There are many currency pairs offered by binary option brokers. This lesson teaches about currency pairs and gives personal insight into which currency pairs should be traded.
BO111 Lesson – Forex Pairs Video & Transcript
Welcome to Binary Options 111: Forex Pairs. This is Sam, from binaryoptions.education. As mentioned at the beginning of this Binary Option 100 training course, binary option brokers offer a variety of binary options which can include stocks, commodities, indices, and Forex.
The principles that I’ve taught throughout this course are applicable to any binary option offered by a binary option broker. And the charting programs I have recommended offer charts on a variety of stocks, commodities, indices, and Forex.
But the reason I’ve made this video, is Forex is definitely the most popular binary option traded. And for those new to binary options and Forex, it can be quite confusing when it comes to which currency pairs to trade. And hopefully this video will provide an insight to that question.
So as mentioned, there are a number of currency pairs available to trade, but currency pairs are generally split into two major categories– the majors, and others.
The major currency pairs consist of six currency pairs that are internationally the most traded. And the majors are the Euro against the US dollar, the pound against the US dollar, the US dollar against the Swiss Franc, the US dollar, Japanese yen, the US dollar, Canadian dollar, and the Australian dollar against the US dollar.
Some other currency pairs that are not majors, could include the Euro, Japanese yen, the pound, Japanese yen, Australian dollar, Japanese yen, the Euro against the pound, the Euro against the Swiss Franc, the Australian dollar against New Zealand dollar, and the New Zealand dollar, US dollar.
I would recommend that you trade the majors, and their reasons for that. First of all, because they are the most traded currency pairs internationally, a lot of traders are analyzing the charts of the majors for trading signals. So if there’s an obvious signal on Euro, US dollar to sell, there could potentially be a bigger price movement on Euro, US dollar than if there was a signal to sell on the Australian dollar, Japanese yen.
Another reason why I would recommend trading the major pairs– because these are the most popular currency pairs. Binary option brokers normally have a more competitive payout for these currency pairs.
So you may find that there are higher payouts with the majors than with the currency pairs offered by a binary options broker. You will notice I’ve highlighted four currency pairs under the majors column. The reason being, four currency pairs should be more than adequate– you may want to trade every currency pairs that is termed as a major. And every trader is different. But I personally recommend these four majors, and would suggest four currency pairs is adequate, especially for a newbie binary options trader.
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