Volatile currencies with low spread
Very often beginners who come to Forex, or stop entirely on EURUSD, or start trading all trading instruments. This is a big mistake that leads to a large negative consequences for your account. It is necessary to focus on 2-3 volatile currencies with low spreads. Do not add to your shopping list too many financial instruments, as you can not keep track of all. But at the initial stage of acquaintance with Forex you need the most detailed study of all the peculiarities of the behavior of the currency pairs, to understand the psychology of the market.
What is volatility?
Volatility - a measure of the price variation per unit time. On the volatility of the currency pairs have a great attention to the number of players and open market transactions, currency speculation, the trading session, news outlet and more. The higher the volatility of the currency pair, the greater the prospects for profit and higher risks.
The most volatile currency pairs with low spreads
The most popular currency pair among traders is the EURUSD, it has low spreads, shows the greatest activity during the London trading session, and be influenced by economic news. Despite the popularity of the euro / dollar, we would recommend to sell GBPUSD, as it has a more pronounced trend movement and great for scalping and intraday trading. The most volatile trading tools are a pair of the Japanese yen, but they have quite a large spread. Among the most attractive to trade currency pairs are the USDJPY and EURJPY. Beginners should not trade the GBPJPY, as it has a large spreads and a strong movement against the trend of pins knocked foot.
What currency pairs to trade is not necessary?
Also, beginners should not trade exotic currency pairs, such as USDZAR, USDRUB and others. They have large spreads, lower volatility, and are difficult to forecast and technical analysis. For beginners, more suitable EURUSD, GBPUSD and USDJPY. As a broker can advise RoboForex, as it offers very tight spreads and is perfect for intraday trading.