of the American economy against the selected region. On the other hand, when you choose to trade crosses you are considering two areas and their economic strengths individually,  trading binary options with Crosse’s currency pair requires that you analyze both countries or regions financial and economic indicators.

Advantages of Major currency pair to trade binary options

•    Widely spread Financial Information most stock exchange and financial markets report in real time the current and recorded exchange rate for major’s currency pairs.
•    Price stability the currency pair exchange rate is very stable and the global economic indicators could anticipate any changes, price trend tend to last longer than crosses
•    Trade around the clock 18 hours a day, the major rates are changing, this can mean better profits opportunity each time you adequately anticipate the price moment.

Advantages of Crosses currency pair to trade binary options

•    Bigger profits the exchange rates between the two currencies are more volatile and can change abruptly during the day or the week.
•    Inside information. The exchange rate depends on local and regional policies, which information can be not widely spread around the globe giving an edge to those who can get it first by reading local news.
•    Time zone advantages if you trade during the market operations you can get fuel benefits of your Binary options trading strategies.
iq option banner

Relates Tips and tricks...

publish2018-04-25 5:49 pm

GameCredits Review- Cryptocurrency Guide

GameCredits is also known as GAME which is a project that is based on blockchain and it aims to become a single payment solution for the online gaming community. However, on the official website of the project, the team has shared their mission to become the universal currency for 2.6 billion players around the world.

Read more...

publish2018-04-24 3:24 pm

Humaniq Review - Cryptocurrency Guide

There are many other online banks that are making use of blockchain technology, but this project has taken a much expanded approach for online banking with the help of blockchain technology. However, the team aims to connect billions of people from around the world that have no access to the bank.

Read more...

publish2018-04-22 5:52 pm

Bytecoin Review - Cryptocurrency Guide

Bytecoin is the first type of cryptocurrency which ensures that secure CryptoNote protocol can be used for the security of users. It provides 100% untraceable transactions with the help of ring signatures and stealth addresses. However, the algorithm of Bytecon which is known as CryptoNight was created by BCN developers in collaboration with CryptoNote team.

Read more...

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Economic Calendar

Powered by Myfxbook.com

The information contained in this website is for general information purposes only. This information is not an alternative to investment advice. Financial instrument and investment options are highly complex instruments, any potential client needs to study and fully understand the risk and financial implication before he engages or stars using any of those. We encourage searching for private and expert financial advice and getting sufficient knowledge before you start trading and every time you consider any financial instrument. Statrader.com is not licensed nor authorized to provide investment advice or investment services. Statrader.com does not promote, advice, or make any personal recommendation to clients to trade binary options nor to hire or work with any binary trade broker. This website is independent of binary broker featured on it. Before any client star trading or use any broker service, he must do his own investigation about broker legal license, registration and government authorization to ensure his suitability, and client must completely understand all the risks involve with any financial instrument and/or trading options or opportunities before he even considers start trading. The information is provided by Statrader.com, we make no representations of warranties of any kind, express or implied about the accuracy, reliability, suitability with respect to the website. Any reliance you place on such information is therefore strictly at your own risk. This Statrader.com has financial has financial relationships with some of the product you see on this website. Strader.com may be compensated every time a potential client click any of those links and/or open an account of hiring any of the services offered by third parties. Binary options trading entail a high risk for all potential clients to lose all of their invested money.

Copyright © 2017 · statader.com

Recommended Crypto Exchange for Beginners
bitbay banner
Popup